Business Times - 04 Nov 2003


KL doubles funds for ports

(SINGAPORE) Malaysia's Government has doubled its ports budget in a RM9.7 billion (S$4.44 billion) transport infrastructure funding boost.

The mid-term review of the Eighth Malaysian Plan has allocated RM3 billion for ports - up from RM1.5 billion. The government will also establish a maritime training centre in Port Klang and a Malaysian Maritime Enforcement Agency for surveillance and intelligence, and develop a supply chain and logistics master plan.

It announced that dredging and reclamation works would be contracted to local companies.

The review projected Malaysia's cargo volumes would grow at more than 13 per cent annually for the next two years, from 338 million tonnes to 414 million.

Container throughput is expected to soar to 14.2 million TEUs, compared to the projected 10.6 million TEUs this year.

Current port expansion programmes will boost capacity 11 per cent to 481 million tonnes by 2005, with emphasis on Malaysia's key container ports of Klang and Tanjung Pelepas (PTP).

Malaysia's recently-appointed Transport Minister Chan Kong Choy told BT last month that his government will 'assist whenever possible' to ensure the development of Johor into a cargo hub - in particular PTP and Senai Airport - and would leverage incentives to attract business.

Right now an RM280million international port is being planned for Kuala Perlis.

Unrelated news...but some bits!

From Utusan
http://www.utusan.com.my/utusan/content.asp?y=2004&dt=0125&pub=Utusan_Express&sec=Home_News&pg=hn_10.htm

Kuala Perlis fishing villages must accept change

KANGAR Jan 24 - The fire, which razed more than 100 houses in Kuala Perlis last week, not only left a bitter experience to the residents but also signalled the need to restructure the town.

Congested and disorderly fishing villages are fire risk. In fact, the blaze that razed Kampung Puju and Kampung Seberang Tok Pi on Jan 16 was not the first.

In the past decade, Kuala Perlis had experienced a series of fire, the biggest before this was in February 1994 which destroyed 53 houses in Kampung Bahagia and Seberang Tok Pi.

Most of them were wooden squatter houses, destined to cause a fire. At the slightest carelessness, the whole village could turn into ashes.

In the latest fire, a resident reportedly had forgotten to switch off the fan, causing a short-circuit. The fire caused an estimated RM14 million in damages.

Kampung Puju was totally destroyed in the fire, leaving only part of Kampung Seberang Tok Pi.

Former Perlis State Assemblyman, Ahmad Osman told Bernama that his experience of losing his house to a fire in 1984 along with other houses was still fresh in his mind.

"It's still vivid in my mind, a black mark in my life," said Ahmad who is a former journalist.

Kuala Perlis State Assemblyman, Bakar Saad admitted that wooden houses built close to each other in the town made them fire hazard.

While sympathising with the victims' plight, he hoped that Kuala Perlis residents would be open-minded and accept a suitable re-development plan for the area.

The State government had proposed the estuary of Sungai Perlis, including site of the fire, to developed into a commercial area.

The project requires relocation of the residents to a new settlement which is more organised, comfortable and beautiful.

Menteri Besar Datuk Seri Shahidan Kassim said Kuala Perlis which still did not have a fire station should not remain as a death-trap as squatter settlements grew.

He feared that similar disasters would continue to occur if residents chose to live in a congested environment without proper amenities.

If the residents involved accept change, Kuala Perlis could become a beautiful and modern seaside town as it is the main gateway to Langkawi.

Plans are also underway to turn Kuala Perlis into an international port city with the construction of a RM280 million port.

Minister optimistic Port Klang will break into Top 10 ranks




By Sharil Dewa




AS the country has passed the milestone of having broken the 10 million TEU mark, Transport Minister Datuk Seri Chan Kong Choy is optimistic that Port Klang will be able to break into the Top 10 ranks of the world's top container ports this year.

He said that the local ports had performed well over the last year, with Malaysia handling 10.3 million TEUs.

“Port Klang is currently ranked at Number 11 in the world’s top ports, while Port of Tanjung Pelepas is at Number 17, with a 30% growth last year. This is a great achievement and an indication that Malaysia and our ports are growing,” Chan said at a press conference during his visits to the Peninsular Malaysia Marine Department and Port Klang Authority headquarters in Port Klang last week.

When asked if the new consolidated marine service charges scheme, which was sent to the Transport Ministry in December last year, will be implemented within the first quarter of the year, Chan said that the Ministry was currently reviewing the proposal.

“We are still studying the proposal at this point. I can’t give an exact date when it will be implemented or how much it will be increased by.

“We will inform all the relevant parties when we have come to a conclusion,” he said.

The new proposed marine charges will cover pilotage dues, towage dues, pilot detention charges, amendment or cancellation for pilotage services, tug detention charges and amendments or cancellation of towage services.

Later at PKA, Chan said that Malaysia and Port Klang could benefit from the Pulau Indah megahub distribution project, as foreigners would invest in the country and further boost cargo volumes at the ports.

“This project will encourage the participation of multi national companies and commercial service providers that can offer both manufacturing and distribution activities.

“This will equate in making PKA an international hub,” he said.

PKA general manager Datin Paduka OC Phang said that the reclamation project on the island has been completed and 90% of the infrastructure was now finished.

“We are at the discussion stage of what we need to do next. This is a big project as the Pulau Indah commercial zone is a combination of commercial and industry and it is the first of its kind in Malaysia,” she said.

Port security issues to dominate talks



Issues related to maritime safety and port security is expected to dominate the international business forum discussion at the International Maritime Expo (Inmex KL) 2004 in Kuala Lumpur tomorrow.

The high profile session will be held together with a three-day exhibition at the Malaysia International Convention and Exhibition Centre (MIECC) Mines Resort City.

It will see leaders in the shipping, maritime and port sectors, including Transport Minister Datuk Seri Chan Kong Choy and India’s Minister of Shipping Shatrughan Sinha participating.

A panel of experts representing Malaysia and other countries in the region will interact and address issues such as policies and their effects with the audience consisting of senior members of industry.

Inmex, held for the first time in Malaysia, involves the government and the public and private sectors.

It will focus on trends in the development of ports, shipping and shipbuilding in South East Asia and South Asia.

According to the event spokesman, heads from the various transport sectors will have an interactive business forum.

Among the areas of focus are:

·development with a view to ensuring maximum safety and security;

·implementation of the ISPS Code in South East Asia and South Asia;

·maritime safety and security of the mariner including search and rescue;

lshipyard capability and technology upgrade and shipbuilding and ship repairs; and,

·development and promotion of cruise shipping and tourism between Malaysia and India.

Experts who have confirmed participation are Westport executive chairman Tan Sri G. Gnanalingam, Maritime Institute of Malaysia director-general Datuk Cheah Kong Wai, International Shipowners Association vice-chairman Ooi Lean Hin, India’s Ministry of Shipping secretary D.T. Joseph, Shreyas, Petroleum Industry of Malaysia mutual Aid Group general manager Capt Jaffar Lamri, Shipping Ltd chief executive officer Anil Devli, Indian Register of Shipping principal surveyor J.N. Bose and ABG Shipyard director Rishi Agarwal.

A total of 85 companies from 15 countries will participate in the exhibition.

They will highlight the importance of marine safety, ship safety, vessel traffic and management systems, cargo handling, port facilities and services and logistics.

They will exhibit the latest equipment and technology in emerging sectors such as offshore supply and management and fields such as diving, oceanography and mapping.

The China Association of the National Shipbuilding Industry (CANSI) is co-ordinating a delegation comprising of manufacturers of marine equipment and representatives from the dockyards.

The Holland pavilion by the Holland Marine Equipment Association (HME) will highlight 12 of member companies involved in the manufacture of shipbuilding, marine equipment, dredging equipment, safety equipment, security equipment and marine technology.

The `Simulation Tunnel' set up by Beele Engineering B.V., leaders in innovative safety products is expected to be an attraction as they will feature the latest YFESTOS® ‘glow in the dark' products.

These unique products ranging from symbols and pictograms act as substitutes for lighting in periods of emergencies due to power failures, poor light conditions due to smoke and bad weather.

YFESTOS® products and can be set up in a variety of places such as along corridors, steps, rails and on emergency exits.

Business Times - 24 Feb 2004


Klang expected to be among top 10 ports this year

By BETH JINKS

(SINGAPORE) Malaysia's busiest port, Klang, is expected to make it to the list of the world's top 10 container ports this year, the country's transport minister has predicted.

Chan Kong Choy told Malaysian media he was 'optimistic' Port Klang would beat its current No 11 ranking in 2004, by maintaining strong volume growth this year.

Malaysian ports collectively handled 10.3 million TEUs (20-ft equivalent units) in 2003, with Port Klang accounting for 4.8 million TEUs. The second busiest container port, Tanjung Pelepas (PTP), handled 3.5 million TEUs.

Malaysia's three main container ports have started 2004 with good growth.

In January, Port Klang's throughput was up 6.8 per cent on 2003, with 411,366 TEUs being handled at its two terminals, Northport and Westport.

Johor's PTP enjoyed 28 per cent more boxes last month compared to January 2003, handling 337,000 TEUs while the northern Penang Port recorded 10.9 per cent growth, with 56,351 TEUs.

Terminal upgrading and expansion plans at Port Klang's Westport, PTP and Penang's North Butterworth Container Terminal is expected to boost capacity at all three key ports.

First maritime expo in Malaysia draws 60 nations


By SHARIL DEWA




WITH 85 participants from 60 countries and close to 100 booths, the International Maritime Expo (Inmex KL) 2004 is the first of its kind in Malaysia. It ends tomorrow.

The three-day exhibition also features a Holland Pavilion, where 17 Dutch maritime companies have set up booths and information counters.




http://metro.thestar.com.my/news/2004/2/m_2pradeep.jpg

Pradeep...'I hope this exhibition will help Malaysia get on par with the developed countries in communication and IT.'







”There has never been a commercial show relating to the maritime industry held in Malaysia before.

“Besides Malaysia, we have exhibitors from Canada, Hong Kong, Norway, Japan, India, South Korea and Spain,” said Inmex chairman and chief executive officer Pradeep Deviah.

“We are also expecting a group of Chinese and Indian delegates to attend the exhibition,” he added.

Pradeep said the gathering would be an important one for the maritime industry as the country and the industry were growing steadily.

”Right now, Malaysia has the right infrastructure to be a commercial hub that can serve the region as well as the rest of the world.

“With a bit more exposure, I think Malaysia can be the next destination for international players in the maritime sector,” he said.

Besides port authorities and shipyards, there is a significant number of information technology (IT) companies at the exhibition.

“Communication and IT are synonymous with any industry, and maritime is no different.

“I am hoping that with this exhibition, we will be able to get Malaysia on par with the more developed countries in terms of communication and IT,” said Pradeep.

In addition to the exhibition, there will also be an interactive session and a business forum, where maritime safety and port security will be the main topics of discussion.

Pradeep said experts in the industry would be chairing specific topics during the business forum. The speakers include Maritime Institute of Malaysia director-general Datuk Cheah Kong Wai, Westport executive chairman Tan Sri G. Gnanalingam, India’s Ministry of Shipping secretary D.T. Joseph and Indian Register of Shipping principal surveyor J.N. Bose.

“The idea for the forum is to get the experts and players to share ideas and concerns with one another and for everyone to work in a better, safer environment,” said Pradeep.





http://metro.thestar.com.my/news/2004/2/m_2bharati.jpg

Workers setting up a booth belonging to Bharati Shipyard Ltd at the Mines International Exhibition and Convention Centre.






He said judging from the participation in the first exhibition, he was confident that the second Inmex show in Malaysia, scheduled for 2006, would be triple the size, in terms of booths and participants.

He added that he expected about 6,000 visitors at the exhibition over the three days.

The exhibition at the Mines International Exhibition and Convention Centre (MIECC) in Mines Resort City, Seri Kembangan, was launched by Transport Minister Datuk Seri Chan Kong Choy.

Originally posted by baqthier

Plans are also underway to turn Kuala Perlis into an international port city with the construction of a RM280 million port.

How on earth they going to turn Kuala Perlis into an international port city? Isn't that the water is shallow on that side :?

Comply with code, ship owners and ports told




PUTRAJAYA: The Maritime Department has reminded all Malaysian-registered ship owners and ports to be ready to comply with the International Ship and Port Facility Security (ISPS) Code by July 1 or risk obstacles.

Transport Minister Datuk Seri Chan Kong Choy said the code, introduced by the International Maritime Organisation (IMO), was to detect and deter acts that threatened security.

“Failure to comply may cause ships not being allowed entry, not only to Malaysian ports but also to other ports around the world. Even if the ship is allowed to enter, it may be asked to anchor elsewhere, so unnecessary things can happen,” he told reporters after a post-Cabinet meeting here yesterday.

“If ports are not in compliance, then the ports will be classified unsafe. The repercussions will be far-reaching – ships might not call.”

The Safety of Life at Sea (Solas) Convention has been amended to include special measures to enhance maritime security.

Malaysia, a contracting state of the convention, is obliged to ensure compliance by its flagships and port facilities.

This code applies to passenger ships, ships of 500 gross tonnes and above, and mobile offshore drilling units plying internationally.

Port facilities that serve these ships are also required to comply with the code.

There are about 400 ships and 80 port facilities in Malaysia that are required to comply with the code.

Chan urged those involved to comply with the new requirement before July, adding that they should have ample time to take action since reminders were sent to them last year.

He said those who need further information on the code should visit www.marine.gov.my

M'sian Bulk Carriers To Gain From Rising Global Demand


KUALA LUMPUR, Feb 26 (Bernama) -- Malaysian Bulk Carriers Bhd (MBC) expects to see better performance this year in view of the robust shipping business, its chief executive officer Kuok Khoon Guan said.

He said global demand for shipping services had increased, especially, with the coming of China and India as well as the improved Japanese market, which in its heydays controlled 30-31 percent of the global shipping demand.

"With the current state of global economy, a lot of carriers are optimistic beyond the next two years," Kuok said in a press briefing, here Thursday.

The company which was listed on the Main Board of the Malaysia Securities Exchange Bhd (MSEB) end of last year, had registered a pre-tax profit of RM129.97 million for the year-ended Dec 31, 2003 as against RM69.272 million in 2002.

MBC has 15 ships, operating between 20-25 percent on period charter and 80 percent in spot shipping which had enjoyed a strong freight market.

The company had also placed an order for additional 11 vessels for a total US$300 million, of which one was delivered end of last year with the rest expected in 2005 and early 2006.

Of these, five were post-Panamax bulk carriers and six Panamax product tankers but due to the buoyant market, MBC took profit by selling two of the product tankers ordered with gains of US$12 million.

As to whether the company would indulge in trading ships, Kuok said such trading could only be done in a very strong market and right now MBC would like to just maintain its assets.

Presently, 67 percent of the company's revenue was contributed by dry bulk business and 33 percent from its tanker business.

Eventhough the tanker business saw improved freight rates of about 22 percent, it continued to be overshadowed by the stronger rates for dry bulk carriers.

However, demand for tankers has grown with players investing into building new tankers following the gradual phasing of the single-hull besides purchasing modern second-hand tankers.

As for the global scenario, Kuok said the strong demand in the shipping business saw shipyards being booked until 2007/2008 with no immediate deliveries to orders.

The synchronised growth of the global economies led to limited supply of ships to cater for growing demand, congestion in ports as well as players taking longer haul business.

The strong demand also saw freight rates of carriers even reaching US$40,000 per day as against US$20,000 early last year while that of spot shipping commanded up to US$50,000.

-- BERNAMA

MISC posts profit of RM1.56 bil


Malaysia International Shipping Corporation Bhd’s net profit rose 71% to RM1.56 billion in its year ended Dec 31, 2003 from RM910.8 million a year earlier due to better freight rates and contribution from American Eagle Tankers Inc Ltd.

Revenue stood at RM5.32 billion against RM4.05 billion in FY02, while earnings per share increased to 84 sen against 49 sen a year ago.

Business Times - 01 Mar 2004


Third time lucky for Malaysian bunker port

Sources say Syed Mokhtar finds partner to finish huge project

By EDDIE TOH
IN KUALA LUMPUR

AFTER two false starts, businessman Syed Mokhtar Al-Bukhary has found a partner in a Middle Eastern company to help him complete what is probably the biggest bunker port in Malaysia.

A source said the port, which is being developed by Syed Mokhtar's privately held Seaport Terminal at the businessman's Port of Tanjung Pelepas in Johor, will be ready by next year. The executive declined to elaborate.

Another source said the foreign party is a Middle Eastern company, which emerged as Syed Mokhtar's partner in the project after two prospective partners - Petronas and Dialog - pulled out.

The port is seen as a bid by Syed Mokhtar to capture a slice of Singapore's huge business of selling bunker, or fuel, to ships.

Malaysian national oil corporation Petronas had previously looked at the possibility of participating in the Johor project to complement its other and smaller bunkering facility at Port Klang in the Straits of Malacca. In the end, it decided to give the Johor project a miss.

'Singapore has such a big market,' a senior Petronas executive told BT, when asked why Petronas backed out of the bunker project.

Another casualty was Seaport's earlier partnership with Malaysian oil and gas specialist Dialog. BT had earlier reported that Seaport and Dialog concluded in a joint feasibility study that the Johor project was 'not viable'. They terminated their partnership following the study done four years ago.

In the latest development, nothing is known yet of the bunker project's exact size or if it could match Singapore's capacity.

An earlier New Straits Times report said that the bunker island in Johor will see the creation of a purpose-built storage facility of more than 17 tanks for fuel oil and diesel. The exclusive bunkering zone on a 40.5ha site will complement the petrochemical complex that is also coming up in the Tanjung Bin area near the Second Link bridge connecting Malaysia and Singapore, the report added.

Singapore is the world's busiest station for ships to refuel and re-stock essential supplies such as water and food. Last year, the industry generated over S$6 billion in business.

According to Singapore's Maritime and Port Authority, Singapore achieved a new record of 20.8 million tonnes of bunker sales, surpassing the previous record of 20.35 million tonnes set in 2001.

And from March 1, 2004, MPA said it will be allocating two new bunkering anchorages in the western sector of the Singapore port to cater to an increasing number of vessels calling at the port for bunker.

'Bunkering has remained a core maritime activity in Singapore,' MPA said earlier last week.

This is one of those times when I can comfortably say MALAYSIA BOLEH!:cool:

MISC expansion well received



BY JOSE BARROCK



MALAYSIA International Shipping Corp Bhd (MISC) is looking to raise US$2 billion to expand its fleet and to refinance its acquisition of American Eagle Tankers Ltd (AET).

Sources close to MISC say the company is mulling a US dollar denominated bond issue of between US$1 billion and US$1.2 billion. It intends to raise the remainder via syndicated loans.

“MISC has yet to finalise the size of the bond issue. Negotiations for the syndicated loan facilities are ongoing and everything should be finalised before July,” says one source.

It is believed that several banking groups, including BNP Paribas, HSBC Bank, Barclays Capital and Bank of Tokyo-Mitsubishi, have approached the national carrier to put their bids as lead arranger for the loan.

Commerce International Merchant Bankers Bhd, Malayan Banking Bhd, Sumitomo Mitsui Banking Corp, DBS Group Holdings Ltd and OCBC Bank are said to have put in a joint bid.



http://biz.thestar.com.my/archives/2004/3/13/bizweek/bw_4ali.jpg

Datuk Mohd Ali Yasin





MISC needs to refinance a US$830 million one-year bridging loan that it took to buy AET. The national carrier secured financing at 20 base points (or 0.2 per cent) above the London Inter-Bank Offered Rates (Libor). Analysts say MISC is paying about US$30 million in interest per annum for the loan.

AET was acquired for about US$1.1 billion. The deal was completed last August.

The national carrier is looking for a syndicated loan for a period of five to six years, the source adds. Details regarding the bond issue, however, are still sketchy.

Analyst Daniel Griffin of Avenue Securities is positive about MISC's proposed bond issue. “It is a sign of confidence on the part of MISC. It indicates that the company is expecting good cash flow over the next few years,” he says.

Currently, the national carrier has a net gearing of about 0.72, with syndicated loans amounting to about RM6.3 billion. After the refinancing exercise, MISC's net gearing is expected to increase to slightly below one time.

Although the US$1 billion syndicated loan may seem like a huge amount that is set to push up MISC's gearing significantly, the source points out that it is only a refinancing exercise.

Says an analyst from a foreign brokerage, “A gearing of one time for a large shipping company like MISC is acceptable. The industry standard for a shipping company that size is a gearing of between 1.2 times and 1.3 times. Some of the larger players even have gearing ratios of 2 to 2.5.”

Adds an analyst from Mayban Securities: “MISC has a lot of internally-generated funds as well. This mitigates the gearing leverage.”

According to an analyst who attended a recent briefing, MISC managing director and chief executive officer Datuk Mohd Ali Yasin told analysts that the company would be comfortable with a gearing of about one time. But he added that in five years or so, the company's gearing would fall to 0.4 times.

Says an analyst from OSK Securities, “For a company of MISC's size, a gearing level of one is still in the safety zone. What is important, however, is what sort of fleet expansion the company is looking at and what sort of vessels it wants to acquire. If the expansion is in the LNG (liquefied natural gas) sector, it will be positive. Expansions in other segments like, say, the container arm, may not be viewed too positively.”

At present, MISC has about 160 vessels. There is talk of Precious Shipping Public Company Ltd of Thailand acquiring some 15 bulk carriers from MISC for about RM380 million. The vessels were built in the early to mid-1980s, and are being sold at a premium to the market price, due to the current strong charter rates for bulk carriers.

“The bulk segment only accounts for about 5 per cent of MISC's earnings. The company's management has made it clear from the start that it is looking to focus on the company's strengths – energy transportation,” the analyst from the foreign brokerage says.

It is widely believed that MISC is also keen to dispose of some 15 container ships by the end of this year. “The local and Asian routes are generally bleeding. MISC has been looking to sell some of the smaller vessels used on local and the Asean trade routes,” an analyst from Mayban Securities says.

MISC has placed orders for LNG carriers with Samsung Heavy Industries in South Korea, and has ordered another two LNG vessels from Mitsubishi Heavy Industries and Mitsui Shipbuilding and Engineering in Japan, to be delivered this year and in 2005. A very large crude carrier is also on order from Samsung.

It is also buying two 7,600, 20-foot equivalent unit (TEU) container ships from South Korea's Daewoo Shipbuilding and Marine Engineering Co Ltd.

Analysts at the briefing were informed of MISC's plans to add another seven to 12 LNG carriers based on customers' needs. MISC also talked of plans to spend an additional RM10 billion on fleet expansion.

One reason for the aggressive expansion is that Petroliam Nasional Bhd (Petronas), MISC's 62.44 per cent shareholder, is upping its LNG exports.

Britain-based global energy player, BG Group Plc, is said to have awarded a large contract to Petronas to supply LNG cargo to the Lake Charles LNG Terminal Louisiana in the US.

Much of the growth in Petronas' LNG exports is due to the new MLNG3 plant in Bintulu, which was commissioned mid-last year.

The focus on fuel carriage seems to be paying off. MISC for the three financial quarters ended December last year, registered a net profit of RM1.56 billion on the back of RM5.32 billion in sales. Year on year, net profit was up by some 71 per cent and revenue grew by 31 per cent.

As at the end of last year, the company had borrowings of about RM9.35 billion.

LNG carriage accounts for close to 80 per cent of MISC's profits and about 34 per cent of revenue.

Says the Mayban Securities analyst, “The bottom line is that MISC already has a steady stream of earnings from Petronas. This arrangement locks in a large percentage of MISC's business. Anything else the company gets is just a bonus. It is still a very safe bet.”

MISC's shares have been climbing since end September last year, gaining close to 37 per cent to hit its 52-week high of RM13.20 on March 1 this year. MISC ended trading at RM12.90 on Thursday.

Tanjung Pelepas is a great port. ranked at no. 17 in the world;) :okay:

Singapore-based metal traders moving to Johor Port


By ZAZALI MUSA IN JOHOR BARU


AN “encouraging” number of metal traders currently based in Singapore are poised to shift their operations to Johor Port following its appointment as a designated port by the London Metal Exchange (LME).

Johor Port Bhd director (port operations) Dr Lim Meng Soon the port would be signing agreements with the traders within the next few months.

He said most of the traders had cited the high cost of logistics and warehousing in Singapore as the 2 main reasons for their decision to move elsewhere.

“Being appointed as a LME-designated port is a milestone for us as it will surely bring more business opportunities,” Lim said at a press conference in Pasir Gudang yesterday which was called to confirm a StarBiz report of the appointment.

Lim said official word of the appointment came on Tuesday after much work by Johor Port in upgrading its facilities over the past 2 years.

The port would be providing warehousing facilities to the LME for the trading of non-ferrous metals – primary aluminium, aluminium alloy, lead, zinc, copper, tin and nickel.

According to Lim, Malaysia is only the third Asian country to have a LME-designated port.

The other two are South Korea and Singapore.

He said Johor Port was given the nod because of its high operational efficiency and ability to provide world-class warehousing facilities to international metal traders at competitive rates.

At the moment, 60,000 sq m of warehousing space has been allocated for use by registered traders of the LME.

Lim said that with the LME appointment, the port could expect a big increase in throughput of both bulk and break-bulk cargo.

“Most of the metals will be shipped to other Asian countries, with the bulk going to China where there's a surge in demand for the products,” he added.

Excellent news!! We must cut the fat from our country...we need lean and mean business operations....and competent people running them! Go Malaysia!

Just for information .....pre-LME designation news......;)



London Metal Exchange coup likely for Johor Port



By C.S. TAN


JOHOR Port Bhd, which is linked to Tan Sri Syed Mokhtar Al-Bukhary, will be appointed a designated port by the London Metal Exchange (LME) soon, industry sources say.

Traders at the LME had been informed of this appointment, although it appeared Johor Port had yet to be told officially, they added.

A Johor Port official confirmed that the company had made an application to the LME to be a designated port. He added, however, that it was still awaiting the result of that application.

Johor Port operates the Pasir Gudang port. As a designated port, it will be a delivery and collection centre for metal traders from all over the world.

In this part of the world, there are currently only two countries with LME-designated ports, namely, Singapore and South Korea. Singapore has, by far, the larger of the two as it is a regional hub for the metal trade.

An appointment by the LME will be another coup for Syed Mokhtar. Earlier, the Port of Tanjung Pelepas (PTP) had managed to attract the Maersk and Evergreen shipping lines to use it as their principal port in this region. This drew a significant portion of the shipping business from the Port of Singapore.



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Tan Sri Syed Mokhtar Al-Bukhary




Besides his links with Johor Port, Syed Mokhtar also controls Malaysia Mining Corp Bhd, which holds a major stake in PTP.

If Pasir Gudang port is approved as a designated port, it will also draw business from the Singapore port by virtue of its lower costs, not least a cheaper currency.

Sources close to the group said Syed Mokhtar preferred to view Pasir Gudang port's bid as positioning for a slice of a growing cake, rather than taking away business from Singapore port.

This was a fair position to take, considering that Singapore port operator PSA reported an increase in throughput last year, despite the shift of Maersk and Evergreen to PTP, industry sources said. Normal competition in an expanding market is not mutually harmful, but a price war between the two ports will be.

The LME is the world's biggest exchange for non-ferrous metals. The metals traded on the exchange include aluminium, copper, lead, nickel, silver, tin and zinc.

Futures contracts are traded on the LME, and when the contracts mature, the physical metals have to be delivered to a designated port for collection by buyers.

Typically, shipments for delivery arrive in large volumes of 5,000 to 20,000 tonnes. These are carried on board bulk cargo ships.

A buyer taking collection will usually do so in small amounts of about 50 tonnes each, for just-in-time inventory management. These tonnages are shipped in containers in five-tonne loads.

These shipments will bring incremental business to Pasir Gudang port, a multi-purpose port with facilities for both bulk cargo and containers.

Much of the metals will be stored in warehouses in the port area before collection, and this will provide the port with additional revenue. “Pasir Gudang port will have been ready with warehouses to qualify as a designated port,” the sources said.

The LME said on its website that delivery points would be approved if they were considered safe, well managed, politically and economically stable, and not subject to corruption.

If Johor Port wins approval, it will be an endorsement of its management of Pasir Gudang port, and a display of its entrepreneurial edge in developing new avenues of business.

The sources expect many of the metal traders to continue using Singapore port – long familiar to them – as their regional hub, while others will shift their operations to Pasir Gudang port to save on logistics and warehousing costs.

Pasir Gudang port is well located to serve the increasing demand for metals, especially from China, one of the world's largest markets for commodities. The port offered many direct sailings to the Far East every week, the sources noted.

A sizeable port, it handled 750,000 TEUs (20-ft containers) last year. It is bigger than the ports of Bintulu, Kuantan and Penang.

Johor Port has kept a low profile, even though it has done well. It reported a net profit of RM83.6mil, or earnings per share of 25 sen, last year. It is also prudently managed and is debt-free.

“There's more than just PTP and Port of Singapore. There's also Pasir Gudang port,” the sources said.

it is a bad thing for me bcoz i lived in KLANG!! TOO MUCH LORRY ON THE ROAD.... can u imageined a lorry with more than 10 wheels and each wheel is taller than u!!sometime when i am driving i am so scared that my car will be hit by these giant container!!

Friday May 7, 11:05 AM
Asian Stock Focus:Analysts Bet On Johor Port's Prospects

By Joseph Edwin

Of DOW JONES NEWSWIRES

ADVERTISEMENT

KUALA LUMPUR (Dow Jones)--Shares of Malaysian ports, long considered defensive and unexciting, are now getting a second look amid a strong economic recovery, with analysts favoring Johor Port Bhd. (6416.KU) as a top pick in the sector.

Johor Port is expected to outperform its rivals and the broader market this year after becoming a London Metal Exchange-designated port in March. The stock, currently trading around 2.35 ringgit ($1=MYR3.80), is still fairly cheap, analysts say.

"We're positive on the company and we have a buy recommendation on the stock following its London Metal Exchange (LME) approval," said analyst Chris Ng with Kuala Lumpur-based brokerage firm OSK Securities.

Johor Port in the southern state of Johor is the first Malaysian port to obtain LME approval as a warehouse facility for international nonferrous metal traders, and one of just 32 in the world to do so. In Asia, the only other designated LME ports are Singapore and South Korea.

As the world's leading palm oil export facility, Johor Port clears over 3 million metric tons of palm oil annually. It is the country's leading general cargo port in terms of volume and one of the largest handlers of bulk, chemicals and petrochemicals.

Three analysts who spoke to Dow Jones Newswires all have a buy recommendation on the port operator's stock, with a 12-month target price of MYR3.30 to MYR3.50 - an upside of up to nearly 50% from its current level. More research houses are expected to resume coverage of the port sector as the outlook improves.

For the year to date, Johor Port rose about 19% this year, outperforming the key KLSE Composite Index's 6% gain. In comparison, other ports' shares haven't done as well: Bintulu Port Holdings Bhd. (5032.KU) added 3.1% so far this year while NCB Holdings Bhd. (5509.KU) shed 4.8%. Johor Port shares are trading at a forward price/earnings ratio of 8 times versus the sector's 11 times, said an analyst with a major brokerage firm in Kuala Lumpur.

Despite recent technical analysis indicating a significant short-term downside risk for Johor Port, with support placed at MYR2.15 to MYR2.18, analysts believe the company's steady fundamentals and outlook will shore up investor sentiment in the stock in the longer term.

In addition, they point out that Johor Port's stock could get a further boost sometime this year when the Malaysian government is expected to give the go-ahead for the port to raise its charges by as much as 25%.

"We believe there is a strong chance (for higher port charges) given that the port has not had a tariff revision since the group's inception (in 1997)," said an analyst with a mid-sized Kuala Lumpur based brokerage firm.

Johor Port was established in 1997 to prevent Malaysia from becoming over-reliant on Singapore's port services. In 1995, Seaport Terminal (Johor) Sdn. Bhd. acquired a 52% stake in Johor Port. Privately held Seaport is controlled by influential local businessman Syed Mokhtar Al Bukhary, who also controls Port of Tanjung Pelepas through his 25% stake in Malaysia Mining Corp. (2194.KU).

Devt Plans Augur Well For Johor Port's Growth

Johor Port's 2004 net profit is expected to grow 34% to MYR112 million, according to the average forecast of the three analysts, and this is before factoring in likely higher port charges. Last year, its net profit rose around 12% to MYR83.6 million.

"We continue to like the stock for its rich hinterland (surrounding industrial land area), stable client base and alluring valuations," Mayban Securities said in a recent research report, citing a buy recommendation.

Johor Port's annual revenue of about MYR312 million comes largely from its hinterland, with the port handling general cargo, dry cargo, liquid cargo and containers.

The free trade zone of 1,000 acres around Johor Port has been 90% developed, but there are still 7,000 acres available for development in the bustling Pasir Gudang area. To date, over 250 local and foreign companies have operations here.

These include heavy industrial, petrochemical, oil and cargo firms. Gearbulk Pool Ltd., a new customer and one of the world's largest bulk operators, late last year relocated its port operations to Johor state from neighboring rival Singapore.

Johor Port is also close to completing its cargo transfer system for dangerous liquid cargo, analysts note.

"The impact from this should be positive for Johor Port's bottom line, as the prevailing tariffs are 50% higher for dangerous liquid cargo such as some petroleum products," said another analyst at a Kuala Lumpur-based securities firm.

Looking ahead, Johor Port is expected to benefit from key shareholder Syed Mokhtar's plan to turn the southernmost state into a transportation hub, linking sea, air and rail operations.

Tanjung Pelepas port isn't considered a direct rival to Johor Port because the former is largely a container port while the latter focuses more on general cargo and palm oil, so whatever competition between the two is expected to be minimal, analysts say. Moreover, the Malaysian government's plans to turn Tanjung Pelepas port into a regional port to rival Singapore will boost business overall and benefit Johor Port as well.

Last year, Johor state attracted a total MYR1.96 billion in foreign direct investments comprising 219 projects, and analysts expect this figure to continue rising. As the level of investment grows, so will the need for port facilities, they say.

"This augur's well for Johor Port's future growth," said the analyst with the mid-sized local brokerage firm.

Johor Port is poised to ride Malaysia's contined economic and exports growth. Bank Negara Malaysia, the central bank, last month raised its 2004 economic growth forecast for the country to 6.0%-6.5%, above 2003's 5.2% recorded growth. Malaysia's exports are set to rise 15% to MYR459 billion in 2004, well above the 8% increase in 2003, according to private-sector economists.

Rivalry among ports set to continue


By Sidek Kamiso

WHEN it comes to transportation service, the rivalry between Malaysia and Singapore had never been apparent, until recently.

For many years, being the largest entrepot in the region, Singapore's position as a port city looked formidable. It appeared that whatever other regional ports could offer, Singapore could offer better because of its enviable location as the transhipment hub in the region.

When businessman Tan Sri Syed Mokhtar Albukhary opened the Port of Tanjung Pelepas (PTP) in 2000, the port was not even considered a threat to Singapore.

It was not until the world's largest shipping company Maersk Seland made the relatively unknown port as its port of call in the region, that Singapore started to take notice.

Maersk not only changed its transhipment hub from Singapore to PTP; it also moved its entire operations there, taking with it nearly 11% of cargo throughput handled by the Port of Singapore Authority (PSA).

The PTP?s grand plan became clearer when it managed to lure Taiwanese liner, Evergreen, to become the second major name to call at PTP. The two major clients represent 15% of PSA's annual throughput and their departure was noticeable and PTP started to pose a serious challenge to Singapore's position.

Besides shipping liners, other operations that depend on port services have also dropped anchors near PTP. Among them are BMW and Scania, which had set up their respective regional centres for spare parts distribution.

Having its business threatened almost overnight, Singapore retaliated with discounts and rebates to shipowners to match the lower fees offered by PTP.

PTP continues to make its mark as the alternative transhipment hub to Singapore. For the first six months this year, PTP saw its throughput increased by 25.3% to 2.1 million TEUs (20-foot equivalent units) from 1.6 million in the previous corresponding period.

In the future, the situation could change further as PTP strives to make the port more attractive by marketing it as an air and sea cargo hub, linking the port with Senai Airport nearby.

A potential threat to both Singapore and PTP is the plan by Thailand to open a canal on the narrowest part of the Kra land bridge connecting Thailand and Malaysia.

If this plan materialises, not only Singapore would feel the heat, PTP's position could also be threatened as ships may find it faster to bypass the two ports to sail to other parts of Asia through the canal.

Thestar.

Strong growth at Port Klang, PTP

By Doreen Leong


Port Klang and Port of Tanjung Pelepas (PTP) throughput is expected to grow potentially by 8% to 29% for a combined 9.7 million twenty foot-equivalent units (TEUs) on the back of increased economic activities, says Transport Minister Datuk Seri Chan Kong Choy.

Riding on the first half (1H) growth momentum, he expected Port Klang’s throughput this year to increase to 5.2 million TEUs from 4.8 million TEUs last year, while PTP would handle between four million and 4.5 million TEUs against 3.5 million TEUs in 2003.

Speaking to reporters at a briefing on July 14, Chan said throughput at Malaysian ports for the first six months registered a growth of 16.6% to 5.69 million TEUs from 4.88 million TEUs in the previous corresponding period.

He attributed the growth mainly to the increase in manufacturing activities in the country and more calls at the ports, mainly in Port Klang and PTP.

PTP posted its highest ever first-half year throughput, handling 2.01 million TEUs, an increase of 25.3% from 1.60 million TEUs in the same period last year. Vessels calling at PTP rose 5.3% to 1,584 in 1H 2004 compared with 1,504 in 1H 2003.

PTP had said with cargo volumes rising on major trade routes, in particular Asia-Europe, it had experienced strong growth in volumes as it continued to retain its premier position as a transshipment port.

Similarly, for 1H 2004, Port Klang’s throughput increased by 11% to 2.61 million TEUs against 2.35 million TEUs in 1H 2003. “We are happy with the growth of these Malaysian ports in handling TEUs, but, we are working hard to make sure Malaysian ports are still competitive in terms of tariffs, facilities and productivity,” Chan said.

He expected Port Klang and PTP to maintain their positions as the 12th and 16th largest ports in the world. Chan said the government was trying to lure more main line operators to its ports and encourage companies to ship their boxes produced in Malaysia via local ports.

“There are still leakages from some states in Malaysia, feedering to non-Malaysian ports to ship to other countries such as Europe, China and Japan,” Chan said.

He said the government was stepping up efforts to encourage value-added industries to be set up in the vicinity of the ports. The establishment of Pulau Indah free trade zone was part of government’s drive to attract those industries, he added.

He said it would definitely increase the number of boxes, either import of raw materials or export of manufactured goods.

STAR LEO at Port of Fremantle. She was cruising in Australia for 3 months last year. Here are some pics on her voyage to Melbourne from Fremantle.

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WaveMaster Aims To Build New Yachts To Expand Business


By Yong Soo Heong

LANGKAWI, July 29 (Bernama) -- WaveMaster Langkawi Yacht Centre (WMLYC), a local company which started off in ship-repairing, servicing and refitting here three years ago, has set its sights on building new luxury yachts, says a company official.

"We are now discussing with a few interested parties to build super yachts for them," said Yii Chu Lik, the company's senior manager (sales and commercial).

WMLYC is one of the exhibitors at the three-day Global 2004 Langkawi International Dialogue business, investment and trade exhibition at the Berjaya Langkawi Beach & Spa Resort which opens Thursday.

Yii said the company aimed to move up the value chain by building new vessels after having built up its repairing and servicing expertise over the years.

For instance, it has been annually servicing more than 30 ferry boats that ply between Langkawi and Penang and Phuket.

Yii said Langkawi, with its duty-free status, had aided in WMLYC's development, both in terms of cheaper imported materials and the increasing flow of yachters to this resort island in view of its excellent berthing facilities.

"Langkawi has become a well-known stop for yachters because of the many marinas available and that in a way has helped in our company's operations," he said.

Yii said the natural deep water at the company's yard at Tanjung Lembong, about 15 km from Kuah town, also ensured easy access for all yachts and boats sent in for repairs and servicing.

Langkawi also has an adequate pool of skilled workers like welders and carpenters needed for the company's operations, he said.

"If we can't get them from Langkawi, it's also relatively easy for us to get them from other parts of the country to come here to work," he said, adding that was partly due to the island's attractiveness as a place to work and reside.

Yii, who hails from Sibu, Sarawak, said the company was also negotiating to build tugboats for the non-leisure sector.

The company has two shipbuilding halls for ship-refitting, repairing, painting and maintenance at its yard in Tanjung Lembong, measuring nine hectares in all.

WMLYC's origins came from 18 years of shipbuilding experience at WaveMaster International in Australia. To date, WMLYC, which has about 90 employees, had repaired and serviced about 180 vessels.

Its services include servicing and repairing electric control and distribution systems, installing and testing shipboard electrical components, switchboard, cables and wiring, overhauls, repairing and testing all types of combustion control systems, main engines, generators, hydraulic systems and auxiliary machines.

Yii said the company also has an in-house design team of naval architects and engineers to design for new vessels, conversion and major overhauls.

The company also has a larger design team in the WaveMaster International office in Australia acting as back-up.

Yii said WMLYC was now undertaking the conversion of a 34-metre passenger ferry into a luxury styled 37-metre dinner and island cruise vessel where the comfortable and stylish interior would delight the guests as they enjoy fine dining while cruising around Langkawi and nearby Thailand.

Other services by WMLYC include yacht management, yacht brokerage and yacht charters or cruises.

Elaborating on yacht management, Yii said WMLYC would protect the value of the yachts through maintenance, budgeting and financial control.

"The owners are provided with management reports, hence keeping them informed at all times of their vessels' status," he explained.

According to the Malaysian Industry-Government Group for High-Technology (MiGHT), the co-organiser of Global 2004 LID, it is currently working on a blueprint on the national maritime industry.

The blueprint will further the government's initiatives towards making Malaysia a "maritime nation" to catapult the country towards the forefront of the global maritime industry.

This is because the skills needed for ship-repairing and shipbuilding transcend several industries and therefore the maritime industry has the potential for "knock-on" industrial effects.

-- BERNAMA

Dian Kreatif Wants To Be Leading Yacht Maker In S.E. Asia


MALACCA, Aug 4 (Bernama) -- Dian Kreatif Sdn Bhd, a Malaysian-German joint venture here, aims to be the leading composite-based yacht maker in South East Asia, its director, Habibur Rahman Ibrahim, said Wednesday.

The company, which had produced various sizes of yachts specially meant for international level races, had managed to penetrate markets in Hong Kong, Australia, France, the United States and a few other European countries, he said

"We have expertise, both inside and outside the country. They are also yachtsmen themselves and this enables us to make yachts that are among the best," he told reporters who were taken on a factory tour at Batu Berendam here.

The company also uses the services of international yacht designer, Juan Kouyoumdjian.

Besides making yachts, Dian Kreatif, which was set up in 1997 with 80 percent of its equity owned by bumiputeras and the balance by Hannes Waimer of Germany, also makes domes from composite materials.

Among the domes that had been built by the company are that of the Prime Minister's official residence in Putrajaya, Putrajaya Mosque, Federal Territory Mosque and Al Bukhary Mosque in Alor Setar.

The company's domes are also used for the Conference Palace Hotel Complex now under construction in Abu Dhabi involving 127 pieces in all.

Habibur Rahman said since the company ventured into making yachts using the brandname "DK Yachts" in 1999, a total of 60 yachts had been manufactured.

Some of them had even made a name for themselves in international level yacht races.

Habibur said yachts built by the company had won three races at the Thai King's Cup (Thailand), Hamble Winter Series (the United Kingdom) and the Raja Muda Regatta (Malaysia).

The company is now constructing a RM20 million yacht for a businessman from Hong Kong, Frank Pong.

Named "Maiden Hong Kong", it is approximately 35 metres long, 7.5 metres wide, weighs 35 tonnes with a mast that is 40 metres in height. It has a maximum speed of 38 knots.

Habibur said the yacht was being built from hi-tech carbon fibre and was the largest ever built using composite materials in this region.

Construction began in 2002 and is expected to be completed by October for Pong to compete in the Hong Kong-Vietnam race at the end of this year. -- BERNAMA

MISC To Up LNG Tanker Fleet To 28 By 2008


KUALA LUMPUR, Aug 12 (Bernama) -- Malaysia International Shipping Corporation Bhd (MISC) will up its fleet of liquefied natural gas (LNG) tankers to 28 from 17 by 2008.

"We have new tankers on order and some in the process of being constructed," chairman Tan Sri Mohd Hassan Marican told a press conference after the company's annual general meeting here Thursday.

He said the new tankers were meant for specific charters and not speculative trading. These vessels were also not exclusively for Petronas but also for third parties.

As to whether the expanded fleet would increase its current global market share of 10 percent, he said the national shipping company would still maintain its position as the largest owner and operator of LNG tankers in the world.

Mohd Hassan, who is also Petronas president and chief executive officer, said the company had made a breakthrough last year when it was able to lease out its tankers to non-Petronas business.

He said MISC had strategised its line of business and decided to focus on the long-haul, an area which would give it the best value.

"It is that part of the business that is very competitive," he said.

-- BERNAMA

MISC's profit soars to RM924.584 mln

KUALA LUMPUR Aug 12 - Malaysia International Shipping Corporation Bhd (MISC) recorded a one-fold increase in its pre-tax profit of RM924.584 million for the first quarter ended June 30, 2004, from RM462.004 million in the same quarter of 2003.

The profit was achieved over a bigger revenue of RM2.318 billion, up 56.8 percent from RM1.478 billion previously.

The group's profit includes an exceptional gain of RM320.6 million, arising from the disposal of 15 handysize bulk carriers and two container vessels, the company said in a statement here Thursday.

It said that the significant improvement was the result of better performance in the main shipping segments following the higher freight rates, improved operating efficiency as well as the inclusion of the operating results of American Eagle Tankers Inc Ltd (AET).

EAGLE VERMONT....AMONG THE LARGEST TANKER SHIP IN THE WORLD.
OWNED by MISC

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Jabatan Laut Malaysia

http://www.marine.gov.my/

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Soaring oil prices blessing for MISC

By Sidek Kamiso


MALAYSIA International Shipping Corp Bhd (MISC) is likely to be a prime beneficiary of high oil prices, which will further boost tanker rates, already reaching an eight-month high.

Its increasing involvement in the transportation of liquefied natural gas (LNG), which enjoys better rates, is also expected to have positive impact on the group's revenue.

In fact, the purchase of American Eagle Tankers (AET) has significantly boosted its capacity to transport crude oil and enable MISC to capitalise on higher tanker rates.

“The company is now less reliant on revenue from its container division although that has turned around,'' an official told StarBiz.

The main capacity now is to cater to the transport of petroleum.

As at March 31 this year, MISC has a total of 46 petroleum tankers with total capacity of 4.6 million dead-weight tonnes (dwt).

The company also operates 36 bulk carriers with total capacity of 1.6 million dwt, 17 LNG tankers (one million dwt), 24 containerships (537,009 dwt) and 15 chemical tankers (395,545dwt).

MISC's position in the LNG business will be further improved in view of its plan to purchase an additional 28 LNG vessels.

Crude oil prices hit a record high of US$50 per barrel last week, following disruption in supply.

Recent reports also indicated increased demand from the US and China.

“Demand for crude oil transportation has pushed tanker rates to an eight-month high,” said Chris Eng, senior analyst at OSK Securities. Some very large crude carriers (VLCCs) could fetch as much as US$100,000 a day, he added.

The higher rates are reflected in the Baltic Dirty Tanker Index, which tracks rates charged by tankers carrying crude oil (see chart).

The concern that higher rates would be offset by higher bunker fuel costs is, apparently, unfounded.

This is because the costs would not be borne by MISC but passed on to the charterer.

The same situation also applies to MISC LNG's operations, which are run on a time charter basis, meaning that operations and fuel costs are borne by the charterer.

In this case, it was its parent company, Petroliam Nasional Bhd, which had chartered MISC LNG ships for 15-20 years, said OSK's Eng.

In view of this, MISC's valuation has become very attractive.

A recent report by a foreign brokerage also found MISC attractive, given its increasing involvement in LNG, and its position currently as the world's largest single owner of an LNG fleet.

“MISC's focus on LNG, which gives better margins, and that sets it apart from other shipping companies that concentrate on container shipping,” the analyst with the foreign brokerage said.

Firm shipping rates to lift MISC 2Q profit
By Syed Azman


Malaysia International Shipping Corp (MISC), the world's largest carrier of liquefied natural gas (LNG), should post a 42% rise in quarterly profit next week on the back of strong shipping rates and LNG demand.

Freight rates have surged on rising global trade, particularly to and from China, and a tight supply of ships. Tanker rates have also soared as oil exporters boost output to maximise profits on high crude prices, increasing demand for transport.

Shares in MISC, Malaysia's fourth-biggest listed firm, hit a record high of 14 ringgit on Nov 3. The stock rose 7.6% in July-September versus a 3.7% gain in the main Composite Index.

"The market has been re-rating the stock. MISC earnings continue to impress people, and I will not be surprised if the stock continues to climb," said Ngu Chie Kieng, research head at TA Securities.

Analysts said current strong tanker and liner rates would boost MISC's earnings in the year to March 2005. But profits could dip in fiscal 2006 as rates soften, though this may be partially offset by increasing LNG capacity. MISC, a unit of state oil and gas firm Petronas, is expected to increase full-year net profit by 15% to 2.63 billion ringgit from 2.29 billion, according to Reuters Estimates.

The shipper, valued at nearly US$7 billion (RM26.6 billion), is expected to report next Wednesday net profit of 700 million ringgit in its fiscal second quarter to Sept 30, according to three analysts.

Like other Asian shippers, MISC is enjoying a surge in profits flowing from increased global trade with China and higher freight rates, but it is unlikely to match its first-quarter profit of 920 million ringgit, analysts said.

Belgium's Exmar and Norway's Golar LNG are among the other major LNG carriers in the region.

"The numbers will not be as good as those of the first quarter, but they will still be quite strong. Overall shipping rates are still quite high," said Ngu.

First-quarter profits were boosted by the sale of 17 bulk vessels.

MISC is looking to sell another 32 vessels, hoping to raise up to US$700 million, as it focusses on its energy business. The sale of these vessels will leave MISC's bulk division with only two carriers.

The shipper, whose tankers account for just over a tenth of total world LNG capacity, plans to raise its LNG tanker fleet to 29 by end-2008, increasing capacity by 80% to 3.6 million cubic metres.

Most of the LNG vessels are fixed for long-term charter contracts, providing the group with strong and stable earnings.

MISC, which operates 18 tankers with a combined capacity of 2.0 million cubic metres, has also gained from increased energy demand, driven by energy-guzzling China and India, and falling gas output in the United States and Europe.

China and the United States are forecast to import a total of 45 million tonnes of LNG by 2010, driving global demand to grow 8% a year, International Gas Union said last month.

MISC also has a fleet of 50 crude oil tankers including those owned by American Eagle Tankers, which MISC bought last year from Singapore's Neptune Orient Lines Ltd. It has 8 more very large crude carriers (VLCCs) on order to add to its current fleet of 5.

LNG and petroleum businesses account for about 70% of MISC's revenue. -- Reuters

Okaylah this is about defence but still maritime :D


Submariners to train in France


KUALA LUMPUR: The first batch of submariners will begin their training in France next year ahead of the delivery of Malaysia's two French-built submarines in 2008.

Navy chief Admiral Datuk Seri Anwar Md Nor visited the training centre in Brest, in the west coast of France on Oct 27, according to a statement received from the Malaysian Embassy in Paris.

Nineteen navy personnel are overseeing the construction of the two Scorpene-class submarines in Cherbourg, the statement said.

Admiral Anwar, accompanied by Malaysian Ambassador to France Datuk Hamidah Yusoff, also visited the French naval base in Brest.

He also attended the launch of Euronaval 2004 Fair, a leading international trade show for naval defence and equipment. – Bernama

Halim Mazmin to sell bulker for RM142m

Halim Mazmin Bhd via its 51% subsidiary Polaris Shipping Sdn Bhd is selling a capsize bulk carrier, Meridian Polaris, to Springwood Shipping Company Ltd of Malta for US$37.38 million (RM142.03 million) cash, the company said late Nov 17.

Halim Mazmin’s 51% share of the proceeds will amount to RM48.63 million after settlement of borrowings related to Meridian Polaris. Polaris Shipping signed a memorandum of agreement with Springwood on Nov 15.

The company said the disposal of the 149,475 deadweight tonnes bulker currently chartered to Nippon Yusen Kaisha would result in a gain of RM33.20 million to the group. Earnings per share will increase by 11 sen per 50 sen share if the deal is completed by April 29, 2005.

Halim Mazmin said the proceeds would be used for the group’s shipping business and fleet expansion.

Polaris Shipping acquired Meridian Polaris, built by China Shipbuilding Corporation of Taiwan, for US$23 million in October 2000. The audited net book value of the 11-year-old vessel was RM77.82 million as at Dec 31, 2003.

Howe Robinson Marine Evaluations (a division of Howe Robinson & Co Ltd), a shipbroker, had on Nov 2 valued the vessel at US$37 million.

Govt Needs To Come Up With An Integrated Transport Policy

KUALA LUMPUR, Nov 22 (Bernama) -- The government needs to put forward a national transportation logistics plan which clearly spells out specific objectives and targets taking into account the demand for a fully integrated transport system and infrastructure, the Malaysian Shipowners Association (MASA) said Monday.

Its chairman Datuk Dr Nik Mohd Zin said the plan or policy should be used to foster the development of the transport infrastructure, among other things, in an integrated manner especially with the advent of globalisation and liberalisation.

He said the policy was needed to be drafted as soon as possible for the following three reasons:

*1) The liberalisation of global trade that demands lowering transport costs for Malaysia's manufactured goods to compete globally;

*2) The need to respond to the changing requirements of the demand and user expectation, including as reflected in the emergence of global manufacturing networking; and

*3) The need to respond to the changing key functionalities of transportation which now focused beyond the role of moving cargo from one point to another.

"Such a policy approach must be consistent to meet the expanding needs of freight transportation of the country, while being environmentally and economically sustainable.

"It may come as a surprise but it is important to note that the development of transportation infrastructure in Malaysia has never been guided by a single coordinated national transport development policy," he said in a paper entitled "Creating A Sustainable Integrated Transport Policy" at the National Multimodal Transport Conference 2004, here today.

He said various attempts had been made to adopt or frame a national transport policy, but todate the authorities had yet to have a single national transport policy.

He said the country's success in developing and providing excellent transport infrastructure had been due to a combination of factors including strong support by the government.

"Through measures and means provided by the government in the form of attractive concession agreements, sovereign guarantees, preferred interest rates, moratoriums, soft loans and grants, the private sector came to be actively involved in the development of roads, ports and shipping," he said.

Dr Nik said while the development of the transportation chain was at a satisfactory level presently, the transportation industry, in particular the maritime transportation industry, should not be left to its own device.

"We need to develop, at least an outline policy framework to foster the development of the maritime industry in the country.

"This will offer scope and strategies for the expansion of the merchant fleet as well as look into the manpower requirements both for shore-based and floating staff for the industry and also address issues relating to shipbuilding and repairing capacity, bunkering and ship supplies," he added.

He strongly believed that the absence of a structure for the coordination of the strategic planning for the transport infrastructure could lead to mismatches, duplication of resources and sub-optimal utilisation of resources and operational inefficiencies.

-- BERNAMA

MISC to buy 3 crude oil carriers for US$100m
Jose Barrock


MALAYSIA International Shipping Corp Bhd (MISC), South-East Asia’s largest shipping concern, is strongly believed to have placed orders for three very large crude carriers (VLCCs), influential ship brokers based in Singapore, who spoke on condition of anonymity.

Mail Money was told MISC placed the US$100 million (RM380 million) per ship order with a Japanese ship- yard. It is strongly believed the yard is owned by Univer- sal Shipbuilding Corp, a venture between NKK Corp and Hitachi Zosen Corp.

Details such as the delivery of the ships and how MISC intends to finance the purchase are still murky.

Universal Shipbuilding was chosen because of its close relationship with MISC. The relationship was streng- thened after the national carrier gave a mandate to the ship builder for two VLCCs.

Last year, MISC had placed the order for the two VLCCs at US$60 million (RM228 million) each.

Increasing its VLCC fleet is believed to be part of MISC’s plan to focus on energy carriage, as much of its earnings comes from the carriage of liquefied natural gas for its parent, Petroliam Nasional Bhd.

Ship brokers say MISC may take a short-term syndicated loan, but ultimately, the carrier may use proceeds from a planned sale of as many as 32 bulker vessels for an estimated US$750 million (RM2.85 billion) to finance the purchase.

MISC vessels sold for RM2.8b to Greek buyer
By Jimmy Yeow


Malaysia International Shipping Corporation Bhd (MISC) is disposing of its entire fleet of 32 bulk vessels en bloc to Greek shipping firm First Financial Corporation for US$740 million (RM2.81 billion) cash.

Announcing the deal on Dec 2, MISC said the sale, via a closed tender, would result in a gain of US$440 million (RM1.67 billion) over the aggregate net book value.

MISC said delivery of the vessels was expected to be completed by March 31, 2005.

MISC closed 10 sen higher at RM14.50, its foreign tranche was 20 sen up at RM14.60, and its covered warrants were unchanged at RM6.05.

Shipping players said the additional bulkers would boost First Financial Corporation's fleet to 64. The MISC fleet of nine panamax, nine handymax and 14 handysize bulkers will be added to its existing fleet of nine handymaxes, 13 capesizes and nine reefers.

Earlier reports said First Financial Corporation's holding company the Restis Group, New York-listed General Maritime Corp (Genmar) and Islamic Republic of Iran Shipping Lines (IRISL) were the three candidates shortlisted for the deal.

In October, MISC said it received several bids from international ship owners for its fleet of bulkships, which industry sources believed was worth between RM2.85 billion and RM3.42 billion.

The bidders included Norwegian and Greek ship owners. MISC had appointed several international banking groups, including HSBC and Citibank, to handle the tender for the disposal. The tender had also attracted interest from Malaysian Bulk Carriers Bhd.

MISC managing director and chief executive officer Datuk Shamsul Azhar Abbas had then said the disposal of the ships, some of which are about 15 years old, was “part of MISC’s plan to concentrate on energy shipping (liquefied natural gas, crude oil and petroleum product).

Bigger fleet
By Jimmy Yeow


Malaysian Merchant Marine Bhd (MMM) is undertaking a fleet expansion programme by acquiring several types of vessels for over RM90 million to meet the growing domestic and regional demand for its services over the next few months.

It has already made inroads into the Philippines and the Middle-East, which is expected to enhance its performance. In the first quarter of next year, it will operate bunker trading and transport of crude oil through a joint venture with an Iraqi partner.

On the fleet expansion, its chief operating officer Capt Panichellvam Ratnam says these additional ships include two petroleum tankers of 5,000-7,000 deadweight tonnes (dwt), a roll-on, roll-off vehicle carrier (ro-ro) and a number of bulkers.

MMM currently has a fleet of 13 vessels comprising four ro-ro (500 units of vehicle each), six tankers (4,000-7,000dwt each) and three bulkships including two with 7,000dwt, and a capesize of 140,000dwt.

He tells FinancialDaily that the company has outlined plans to increase its shipping business through its 40% associate Manila Merchant Marine Shipping Corp where it chartered one of its 4,000dwt oil/chemical tankers “Dayton”. “Petron, the Philippines largest refining and marketing company with over 40% of the domestic market share, requires 25 tankers over the next five years,” he adds.

Capt Panichellvam says MMM is also exploring opportunities to ship crude petroleum to the Philippines for the oil majors apart from shipment of refined products.

In the Middle-East, he says MMM through its 50:50 joint venture (JV) with the Iraqi Oil Tankers Company will operate bunker trading and transport of crude oil via the Dubai-based Iraqi Malaysia Oil Tankers Company, in the first quarter next year. “It will provide a new and significant source of revenue and earnings for MMM. We expect the security situation in Iraq to improve soon,” he says.

In September, MMM announced that the JV would operate from Umm Qasr in Basra and serve all oil terminals and ports in Iraq as well as the Arabian Gulf. It will also set up ship repair facilities and marine supply centres in Iraq and the neighbouring countries.

MMM will spearhead the operational and commercial activities of the JV, which offer immense international business opportunities and serves as a platform for the Malaysian shipping company’s fleet expansion plans especially for tankers.

This will lead to the acquisitions of very large crude carriers (VLCCs), Suezmaxes, Aframaxes and Panamaxes for the transport of crude oil and other oil products and by-products.

MMM had committed two of its tankers for bareboat charter to the JV company for the bunker business operations. It would generate income from the sale of bunkers and the chartering of the two tankers.

Capt Panichellvam says MMM is also looking for another ro-ro vessel of 500-1,000 unit capacity costing RM30 million and RM40 million in anticipation of the Asean Free Trade Area (Afta) next year.

On the bulk trade, he says MMM had also tendered for the Tenaga Nasional Bhd’s coal shipment contract. Depending on the load, he says MMM will require two Panamax-size 75,000dwt bulker to ship one million tonnes of coal annually. Malaysia’s coal requirement for power generation is expected to reach 20 million tonnes by 2010, he adds.

Meanwhile, MMM chief financial officer Tan Gek Choon says MMM gearing of 1.18 times as at Aug 31, 2004 is one of the lowest among the shipping companies.

“We will maintain our gearing at 1.2 to 1.3 times even after our fleet expansion,” she says.

MMM undertook a fund-raising exercise recently involving a renounceable rights issue of up to 67.35 million together with up to 13.47 million free warrants, and proposed renounceable rights issue of up to 113.36 million Islamic Preference Shares (IPS) together with up to 45.34 million free warrants and 56.68 million free IPS warrants.

“Earnings prospects for the current financial year ending Aug 31, 2005 will be better than FY2004’s RM10.94 million net profit and RM119.54 million revenue as we have captured high charter rates and only four vessels are due for dry-docking compared with seven previously,” Tan says.

Expansion of fleet on track, says MBC


MALAYSIAN Bulk Carrier Bhd (MBC) may have lost a keenly-fought bid to purchase 32 dry bulk cargo ships that were put on for sale by Malaysia International Shipping Corp Bhd (MISC) but it is on track with its expansion plans.

The acquisition of the fleet of 32 vessels could have fast-tracked MBC into a leading bulk cargo shipping line in the region. But the unsuccessful attempt is unlikely to dampen MBC on its fleet expansion programme.

MBC, which has emerged as Malaysia’s newest flag-ship, has strong ambitions to focus its resources on dry bulk cargo market, which it says has been paying off the firm handsomely.

The shipping line in the Robert Kuok’s stable of companies, riding on a wave of a sterling performance, recently placed orders for four product tankers at a cost of US$130 million (US$1 = RM3.80).

The four 35,000 dead weight tonnage ships will be built at Dalian Shipyard and are expected to be delivered in 2006 and 2007.

MBC, which reported an unprecedented increase of 108 per cent in its profit totalling RM196 million for the first nine months of this year on the back of RM276 million turnover (comparative period of RM146.04 million), was among the four serious contenders for the sale of MISC ships which attracted bids from scores of shipping lines and equity fund managers.

MISC sold the vessels for a cash totalling US$740 million to First Financial Corp, a holding company for Restis group, which has 32 vessels in its fleet prior to the bid. The sale of the vessels resulted in a gain of US$440 million over the aggregate net book value of the ships. — PortsWorld

MMM To Start Marine Transportation Operations In Iraq Next Year

KUALA LUMPUR, Dec 14 (Bernama) -- The volatile Iraq will be the next port of call for the Malaysian Merchant Marine Bhd (MMM) which plans to begin its marine transportation operations in the Gulf state in March, 2005.

The company's managing director, Shahrazi Sha'ari said the company had signed an agreement with its counterparts early this year and was waiting for the Iraqi Oil Ministry's approval.

"It will be a long term agreement for about eight years and we are not doing business the traditional way. We will enter into partnership with the Iraqis," Shahrazi, who is also the chief executive officer, told reporters after MMM's annual general meeting here Tuesday.

MMM had signed an agreement with the Iraqi Oil Tankers Company to set up a joint venture company known as Iraqi Malaysia Oil Tankers Company in Dubai, United Arab Emirates.

"MMM will provide bunker trading and transport crude oil to all the four ports in Iraq and probably to other Gulf states," he added.

Besides, Iraq, the company had expanded its business to the Philippines, forming another joint venture with the Manila Merchant Marine Shipping Corporation.

To beef up its existing fleet of 13 vessels for cargo transportation, MMM plans to inject RM100 million to purchase another 20 tankers.

The company proposes to raise funds by issuing up to 67,355,000 new ordinary shares, 113,357,390 new Islamic preference shares, proposed bonus issue up to 6,735,500 bonus shares.

"We expect to raise RM90 million and plan to spend about RM70 million to purchase vessels," he added.

The company posted a slightly higher revenue of RM119.544 million this year compared to RM104.723 million in 2003.

Its profit after taxation rose to RM10.896 million from RM10.134 million previously.

-- BERNAMA

Abdullah Commends Westport's Impressive 10-Year Report Card


PORT KLANG, Dec 14 (Bernama) -- Datuk Seri Abdullah Ahmad Badawi has given the thumbs-up to Westport's "report card," saying its progress report presented by its executive chairman, Tan Sri G. Gnanalingam was reflective of its sterling success since its inception a decade ago and spoke well of Malaysia's standing in global port operations.

The Prime Minister said Gnanalingam's "unusual way of presenting the report card" nevertheless alluded somewhat to the very points he had raised as his agenda for the nation when he took office as prime minister.

They included the need for Malaysia's first class facilities to go along with first class mentality, a call which Westport had heeded to remarkably having helped Port Klang to emerge as the 12th busiest port in the world last year.

The port's container had also grown every year since its inception from 20,000 container boxes in 1996 to 2.6 million boxes Tuesday.

Abdullah said this in his speech in conjunction with Westport's 10th anniversary celebrations before which Gnanalingam presented Westport "report card" along with a slide presentation.

Gnanalingam said Westport had adhered closely to Abdullah's credo, whereby by implementing first class processes, the port at Pulau Indah here was now among the top five in terms of world port productivity.

"Ten years ago, we were a greenfield terminal. Today, we are a world class port generating RM500 million in revenue," he said in his presentation.

Gnanalingam said Westport had also fulfilled Abdullah's call for the country to seek new sources of economic growth as Port Klang, "had within 10 years, had grown handling 1.5 million twenty-equivalent-units (TEUs) to 5.2 million TEUs."

"We have established ourselves as a regional hub facilitating world trade via Malaysian corridors and direct trade with our South-east Asian neighbours," he said.

Westport contributes one-half of Port Klang's operations, with the other being public-listed North Port.

Gnanalingam, who is also the chairman of the Federation of Malaysian Port Operators, said Westport's container productivity has increased from moving 20 container boxes per hour to 30 boxes per hour.

"We have set ourselves a consistent target of 35 boxes per hour for next year," he said.

But he said Westport's achievement was not amid a bed of roses for it was "baptised" at a time when there was one crisis after another, ranging from the 1997 Asian financial crisis, which brought trade almost to a standstill, the currency crisis, the Sept 11 terrorist attacks, severe acute respiratory syndrome (SARS) epidemic and the Avian Bird Flu.

Turning to the port's staff strength, he said from 20 in 1994, Westport now employs 2,200 people.

"With training and motivation, they are among the best in the world."

This was clearly evident when quay crane operator Azmi Ashaari broke the world record for moving boxes with 72 boxes moved within an hour.

Azmi received an award of commendation from Abdullah after the speech presentation.

"We have also demonstrated our prowess in increasing vessel productivity over the years. The last feat was 364 boxes moved with six cranes which is tantamount to 60 moves per hour," Gnanalingam said.

As for Vision 2020, he said: "We believe that we have achieved Vision 2020 in terms of infrastructure, a world class port in terms of productivity and by 2010, we will be paying our staff a minimum wage of RM2,020 from RM1,500 now."

PM Wants M'sian Ports To Fully Exploit Potential

PORT KLANG, Dec 14 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi has called Malaysian ports to fully exploit their potential to be leaders in transportation and logistics and serve as mega-transhipment hubs.

Towards this end, he called on all players in the port and logistic industries to improve their national multimodal linkages and integration.

"All stakeholders involved have to work towards removing obstacles and inefficiency and to ensure seamless and rapid transportation of goods and provision of services," he said at Westport's 10th anniversary celebrations here Tuesday.

Abdullah also said that vision and planning for the future of Malaysia's role as a regional hub must necessarily be flexible and be able to adapt to uncertainties as well as take advantage of opportunities beyond the horizon.

"I believe that the country's transportation and logistic industries should be broadly and comprehensively defined and therefore be able to promote a wave of activities to augment this industry further."

He said: "This approach to the industry is indispensable if we are to increase our competitiveness, especially in light of the growth and extension of China and India."

The prime minister said Malaysian port operators as well as stakeholders across the transportation and logistics industries have to work together to ensure that Malaysia increased its overall competitiveness.

The way forward for these industries should be chartered with a broader overview of potential global future trends and the development of value adding complimentary services, said Abdullah, who is also the Finance Minister.

The prime minister said that historically speaking, the region of present day Malaysia was already internationally known more than 600 years ago as a locus of shipping lines and sea trade and that the country's continued push towards becoming a centre of trade was therefore part of a long standing tradition.

He said globalisation had and would continue to directly amplify shipping volume across the world.

"We have to ensure that Malaysian ports take a strong lead in regional redistribution as well as in Asia-Europe shipping," he said.

Efforts must also be pursued to make Malaysia a strategic regional transportation hub and global logistic focal point, he said.

Abdullah said Malaysian ports should join hands with the government to divide and direct their strategies towards this end.

"We must also collectively and meaningfully address issues pertaining to the safety, security and environmental quality of our seas."

The challenge for Malaysia as a trading nation, he said, was to continue its competitiveness in terms of the entire transportation and logistics network.

The prime minister also lauded Westport for emerging as a premier port in 10 years and contributing to making Port Klang the 12th largest port in the world.

Also present at the celebrations were Selangor Menteri Besar Datuk Seri Dr Mohd Khir Toyo, Westport Executive Chairman Tan Sri G. Gnanalingam and Deputy Transport Minister Datuk Seri Tengku Azlan Sultan Abu Bakar.

-- BERNAMA

Port Klang
by Maggie

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Star Cruise - Super Star Virgo to Malaysia

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Westport ready to ship out goods, 90 containers waiting to be filled

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Some 90 containers are waiting to be filled with food and other supplies to be shipped out to Aceh, Sri Lanka and the Andaman islands – three of the areas worst hit by the tsunami.

So far, some 200 tonnes of clothes, water and food supplies in 10 containers are ready to be shipped out.

Westport executive chairman Tan Sri G. Gnanalingam said the company was working with shipping lines and hauliers to send aid to the affected countries quickly.

Shipping lines like CMA and Goldstar have contributed 100 empty containers to be used to ship out emergency items, while hauliers such as DiPerdana Holdings Bhd, Kontena Nasional Bhd and Konsortium Logistik Bhd have agreed to assist.

The Port Klang Authority chairman Datuk Yap Pian Hon will spearhead the effort. Gnanalingam said: “The priority is to save those who have survived the catastrophe and to ease their pain and suffering.”

“What we can do is to help in the most practical way, and as support, we have the resources to mobilise shipping lines and hauliers for this,” he said in a statement released yesterday. He said the operation would cost an estimated RM100,000, in addition to the RM150,000 Westport had already donated to the National Disaster Relief Fund and the Malaysian Red Crescent Society.

The Star, 3.1.2005

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Shamsul gets mandate to revamp MISC container?
Francis Fernandez

MALAYSIA International Shipping Corp (MISC) Bhd, the world’s biggest carrier of liquefied natural gas, is believed to have given its managing director cum chief executive officer Datuk Shamsul Azhar Abbas a mandate to help revitalise its container unit.

MISC, a unit majority-owned by the national oil and gas corporation Petroliam Nasional Bhd, gets more than 90 per cent of its profits from shipping liquefied natural gas, and offshore and heavy engineering business.

Mail Money was told that as a result of the mandate, which was given late last year by the board of directors, a management team headed by Shamsul is now in the process of looking into operational model of several overseas shipping firms.

The team, which meets twice a month, is understood to have looked into the operational models of firms such as Hong Kong’s Orient Overseas International Ltd and Switzerland’s Mediterranean Shipping Co SA.

The mandate to revitalise its container unit had led many to speculate that MISC, the country’s largest ship owner, was considering a sale of its container business, especially after the carrier said it planned to sell 32 dry bulk ships to First Financial Corp for US$740 million.

The national carrier is expected to book a gain of US$440 from the proposed sale.

MISC, which had 8,700 employees as at March 31 2004, made only 36.9 per cent or RM2.81 billion of its total revenue of RM7.61 billion from Malaysia.

At the end of 2004, MISC had negative working capital, as current liabilities were RM6.5 billion while total current assets were only RM3.12 billion.

A company with a negative working capital could indicate that it has problems expanding, but having a negative working capital is not always bad.

This is because it could indicate that the company is very efficient at turning over inventory, or that the company has large financial subsidiaries.

As of March 2004, MISC’s accounts receivable of RM1.05 billion was equivalent to 50 days of sales, much higher than its 34 days of sales in accounts receivable for 2003.

MISC’s 50 days of accounts receivable was also higher than its competitors such as Iino Kaiun Kaisha Ltd, Shinwa Kaiun Kaisha Ltd and Daiichi Chuo Kisen Kaisha, which had the equivalent of between 24 days and 36 days of sales.

As of March 2004, the company’s long term debt was RM4.17 billion and total liabilities were RM10.7 billion. The long term debt to equity ratio of the company is 0.36.

MISC’s financial year end on March 31, registered a return on shareholders funds of 20.2 per cent in 2004, compared to 13.6 per cent in 2003.

For the six months ended Sept 30 2004 of the current financial year, MISC posted RM4.87 billion in sales, and a net profit of RM1.54 billion.

MISC gets FPSO contract from Murphy Sabah Oil


Malaysia International Shipping Corporation Bhd (MISC) has been awarded a contract for the provision of a floating production storage and offloading (FPSO) facility by Murphy Sabah Oil Co Ltd for the Kikeh field for a lease period eight years.

In a statement on Feb 1, MISC said the FPSO would be deployed at the deepwater Block K offshore Sabah operated by Murophy Oil under a production sharing contract with Petroliam Nasional Bhd.

In this regard, MISC had entered into a joint venture agreement IHC Inc SA, the parent company of Single Buoy Moorings Inc for the provision and operation of the facility. MISC did not give the contract value.

MISC said the FPSO system would be based on the conversion of one very large crude carrier. The unit will incorporate a process plant for producing 120,000 barrels of oil per day and will be fitted with large capacity water and gas treatment and re-injection plant.

It said the FPSO would be permanently moored in a water depth of 1,300 metres by means of an external turret system. It said the FPSO marine, process and utility systems would allow safe and efficient operations at site.

MISC said refurbishment and conversion works would be executed at Malaysia Shipyard and Engineering Sdn Bhd.

MISC unit sees 12pc-15pc growth in revenue
By KANG SIEW LI


MISC Integrated Logistics Sdn Bhd (MILS) expects its revenue to grow by between 12 and 15 per cent during the year ending March 31 2006.

MILS is the logistics arm of Malaysia International Shipping Corp Bhd (MISC).

MILS and liner businesses are the second largest contributor to MISC’s total revenue, at 37 per cent, with liquefied natural gas (LNG) shipping business in the lead.

“Despite the projected growth of 12 to 15 per cent in MILS’ revenue this year, LNG shipping business will remain the largest source of revenue for MISC. That’s because LNG shipping business is also growing as fast, if not faster, (than MILS and liner business),” MILS managing director and chief executive officer Abdul Aziz Meor Ngah told reporters after the ISO 9001, ISO 14001 and OHSAS 18001 certification ceremony of the company in Subang yesterday.

He expects MILS’ revenue to grow strongly, given the increase in awareness and need for logistics services and supply chain management.

“Demand for logistics services like those provided by MILS will continue to increase as more companies become aware of their cost effectiveness. By outsourcing their non-core businesses, companies can then use their resources and assets for their core business. This is something new and I think it will grow very fast in Malaysia to compete globally,” he added.

Today, MILS offers one-stop logistics services to its customers by integrating ocean freighting, distribution, freight forwarding and warehousing services.

Abdul Aziz said his optimism about the company’s growth also stems from a positive outlook for the local logistics industry.

“This year, (the outlook for the logistics industry) will be as good as last year’s. As long as the economy grows, demand for our services will continue,” he added.

MILS was the first local logistics company to attain the ISO 9001, ISO 14001 and OHSAS 18001 certification at the same time.

“These certifications will be expanded to all our offices in Malaysia within the next six months and subsequently to our regional and global networks,” said Abdul Aziz.

30 Enquiries For Mercruiser Jet


PORT KLANG, 17 Feb (Bernama) -- It was a fine start for the newly-launched MerCruiser Jet with 30 enquiries from interested parties for the waterjet, according to its Malaysian distributor Mercury Marine Sdn Bhd.

Mercury Marine managing director Joseph Tan said the company had wrapped up sales of two units of the waterjets recently. However, he did not disclose the costs or the buyers.

Tan said the MerCruiser Jet could be used for several purposes, such as shallow water operations, patrol operations, fire operations and fishing activities.

He said the waterjet could be useful to agencies such as the Custom and Excise Department, Marine Police and Fire and Rescue Department.

It is also suitable for resort and ferry operators to acquire for recreational and leisure purposes, he added.

"Response for the waterjet has been good so far. We are currently entertaining several enquiries from potential buyers," Tan said after the water trials of the MerCruiser Jet during its unveiling here Thursday.

The waterjet performs smoothly with superior maneuverability that allows 360-degree turning ability at all speeds.

It has applications that are easy to install and require low maintenance. The MerCruiser Jet also has low drag and shallow draft to ensure the safety of people taking water rides.

Tan said the waterjet could accommodate between five and 10 people at one time.

He added that delivery of the waterjet could be made within two months upon receiving the orders.

-- BERNAMA

Mega-sized ‘Mondriaan’ makes first stop in Asia
Monday February 14, 2005


NORTHPORT became the first port in Asia to receive the P&O Nedlloyd Mondriaan, the largest of the mega-sized container carriers belonging to the P&O Nedlloyd fleet.

The 8,450-TEU carrier deployed in the Far East-Europe trade lanes (eastbound) loop D made its maiden voyage to Northport last week.

The vessel, on its way from Rotterdam, had an exchange of about 1,250 TEUs at Northport and continued its cruise eastwards in its Europe-Asia run.

The Liberian-registered ship built in 2004 is capable of handling 700 reefers with 480 reefer points on deck and another 220 reefers below deck.



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P&O Nedlloyd Mondriaan, the largest of the mega-sized container carriers belonging to the P&O Nedlloyd fleet berthed at Northport last week.



P&O Nedlloyd will be deploying three more ships of the same class drawing a weight of 100,000 dwt, in the Far East Europe trade lanes jointly with other partners in an alliance.

P&O Nedlloyd Mondriaan is classed with Germanischer Lloyd’s and draws a service speed of 24.5 knots and is capable of making a round voyage in 35 days covering a total of 10 ports in the Europe-Asia route.

The full port of rotation of the ship covers Southampton, Hamburg, Rotterdam, Port Klang, Singapore, Hong Kong, Yantian, Xiamen and Shanghai.

According to Northport, the arrival of the 335-meter-long P&O Nedlloyd Mondriaan marks the readiness of Container Terminal 3 (CT3) to handle the increasing size of ships with drafts up to 15 meters.

The development of CT3 at Northport is thus seen as timely to cope with the shipping trend that is characterised with the deployment of bigger capacity/size ships, it said.

Two years ago, OOCL started the trend with the deployment of SX-class series ship with OOCL Shenzhen.

Today a total of six ships in the same class with holding capacity of 8,063 TEUs are making regular weekly sailing to Northport.

Besides P&O Nedlloyd and OOCL, the other members of the Grand Alliance (NYK, Hapag-Lloyd and MISC) will also deploying their bigger capacity ships over the next couple of years.

Hapag-Lloyd is expected to deploy its biggest carrier with 8,600-TEU capacity in the Far-East Europe trade by early April.

The German shipping company will be taking delivery of four vessels in 2005, one in 2006, three in 2007 and two in 2008.

NYK, meanwhile, will be deploying its 8,000-TEU carriers in 2006 and 2007 from Hyundai Heavy Industries of South Korea.

The ships with a service speed of 25 knots are expected to raise NYK’s commitment to the Grand Alliance.

Malaysian International Shipping Corporation Bhd, the national carrier is also expected to upgrade its smaller capacity ships (Bunga Raya Satu and Bunga Raya Dua) carrier in the trade with 7,400-TEU vessels.

Taiwanese carrier Yang Ming and K-Line which are operating a weekly pendulum service at Northport will be deploying their eight mega size carriers in the 8,000 TEUs early next year.

MISC Group Posts Pre-Tax Profit Of RM1.026 Bln For Third Quarter

KUALA LUMPUR, Feb 24 (Bernama) -- Malaysia International Shipping Corporation Bhd (MISC) group posted a pre-tax profit of RM1.026 billion in the third quarter ended Dec 31, 2004 an increase of 61.8 percent from RM634 million achieved in the previous corresponding quarter.

In a statement, MISC said the significant improvement was the result of higher freight rates, particularly in the petroleum and liner shipping segments.

Other business segments also showed improvements mainly arising from higher freight rates and improved operating efficiency.

For the quarter ended Dec 31, 2004, MISC recorded a revenue of RM2.939 billion which was 46.5 percent higher than RM2.006 billion recorded for the corresponding quarter.

The prospect of the shipping industry remains positive, it said.

Continued improvement in trading volume and freight rates in the Petroleum, bulk and liner businesses would add to the strong performance for the current year.

MISC's existing long term charters and contracts of affreightment in the LNG and Petroleum businesses will also continue to provide the group with strong and stable earnings.

The prospect of the group for the remaining financial year is expected to be strong, as it will include the exceptional gains on the disposal of vessels.

-- BERNAMA

Inai Kiara To Buy Additional 2-3 Ships For RM1 Bln


PUTRAJAYA, Feb 24 (Bernama) -- Inai Kiara Sdn Bhd, which is involved in the dredging reclamation and marine-related industry, will buy two or three more ships costing about RM1 billion in order to cater to domestic demand.

Its executive chairman Capt Gulzar Mohamad said the new ships would be more advanced and help the company in acquiring more contracts as well as strengthening its leadership position in the dredging industry.

"We plan to order new trailing suction hopper dredgers to add to the existing two units that we have. However, this depends on the place availability of the order purchase," he told reporters after the the handover ceremony of a newly acquired ship here Thursday.

He said the availability depended on the Holland-based ship manufacturer and the company hoped to place the order by end of this year.

The company, he added, would buy the ships via internal funds and bank borrowings.

Gulzar said Inai Kiara has just acquired a new heavy duty cutter suction dredger named "Inai Dahlia" for RM150 million with the aim of further enhancing its capabilities in the industry.

"Inai Dahlia", which has a total installed diesel power of 8,277 kilowatts, is equipped with a high pressure dredge pump, electrically powered cutter head and inboard dredge pump.

With the installed capacity, "Inai Dahlia" can dredge and pump both soft and hard materials at the hourly rate of up to 4,000 cubic metres for fine sand, 2,000 cubic metres for coarse sand and 1,500 cubic metres for gravel-based sand.

Besides that, it can also discharge the materials dredged up to a distance of five kilometres via submerged, floating and land pipelines as well as manoeuvre and operate in shallow and deep waters.

Gulzar said Inai Kiara had received enquiries from overseas companies which are interested in using its services, but at the moment the company could not cope as the local demand is rising.

"Malaysian ports and waterways are fast becoming a major international hub for all types of vessels of large capacity and it is therefore fitting that our ports and harbours are upgraded and deepened to meet the requirements of such vessels," he said.

Last year, Inai Kiara was awarded a 15-year concession contract from the government to manage and maintain all the ports in the country.

"Currently, there are seven main ports and 40 mini-ports in the country. Our job includes deepening the ports, breakwater construction and beach nourishment," said Gulzar who declined to disclose the contract's value.

However, he said the government concession contributed about 50 percent to the company's turnover which amounted at RM500 million in the financial year ended Dec 31, 2004.

Besides the government concession, Inai Kiara also has four projects located in Bintulu, Kuching and Miri in Sarawak, and Kuala Terengganu in Terengganu.

"All the projects are valued at RM700 million and are in the 90 to 95 percent completion state, except for Kuala Terengganu project which has just started with 20 percent completion," Gulzar said.

In the four projects, the company is involved in breakwater construction, reclamation, dredging and marine construction works.

On another note, Inai Kiara will invest RM400 million in building its own home base in Port Klang.

Gulzar said the company has bought a piece of land in Port Klang and work is expected to start on the construction in two months' time.

He said the home base, which is expected to be completed in one- and-a-half years, would be used to store high-technology equipment and for operations.

Established as a private limited company in 1994, Inai Kiara has emerged from a small dredging concern into a major player in the dredging, reclamation and marine related construction industry.

Among its projects which have been completed was the phase two development project for Pelabuhan Tanjung Pelepas for the construction, completion and maintenance of dredging and reclamation works.

Meanwhile, Deputy Transport Minister I, Datuk Douglas Uggah Embas, who witnessed the handover ceremony, said the new acquisition marked a new beginning for Inai Kiara.

He added that the projects undertaken by the company has helped to reduce the country's dependency on international marine contractors.

-- BERNAMA

Malaysian Bulk Carriers Sees Strong Growth This Year


KUALA LUMPUR, Feb 24 (Bernama) -- Shipping specialist Malaysian Bulk Carriers Bhd sees strong growth this year, its chairman Teo Joo Kim said Thursday.

"We saw the peak of dry bulk in the first quarter of 2004. Then it came down but towards the fourth quarter it came back, almost at same peak as the first quarter. Going into 2005 things look very strong again although they have not reach the same peak," Teo said at a media briefing here.

However, he added that the current scenario is not expected to last.

According to him, the market supply situation is still in a state of imbalance, with the building of new ships still far off and supply might be affected by the extension in services of very old ships.

"We should take advantage to lock in long-term contracts like what we have been doing before," Teo said.

The company, he added, has drawn up strategies to develop more relationships which it has been cultivating with various parties like ship owners and shipyard operators.

Asked about future plans, Teo said the company is aiming for a consistent investment and increase year by year.

For the financial year ended Dec 31, 2004, the company recorded a higher pre-tax profit of RM284.537 million, up from RM129.977 million in 2003.

Revenue rose to RM382.288 million, an increase from RM213.009 million in the previous financial year.

-- BERNAMA

Malaysian Ports To Be Major Hub For Bunker Supply In Region
February 28, 2005 16:52 PM



KUALA LUMPUR, Feb 28 (Bernama) -- Malaysia will be a major hub for bunker supply in the region through the efficiency of its ports and availability of competitive infrastructures, Transport Minister Datuk Seri Chan Kong Choy said Monday.

"It has always been a wish of the government, especially the Transport Ministry, to see Malaysian ports become more competitive and to enable us to achieve this, we must have world-class efficiency and a very good infrastructure," he said.

He was speaking to reporters after witnessing the signing of two agreements involving Labuan offshore entity KIC Oil & Gas Ltd, here Monday. One was between KIC and Switzerland's Trafigura Beheer BV on trading and storage, while the other was between KIC and Singapore's DBS Bank Ltd for a US$50 million trade finance facility.

Earlier in his speech, Chan said the country's two principal ports, Port of Tanjung Pelepas (PTP) and Port Klang, have continuously pursued technological and operational improvements in their efforts to become world-class.

Last year, the two ports moved over 9.2 million TEUs (twenty-foot equivalent units) of containerized cargo.

"This combined volume ranks our ports among the busiest in the world. A total of 18,343 vessels arrived at PTP and Port Klang for January to November 2004 period," he said.

Commenting on Monday's signing, Chan said it marked a significant milestone towards achieving the government's vision to become an important bunkering fuel supplier.

"I think with the assistance of KIC, we would have no problem at all in meeting the demand for bunkering fuel but also at more competitive prices compared to those in the region. This will attract more and more shipping lines to get their supplies from Malaysia," he said.

Currently, the bunker supply in Malaysia is being imported via Singapore.

Chan said he is confident that over the years the demand for bunkering fuel would increase.

Asked about the progress of KIC's proposed development of a petroleum hub on Johor Port Authority's reclaimed island at Tanjung Pelepas, Chan said negotiations are still ongoing for the US$400 million project.

"We have been talking to KIC to explore the best way to set up the petroleum hub and oil and gas hub in the bunker island and hope the project will be accomplished as soon as possible around this year," he said.

-- BERNAMA

RM400mil hub to boost ports



KUALA LUMPUR: The proposed construction of a RM400mil petroleum, oil and gas hub near the Port of Tanjung Pelepas (PTP) in Johor is part of the Government's plan to ensure Malaysian ports achieve world-class status.

Transport Minister Datuk Seri Chan Kong Choy said the hub, which would be based at the Johor Port Authority's reclaimed 100-acre island near PTP, would complement existing port infrastructures and help make Malaysia self-reliant in the fuel oil industry.

“It is the wish of the Malaysian Government to make our ports an important bunkering fuel supplier, and we are coming close to ensure that this vision will come true.

“So we will give our strongest support to all the players to move ahead and make sure it happens,” he told reporters after witnessing the signing ceremony between KIC Oil & Gas Ltd and two other companies – DBS Bank Ltd and Swiss-based Trafigura Beheer B.V. – here yesterday.

Bunker fuel, also known as fuel oil, is an industrial fuel that is most economical to be used in high volume heat applications such as steam boilers, furnaces and kilns.

It is also used as internal combustion engine fuel in medium and low-speed diesel engines.

While bunker supply in Malaysia is currently being imported from Singapore, Chan said the shift towards building home-grown sources of supply would allow the country to provide bunker fuel at a more competitive price compared with other regional ports.

Chan also said the country's two principal ports, PTP and Port Klang, were ranked as among the busiest ports in the world after moving a combined volume of 9.2mil TEUs (twenty-foot equivalent units) of containers last year.

Westport Set To Be Port Of Choice For Two New Services
March 02, 2005 19:32 PM




KUALA LUMPUR, March 2 (Bernama) -- Four renowned shipping lines -- Goldstar Line Ltd, China Shipping Container Lines, UK-based Ben Line Agencies and Hong Kong-based COSCO Line -- have joined forces to kick off the Australia East Asia Service (AES) at Westport in Port Klang near here.

The AES, a joint weekly service, offers direct connections to major ports in the Australia region via Westport, which is among the top five ports in terms of productivity.

Each partner in the new service would provide a vessel each.

The service began with an inaugural call at Westport on Feb 24, 2005 by Liberia-based MV Scotia, a vessel with a capacity of 1,700 TEUs, operated by Hong Kong-based Gold Star Line Ltd .

Westport said American President Line (APL) has combined forces with French Liner CMA-CGM to start the Red Sea Express (REX) to cater for the growing trade between East Asia and the Middle East.

The service would connect ports such as Shanghai, Chiwan, Hong Kong to major ports in the Middle East.

"The first vessel, which marked the inauguration call of the REX service at Westport, was CMA-CGM's M.V Engiadina on Jan 8, 2005," it said.

Presently, six vessel were deployed for this service.

With the 40-42 days of the rotation period, it said there would be weekly sailings to Westport.

The port also said with the addition of the REX service, it is expected to increase its volume by approximately 3,000 teus (twenty-foot equivalent units) per month.

"The commencement of these two new services at Westport Malaysia as its port of call in Port Klang, rightly illustrates the port's credibility and efficiency to meet the growing demands of its customers," it said.

-- BERNAMA

MSET To Launch RM34-Mln Ship On March 20th
March 08, 2005 18:38 PM




KUALA TERENGGANU, March 8 (Bernama) -- MSET Shipbuilding Corporation Sdn Bhd (MSET), the sole Bumiputera shipbuilder in the east coast, would be launching a 60-metre long ship, owned by Tanjung Offshore Services Sdn Bhd, this March 20.

The company's senior finance and administration officer, Anuar Ali, said work on the RM34 million ship started in May last year at its Pulau Duyong wharf, involving about 50 skilled workers.

The ship which is the largest to be built by MSET so far, would be used in the gas industry for transportation of gas from land to platform or platform to platform, Anuar told Bernama, here Tuesday.

He said MSET which has long been involved in the business of shipbuilding and fast boats especially for security based organisations such as the Malaysian Police Force and Customs Department, was now looking into expanding its operations further.

MSET which was fully privatised in 1997, currently has 130 skilled workers including locals and between 800 and 1,000 contract workers.

"We have applied to the Terengganu state government to acquire land of between 50 and 100 hectares and our focus would be to further expand our wharf in Pulau Duyong as the area is suitable for the industry that we have ventured into," he said.

Anuar said MSET, which is 100 percent Bumiputera owned, was not only concentrating on its ship building activity but also in the training of its staff as skilled workers for the future growth of the company.

He said MSET was currently building five 10-metre Aluminium RIB patrol boats ordered by the Customs Department with a price tag of RM700,000 each.

MSET carries out its ship building activities both in its Pulau Duyong wharf and Pulau Kambing wharf as well as in a workshop in Gong Badak for the smaller boats.

-- BERNAMA

MISC cruises ahead with its expansion plan
BY SIDEK KAMISO

AFTER divesting 32 bulk carriers last year, Malaysia International Shipping Corp Bhd (MISC) is cruising ahead with its plan to rationalise non-core assets and focus on its growing energy-based portfolio.

For this year, the plans include:


Divestment of the remaining two bulk carriers and some container liners;

Expansion of trade routes for liquefied natural gas (LNG) to India, from Iran and Malaysia, as well as from Iran to European destinations.

Included in its plan to divest non-core business is the potential sale of its 36.8% stake in Affin Merchant Bank.

The heavy engineering division, which comes under 65%-owned Malaysian Shipyard Engineering Sdn Bhd, will be further strengthened in line with the boom in the oil and gas sector.

These plans formed part of the key focus to grow its global energy-based shipping and logistic business segments, general manager (corporate planning services) Michael Ting Sii Ching said at the Invest Malaysia 2005 conference last week.

Three major areas – offshore, tanker and LNG operations – are set to drive the company's future growth.

“Its strong balance sheet gives the company considerable clout to obtain funding for its expansion plans,” said a fund manager at a bank-backed brokerage.

MISC is regarded to be a consistent player with a strong position in the global maritime industry and a track record of impressive earnings.

The shipping giant's nine-month revenue of RM7.8bil had already exceeded that for the whole of last year, which was RM7.6bil.

The strong charter rates had also resulted in record earnings before interest, tax, depreciation and amortisation (EBITDA) of RM3.8bil for the current nine-month period, compared with RM3.7bil for the whole of last year.

In terms of market capitalisation, MISC, with total market capitalisation of US$7.8bil (RM29.8bil), is currently the third largest in the world after Denmark-based AP Moler- Maersk A with US$42.3bil (RM162.9bil), and Mitsui OSK Lines with US$8.1bil (RM30.8bil).

Another two Japanese companies Nippon Yusen Kebushiki, with market capitalisation of US$7.6bil (RM29bil) is fourth and Kawasaki Kisen is fifth, with US$4,2bil (RM16.2bil).

Its strong financial standing is reflected in the recent upgrade by Standard & Poor's Ratings Services of its long-term corporate credit rating to A- from BBB+.

MISC has a fleet of 127 ships, comprising 29 LNG carriers, 58 petroleum tankers, 13 chemical tankers, two bulk carriers, 22 containerships and three floating production, storage and offshore loading (FPSO).
It also has a relatively young fleet, averaged 8.1 years.

Last year, the company had aggressively sold off 32 of its bulk carriers, which had resulted in an exceptional gain of over RM400mil. At the same time, it had placed in orders for 23 ships to be delivered by 2009.

The new purchases comprise 11 LNG tankers, six very large crude carriers (VLCCs), two Aframax tankers, two containerships and two FPSO vessels.

Despite its expansion, MISC's debt-to-equity ratio is still low, allowing the company to build up its fleet rapidly, especially in the LNG division to capture the global demand for the transport of oil and gas.

The latest figures indicate that MISC has a debt-to-equity ratio of 0.71 gross and 0.61 net.

“MISC is very well positioned to seize the opportunities in global LNG transportation in view of it being the largest single owner of LNG tankers in the world,” said the fund manager.

Although the bulk of MISC's fleet is dedicated to serve its main shareholder, Petroliam Nasional Bhd, it has developed new businesses.

Currently, two of its 18 LNG vessels have been time-chartered to third parties – French gas supplier Gaz de France and energy trading company J&S Cheniere S.A.

On its other non-shipping businesses, MISC's chances of disposing of its stake in Affin Merchant are brighter, due to the recent changes in foreign ownership rules on investment bank.

Analysts said it should be easier for MISC to find buyers for the stake, given the further relaxation in shareholding by foreigners, who were now allowed to own up to a 49% stake in an investment bank.

A fund manager said proceeds from this potential sale would be timely to fund its current expansion of fleet.

Based on Affin Merchant's book value of over RM3bil, MISC's stake of 36.8% could be worth more than RM1bil.

Besides the stake in Affin Merchant, MISC's other non-core business is a 25% share in Malaysia-Pakistan Venture Sdn Bhd.

MMM secures Tenaga, Indian refinery contracts
By Jimmy Yeow


Malaysian Merchant Marine Bhd (MMM) has secured several major contracts including multi-year coal shipments for Tenaga Nasional Bhd and shipments of clean products and chemicals for a major Indian oil refinery in Mumbai.

Sources say the Tenaga and Indian refinery contracts are worth at least US$6 million (RM22.8 million) and US$2.7 million per annum respectively.

MMM chief operating officer Capt Panichellvam Ratnam confirms securing the contracts but declines to comment on the value. He also declines to identify the Indian refinery.

He tells FinancialDaily that the three-plus-one-year shipment contract for Tenaga involves ferrying 500,000 tonnes of coal annually from Indonesia or Australia to its Janamanjung coal-powered plant on the man-made Lekir island in Lumut, Perak.

Govt To Investigate Mystery Ship At Port Klang
April 09, 2005 17:16 PM





LANGKAWI, April 9 (Bernama) -- The government will conduct further investigation on the ship, "Glenn Brave Heart", berthed near the Klang Port wharf to ensure that the country's security is not compromised, Datuk Seri Najib Tun Razak said Saturday.

The deputy prime minister said the investigation would focus on the activities of the ship and its crew who were believed to have been in Malaysian waters since last July.

"As far as I know, the ship had obtained permission from the authorities to berth in the waters," he told a news conference after handing over the keys to 27 permanent houses to the tsunami victims in Taman Batu Ara, Kuala Triang, here.

He was asked to comment on reports on the presence of the ship, which had berthed about 500m from the North Port, Klang Port, since last July.

The port staff claimed there were suspicious activities on board the ship every morning involving about 25 military personnel in commando outfits and armed with M-16 rifles.

Najib, who is also defence minister, said he understood that the ship was mapping the area but the government would further investigate its activities.

"We must ensure that the country's security is not compromised. We are waiting for further reports," he said.

On Umno, Najib, who is the party deputy president, said that party members who were unhappy with the disciplinary board's decisions could appeal to the Umno Appeal Board.

He said the disciplinary board was made up of experienced individuals who were free to make decisions without any interference or influence by any party.

Najib also said that the government would build 1,066 permanent houses under the people-friendly concept for the tsunami victims in Kedah and Penang.

The houses costing RM52,000 each would be built by Syarikat Perumahan Negara Berhad (SPNB) within a year and the buyers had only to pay RM50 a month for 30 years.

He said the land was given free and two-thirds of the construction costs would be borne by the government through subsidies and contributions from the people in the country.

He said that 98 per cent of the houses of the tsunami victims had been repaired.

-- BERNAMA

Ship Owner says no Military Activity on `Gelenn Brave Heart'




SHAH ALAM, April 9 (Bernama) -- The owner of the ship "Glenn Brave Heart", Glenn Marine Group (Asia) Sdn Bhd, today denied there were any military activities aboard the ship moored outside the Northport wharf at Port Klang.

The general manager of the company Carmen Edmonds said the incident reported to have happened aboard was a routine security drill held by the crew members.

Being a logistics ship which carries high-tech equipment and often sails on the high seas, the drill was aimed at ensuring security, he said when commenting on media reports about the ship.

Deputy Prime Minister Datuk Seri Najib Tun Razak earlier today told a news conference in Langkawi that the government would investigate the ship to ensure the country's security was not compromised.

"As far as I know, the ship had obtained permission from the authorities to berth in the waters," he said when asked to comment on reports about the ship.

The port staff had claimed there were suspicious activities on board the ship every morning involving about 25 personnel dressed in commando outfits and armed with M-16 rifles.

Edmonds, a former Lt Commander of the Royal Malaysian Navy, said none of his crew members was a soldier.

They were all foreigners from Nepal, the Philippines, Myanmar and other countries, he said.

He said the "weapons" used during the drill were fake.

On the flags shown on the sleeves of the crew's uniforms, he said they were of Malaysia, Singapore, Brunei, Indonesia, Timor Leste and Hong Kong where his company has offices.

He said the firm bought the 40-year-old ship from the Singapore Navy last year.

Edmonds said the ship was registered in Panama and the number on its side was the registration number and not the number of a warship.

He also denied the ship had been anchored in the Northport waters since July last year. The ship, he said, had sailed in and out of Port Klang and the last time it did that was last month.

On the reported helicopter, he said it belonged to outsiders who were shooting aerial pictures.

Meanwhile, in KUALA LUMPUR, marine police commander SAC II Abdul Rahman Ahmad said Glenn Marine was a shipping agent based in Petaling Jaya.

He said the ship provided logistics services for military ships from the United States, France and Spain to berth at ports in the region and would supply equipment like floats and barriers and safety control services.

Its services were needed because most of the foreign military ships could not carry the big and heavy berthing equipment, he told reporters.

He said the company had 46 workers -- 25 Nepalese, 20 Filipinos and Myanmars and one Brunei national.

"What the port staff saw, that is, commandos preparing for duty using M-16 rifles and the use of a helicopter, was for an aerial filming series by the company on April 2 for inclusion in its website for commercial purposes.

"The M-16s used were fake and investigation showed that the filming was approved by Klang Port Authority and the Marine Department," he said, adding that the filming took only two hours.

Abdul Rahman said the ship had been operating in Port Klang since 2004 and the last time it berthed at North Port was on March 2, after providing logistics services at other ports.

-- BERNAMA

MISC up on news of LNG ship delivery
BY DANNY YAP

MALAYSIA International Shipping Corp Bhd (MISC)'s share price surged to a new record high of RM17 yesterday on expectations that the company will soon be taking delivery of the sixth liquefied natural gas (LNG) ship it ordered from Japanese shipbuilder Mitsui Engineering & Shipbuilding Co.

This latest development in a series of positive news flow for MISC has renewed investors’ interest in the national shipping company. MISC’s share price jumped to RM17.40 – its highest level in 12 months – before closing at RM17 or 20 sen higher against its previous record high of RM16.80. A total of 273,900 shares were traded.

The tanker, known as Puteri Mutiara 1, is the last of six LNG ships of its series ordered by MISC to boost its LNG fleet to 19.
A source said the ship would arrive in Malaysia in seven days and be operational within the month.

“We expect the rates charged by the ship to have a positive impact on MISC's earnings in the first quarter ending June 30, 2005,” he said, adding that MISC had contracted to take delivery of 10 more LNG ships of a different series over time.

Last year, the LNG business contributed about 30% of MISC's revenue.


“The arrival of the new ship would have a substantial impact on the LNG business, but not necessarily on the company as a whole because of MISC's diversified business structure,” the source said.

Besides LNG ships, MISC also has petroleum tankers, chemical tankers and dry bulk carriers in its fleet.

In addition, the company is involved in heavy engineering, integrated logistics, shipping agency, maritime education and training, offshore business and non-shipping business.

An analyst with TA Securities said MISC was fast expanding its operational capacity in view of the recent contracts won and possibly more contracts in the future.

A report by the stockbroking firm said MISC was recently awarded a US$138.73mil contract for the supply, operation and maintenance of a floating, storage and offloading facility by Talisman Malaysia Ltd.

The contract is for 11 years with an option for a one-year annual renewal up to four years. Talisman is one of the operators of the production block contract with Petroliam Nasional Bhd (Petronas).

In early February, MISC was awarded a contract worth RM663mil for the provision of a floating, production, storage and offloading (FPSO) facility by Murphy Sabah Oil Co Ltd, and in March last year, MISC delivered the Bunga Kertas offshore facility to Petronas under a contract worth RM500mil.


“Based on the long-term value of the contracts, we have raised MISC's earnings by 1%, which would translate into FY06 price-earnings ratio (PER) of 9.4 times compared with the sector's average at 11.45 times,” the analyst said.

The brokerage said MISC had a potential upside of 20% from its current price, based on 10% premium to the sector's PER, due to its big market capitalisation.

“Given the potential upside, we are maintaining our 'buy' call,” he said.

The analyst also said the offshore business could become a new growth segment for MISC as the company planned to spend part of its US$4bil five-year capital expenditure on offshore business, mainly in FPSO.

“We believe MISC is on the right track to capitalise on the growing demand for FPSO and thus, the recent contracts are probably only the beginning,” he said, adding that more contracts were likely to be won since MISC had been reported to be partnering Single Buoy Mooring (SBM) for FPSO contracts overseas.

For the year to March, MISC's net profit is forecast to rise 26% to RM2.88bil from RM2.29bil in fiscal 2004, based on Reuters Estimates.

http://img9.exs.cx/img9/2492/lnga15lu.jpg (http://www.imageshack.us) http://img9.exs.cx/img9/1606/puteriintansatu018vo.jpg (http://www.imageshack.us)


"PUTERI INTAN SATU"

"PUTERI INTAN SATU" for Malaysia International Shipping Corporation Berhad (MISC) was designed and built at the Nagasaki Shipyard &Machinery Works of Mitsubishi Heavy Industries, Ltd. (MHI) and delivered to MISC on 29th August, 2002.
The ship is a 137,100 m3 LNG tanker to combine Gaz Transport’s membrane cargo containment system and the first ship of six (6) sister ships which are built by consortium of MHI and Mitsui Engineering Shipbuilding Co., Ltd. (MES) (MHI:3 ships, MES 3 ships).
The ship is the first Japanese-built LNG Tanker which is applied Gaz Transport’s membrane cargo containment system.

Malaysian Bulk wins TNB coal contract


MALAYSIAN Bulk Carriers Bhd, a shipping company controlled by billionaire Robert Kuok, said it has won a three-year contract with Tenaga Nasional Bhd to ship coal to Malaysian ports.

The contract involves carrying about two million tonnes of coal each year for use in power plants, Malaysian Bulk said in a statement to the Bursa Malaysia.

The company did not give the value of the contract, which Tenaga has the option to extend for another year.

Malaysian Bulk, which was listed on December 2003 and counts Kuwait Petroleum Corp and Korea Line Corp among its customers, surpassed profit targets last year, boosted by surging demand for coal, soy beans and other commodities.

Coal shipments are expected to rise this year. Seaborne trade in thermal coal, used for power generation, may increase 5% to 488 million tonnes, London-based shipbroker Clarkson Plc said in the March edition of its Dry Bulk Trade Outlook.

Separately, Malaysian Bulk said its Lightwell Shipping Inc unit signed a venture agreement with a unit of Japan's Itochu Corp to operate a double-hulled tanker that's under construction. Lightwell will own 60% of the venture. – Bloomberg

Port Klang A Transit Point For Used Items
April 11, 2005 20:52 PM




KLANG, April 11 (Bernama) -- The Selangor Department of Environment (JAS) has detected a group that is using Port Klang as a transit point for the despatch of used wet batteries from one country to another, Selangor state executive councillor in charge of environment Datuk Ch'ng Toh Eng said Monday.

He said the department had sealed the goods and investigations were going on.

"We managed to detect the operation with the co-operation of the Royal Customs Department but I am unable to disclose more details because it is still being investigated," he told reporters after inspecting the illegal dump site where 13,000 drums of used oil had been discarded, at Lot 30367, Kampung Sungai Kandis, here.

Ch'ng said those who wished to bring in used items into the country must first obtain permission from JAS.

He said the report on the investigation would be ready soon and those responsible would be prosecuted.

He said the case was one of four this year involving the dumping of toxic wastes and scheduled wastes.

Ch'ng said Kualiti Alam Sdn Bhd, a company which operates a scheduled wastes centre in Bukit Nanas, Port Dickson, was carting away the drums. The work was expected to be completed in three weeks.

He said those responsible would be prosecuted.

-- BERNAMA

Business Times - 12 Apr 2005

Phase two development on schedule: PTP

(SINGAPORE) The Malaysian Port of Tanjung Pelepas (PTP) said its phase two development is on schedule with 40 per cent more container yard space coming on stream in August as the six-year-old port breaches the one-million-TEU mark for the first time.

The container port posted a 5 per cent growth in container volumes for the first quarter this year over the same period in 2004 with volumes hitting just over one million TEUs. Most of this volume growth came from transhipment cargo which comprised 96 per cent of total volumes.

Local export cargo grew 37 per cent to 34,709 TEUs for the first quarter which PTP attributed to increased activity in its free zone where a new halal food distribution hub is being developed.

PTP said it will complete the first four rows of container yard blocks 10, 11 and 12 this month which will support the first two berths of its second phase expansion that it completed in July last year.

The remaining yard space will be completed by end-August, boosting capacity by 40 per cent, or up to 154,000 TEUs at any one time, PTP said.

By end-April, PTP will also complete the construction of a new power substation which will run the latest generation of 82-tonne super post-panamax gentry cranes. Capable of handling 40-ft container twin lifts, these cranes will be operational in the fourth quarter of this year.

PTP's phase two berths have depths of 19 metres, enabling them to handle ships up to 250,000 DWT, including the next generation of container ships up to 12,000 TEUs.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

OOCL Atlanta Makes Maiden Call At Northport


PORT KLANG, April 15 (Bernama) -- OOCL Atlanta, another container belonging to Hong-Kong-based Orient Overseas Container Line (OOCL), made its maiden call at Northport, one of the premier ports here.

The 8,063 TEUs (twenty-foot equivalent units) size container ship, OOCL Atlanta, called at Northport on Wednesday.

OOCL Atlanta is been deployed in the Grand Alliance's service schedule and join the Super Shuttle Express (SSX) service with port rotation including Port Klang, Malaysia.

The 323-metre carrier is being deployed in the TransPacific trade. The port of rotation of the service covers Port Klang, Singapore, Yantian, Hong Kong, Long Beach, Kaohsiung and Shekou.

The mega container, which is built by Samsung Heavy Industry, has a service speed of 25.2 knots at full load and able to make a round voyage in 42 days.

Other mega containers under OOCL umbrella that had called at Northport were OOCL Ningbo, OOCL Shenzen and OOCl Hamburg.

-- BERNAMA

Port Operators Management Urged To Check Container Seals Via RFI


KUALA LUMPUR, April 14 (Bernama) -- The Federation of Malaysia Freight Forwarders (FMFF) has proposed that Port Terminal Operators Management check all container seals at the gate through a radio frequency identification (RFI) to eliminate fraudulent activities and attain customers confident.

"Port Terminals security do not verify/physical check on container seals during the exit/entry/point, while Port Terminals security do not want to take these responsibilities due to various reasons known to them, it said in a memorandum issued at an Annual Dialogue held with the Minister of International Trade and Industry, Datuk Seri Rafidah Aziz, here Thursday.

FMFF said the process, documentation and physical movement of goods between Inter Terminal Transfers (ITT) of goods between Port Terminals (Westport/Northport) were inefficient.

Therefore, it proposed that the documentation process between the two port terminals be harmonised under one port operating system to enable and ascertain more activities on efficient delivering system.

The federation said proper information were not disseminated to frontliners (forwarders) by Other Government Agencies (OGA) such as Agriculture, Pharmacy, Health, and Veterinary to the front liners (forwarders) thus resulting in a negative impact on trade balances.

It suggested that government policies imposed directly or indirectly effecting trades should be channeled to the hand-on-or "front liners" (forwarders).

OGA should give proper information, requirement, process and specific guidelines to enhance professional services for smooth and effective and reliable flow of goods for the good of the country's trades.

For security purpose and to meet to International Standard on Port Safety, FMFF proposed that all dangerous cargoes handlers must go through a basic course to avoid unforeseen problems as well as to produce professionalism at par with international organisation.

It said dangerous cargo handlers must be registered with a body such as Port Authority which governed port activities.

On another note, FMFF wants all export licence applications to be approved within one working day.

It said export licence approval took an average of seven working days as such licence was critical of execution of export shipment especially on the last moment production readiness.

-- BERNAMA

Transport Minister Tells M'sian Ports To Combine Their Strengths


JOHOR BAHARU, Apr 14 (Bernama) -- Malaysian ports should combine their strengths by co-operating with each other and compete with other ports in the region, Transport Minister Datuk Seri Chan Kong Choy said Thursday.

Local ports should also work closely to complement each other and avoid fierce competition, he said.

"We have seen the emergence of new ports and bigger-sized ships in the last decade. The trends in the port industry call for mega alliances, mega networks and mega hubs. Such worldwide shifts in the ports industry are dictated by customers.

"They want faster services which will help to reduce time and cost. Therefore, it is time for Malaysian ports to synergise their strengths to compete with regional ports," he told reporters here after attending a handing over ceremony of Kalmar Smartrail System to the Port of Tanjung Pelepas (PTP).

The PTP has retrofitted 67 of its rubber-tyred gantry cranes with Kalmar Industries's Smartrail System, which employs the reliable satellite Differential Global Positioning System (DGPS) for improved automation and safety for container handling operations in the staging yard.

The system will help to increase equipment travel speed of up to 30 percent, enhancing productivity by up to 25 percent, reducing equipment collisions to zero and eliminating loss of container boxes.

Chan disclosed that the ministry's port competitiveness committee was looking into increasing the competitiveness of Malaysian ports.

"We are aware of the need to provide consistent, world class facilities and services, speed, efficiency and productivity. This is because carriers value all these. To compete in this (competitive) environment, ports must invest in the right cranes, loaders, quay expansion and information technology," he said.

PTP, he said, had followed the right formula in port management and operations, all of which had enabled it to become the 16th top container port in the world.

PTP has also become the fastest growing container terminal in the world within six years.

Last year, PTP set a new throughput record by handling 4.02 million TEUs, an increase of 15.2 percent as compared with 3.49 million TEUs in the previous year.

The Chief Executive Officer of PTP, Datuk Mohd Siddik Shaik Osman, said the port had been recognised as one of the most efficient ports in the region by customers following its gross crane moves of over 33 moves per hour.

-- BERNAMA

Northport Taking Shape As One Of Busiest Ports


PORT KLANG, April 18 (Bernama) -- From a short visit to Northport these days, one can easily summed up that it is one of the busiest ports in the country, if not in the world.

Vessels, which come in various sizes and different origins ferrying tonnes of consignments, are making a beeline at the wharves for loading purposes while port workers and vessel crew are engrossed in doing their work.

Other vessels meanwhile patiently docked temporarily at deep the water point, waiting for the cue to berth at the port wharf.

"Most of the time we are busy... what you see is nothing unusual," said a staff of Northport attending to container vessel Austral Asia Line recently.

Even Royal Malaysian Navy (RMN) KD Mahawangsa had to wait for its turn. The vessel, which had entered Malaysia waters as early as 8am from Aceh last Saturday, could only docked at the wharf at mid-day.

Northport is one of the premier ports here, apart from Westport.

Last year, Northport registered a throughput volume of 2.7 million TEUs (20-foot equivalent units), an increase of 5.8 percent compared with 2.5 million TEUs in 2003.

Northport is also ready to cater to the requirements of mega carriers following the completion of Berth 12 and 13, which formed the major part of Container Terminal 3.

Tan Sri Ahmad Sarji Abdul Hamid, chairman of NCB Holdings Bhd which operates Northport, said recently that around RM93 million had been invested in Berth 12 and RM45 million in Berth 13.

He added that with the commissioning of the berths, Northport is now poised to handle a further one million TEUs annually.

Northport, in particular, is the home to one of the world's largest liner group, the Grand Alliance.

The Grand Alliance comprises P&O Nedlloyd, Hapay Lloyd, NYK and Malaysia International Shipping Corporation Bhd (MISC).

P&O Nedlloyd had in February deployed one of its mega-sized container carrier, the 8,450-TEU Mondriaan, to Northport.

-- BERNAMA

Kemaman Port Performance Improves
By Tuan Sharifah Shahaini Tuan Dayang

KEMAMAN, April 18 (Bernama) -- Deputy Transport Minister Datuk Seri Tengku Azlan Abu Bakar is satisfied with the performance of Kemaman Port, which handled 3.359 million tonnes of cargo last year, an increase of 12 percent compared with 2.988 million tonnes in 2003.

This was achieved despite the drop in the number of ships calling on the port to 337 last year from 363 in 2003, he told Bernama, here Monday after visiting the port.

However, he said that tonnage increased to 3.3 million gross rate tonnage (GRT) last year from 2.9 million GRT in 2003, a rise of 11 percent.

Tengku Azlan said that for the first two months of this year, the port also did well handling 647,898 tonnes of cargo, an increase of 19.9 percent compared with 540,151 tonnes in the same period last year.

"During the first two months of this year, I was also informed that the number of ships calling on the port increased to 47 from 46, a rise of 2.2 percent," he said.

Apart from that, Tengku Azlan said that the project to deepen the port would be implemented this year to ensure that ships of 150,000 DWT would be able to approach the West Wharf. The project is expected to be completed before the third quarter of this year.

He said that with the completion of the project, efforts to attract investment to Terengganu could be stepped up, especially for the port's West Wharf and East Wharf.

Also present was Kemaman Port General Manager Khairul Anuar Abdul Rahman.

-- BERNAMA

Westport Poised To Handle Three Mln Containers This Year
April 21, 2005 12:46 PM
By Yong Soo Heong




KUALA LUMPUR, April 21 (Bernama) -- Westport is poised to handle three million container boxes (20 ft equivalents or TEUs) by the end of this year following its excellent performance in the first quarter of 2005, says its executive chairman, Tan Sri G. Gnanalingam.

"We expect our performance for the next three quarters (of 2005) to be even better," he said.

In 2004, Westport, one of two ports at Port Klang near here, handled about 2.6 million TEUs.

On a year-on-year basis against Q1 2004, volume grew by 12 percent to more than 700,000 TEUs in Q1 2005 while revenue grew by 15 percent.

"Our revenue and operating margins are good," said Gnanalingam, without providing absolute figures. Last year, Westport posted about RM500 million in revenue.

"We are also well-positioned to capture five million boxes annually for the next five years in view of our capacity build-up, state-of-the-art infrastructure and high productivity levels," he said in an interview.

All this, he said, meant that growth at Westport would be sustainable over the medium and long term.

"We are viable. With an "AA-" rating from rating agencies, funding is therefore not a problem. But for the immediate future, all funding will be internally generated," he said.

In terms of infrastructure, Gnanalingam said Westport would be adding another 600 metres of port length and acquiring another four cranes by the end of this year.

At present, Westport has 17 berths and 20 quay cranes (Super Post Panamax), two mobile harbour cranes, 63 gantry cranes, 167 prime movers, 214 trailers and 12 forklifts.

"So the road map and plans for Westport's are all well settled," said Gnanalingam.

Asked how Westport had earned a reputation as a fast and flexible port over the last 10 years, he said, "We believe that the port business has three major ingredients for success -- productivity, service quality and business relationships. This is a relationship marketing business.

"Shipping lines have all kinds of problems in terms of delays at other ports and weather. The key issue in this business today is fast turnaround. Our flexibility and ability to adapt to all these shipping lines have made us the preferred port.

"We make sure that almost every ship can berth upon arrival. And shipping lines now know that when they come to Westport, not only can they berth, they can have a fast turnaround through our high productivity."

Gnanalingam said the business of attracting more shipping lines to call at Westport or handle greater volume also rested on a port's reputation in productivity and delivery times.

"If these two (factors) are there and the customer is sure of it, more and more will come. I believe that most of this is spread by word of mouth," he said.

Elaborating on productivity, Gnanalingam said when Westport started 10 years ago, its crane operators could handle only 20 moves or pick-ups per hour for container boxes compared to 25 per hour at the Port of Singapore Authority.

"We can now do 32 and our boys have set themselves to doing 35 later this year as we have a very good incentive scheme for those who achieve the productivity targets," he said, adding that the scheme also acted as a stimulus in motivating core operations employees and promoting competition among them.

As for break bulk cargo, he said Westport used to handle 150 tonnes per hour.

"Now we are doing 200 tonnes per hour for break bulk and in dry bulk, our customers are used to 100 tonnes per hour but we can do 400 tonnes per hour, sometimes we can even exceed that and have gone to 600 tonnes per hour," he said.

Gnanalingam said that in terms of Vision 2020 and in attaining world-class standards, "Westport is already there."

He said Malaysia's ports industry was already ahead of many other domestic industries in employing world class practices and high technology and communications.

"This is something which every Malaysian exporter or importer should know so that that more of their goods will be handled by Malaysian ports," said Gnanalingam.

Exporters and importers should realise that Malaysian ports have some of the cheapest rates in the world, he said.

Given that Malaysia was the world's 17th largest trading nation, he said Malaysian ports have a crucial role to play so that the inventory of the nation was not held up at the ports.

"People these days can no longer complain that the infrastructure at Malaysian ports is not good anymore. We must give credit to the government for realising that good infrastructure is the key towards economic growth," said Gnanalingam.

Good infrastructure and good service delivery at the ports were factors that would make Malaysia competitive, he said.

-- BERNAMA

JUMBO SHIP... The world's fourth largest cargo ship, OOCL Shenzhen moors at Berth 13, Northport in Port Klang, Friday. Pix: Rosnah


http://foto.bernama.com/foto/Photo/jumbo.jpg

Need For Ports To Have Better Strategy In Getting Business Support
April 29, 2005 23:21 PM




KLANG, April 29 (Bernama) -- The expanding demand in container trade has put the major ports in the country in the same race for business support.

This, according to NCP Holdings Bhd's chairman Tan Sri Dr Ahmad Sarji Abdul Hamid, has resulted in the ports relating to the market in a splintered fashion and overlapping with each other in going after client support.

"Perhaps the time is right for a review on this matter and to develop a strategy that can generate the best net outcome for the nation," he said at the official opening of Berth 14, Container Terminal 3 (CT3), Northport here, Friday. NCP Holdings is the owner and operator of Northport.

The event was officiated by Prime Minister Datuk Seri Abdullah Ahmad Badawi.

The container trade in the South East Asia region has continued to expand at a strong pace, Ahmad Sarji said, adding that a study indicated that the size of container business is set to further grow on a consistent basis as Malaysia progress towards 2020.

The top two ports in Malaysia, Port Klang and Pelabuhan Tanjung Pelepas (http://www.skyscrapercity.com/showthread.php?t=104939&page=1) had a combined market share of more than 20 percent out of the 40 million TEUs (20-foot equivalent units) of containers during 2004 in South East Asia, placing Malaysia in second spot in terms of country total, he said.

Meanwhile, the CT3, which was completed last month at the cost of RM129 million, is the showpiece of Northport as it is the latest addition to meet the growing demand for container handling facilities at the port.

The new terminal which offers a quay line of 534 meters (Berth 12,13 and 14 measuring 178 meters each) with a draft alongside of 15 meters is designed to meet the growing demand for mega size ships of 8,500 TEUs size capacity and above that require longer quay line and deeper draft.

Along with the development of CT3, about RM20 million has been invested to developed 20 acres of backup land for storage of containers to support the operation of CT3 which brings the total container handling capacity of Northport to 4.0 million TEUs per annum.

Latest data released by the publishers of Containerization International indicates that Port Klang is ranked 13th amongst the top container ports in the world based on throughput volume recorded during the year 2004.

To meet the needs of the mega size carriers to turnaround faster, Northport has installed three units of new super post panamax shoreside gantry cranes and 10 units of Rubber-Tyred Gantry, which cost RM108 million.

Three more super post panamax shoreside gantry cranes are in order and expected to be delivered early next year.

These new facilities are bolstered by a computerised operation control system, which enabled a real-time monitoring in aspect of the operation.

-- BERNAMA

Port Development Will Get Govt's Support, Says Abdullah
April 29, 2005 20:49 PM




http://bernama.com.my/bernama/newspic/bu/port.jpg

WELL DONE… Datuk Seri Abdullah Ahmad Badawi
congratulating Northport Chairman Tan Sri Ahmad Sarji
Abdul Hamid after launching Northport 14 wharf in
Port Klang, Friday. Also present is Transport Minister
Datuk Seri Chan Kong Choy. Pix: Mazlan Samion


PORT KLANG, April 29 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi says that the government fully supports the port operators' plan to develop their ports in a move to turn Malaysian into a renowned shipping hub, but at the same time they must improve their management capabilities.

He wants port operators to be prepared to learn from the experience and success achieved by other ports.

Abdullah said that efforts to increase the ports' capacity and attract more ships should be supported as it could boost import and export activities.

"They have worked hard. I say I agree (to the plan)," he said in officiating Northport 14 Wharfs.

Abdullah said that in order for Malaysia to become a shipping hub, all parties involved in the shipping industry should strive to make it a success amidst competition from other ports in the region and the world.

He said that Malaysian ports did not have any other choice but to enhance their competitiveness in order to continue to be successful.

"The government will support any form of efforts taken to be competitive in order to increase our capabilities," he said.

Abdullah said that a competitive port was not merely measured by its infrastructure facilities, but also by the commitment of all parties to make it a success, including the workers' unions and the workers who should give their best.

Abdullah said that Port Klang, which is now placed at number 13 in the world in terms of container handling, could improve its position.

Port Klang handled 5.2 million twenty foot equivalent units (TEUs) containers last year.

-- BERNAMA

Marine Dept Awards RM15 Mln Contract To NGV Tech To Build Maintenance
April 30, 2005 00:50 AM




SHAH ALAM, April 29 (Bernama) -- The Peninsular Malaysia Marine Department (MARDEP) Friday awarded a RM15.5 million contract to local shipbuilder, NGV Tech Sdn Bhd, to design, build and commission a maintenance and supply ship for the Lighthouses Authority.

The signing of the contract between the two parties was witnessed by the Transport Ministry's Secretary-General, Datuk Zaharah Shaari, here Friday.

MARDEP's director-general, Datuk Raja Malik Saripulazan Raja Kamaruzaman said the contract was awarded to NGV Tech based on its excellent track record and was done through the open tendering process.

The 40-metre vessel which will be owned by the department will be built at NGV Tech's dock in Sijangkang near here, and is expected to be completed in February next year.

-- BERNAMA

Northport Calls For Faster Work On Dredging Works At CT3
April 29, 2005 21:13 PM




KLANG, April 29 (Bernama) -- NCB Holdings Bhd, which operates Northport, has urged the Ministry of Transport to look into speeding up the overdue dredging works on the seabed alongside its Container Terminal 3 (CT3).

Making this call, NCB chairman Tan Sri Ahmad Sarji Abdul Hamid said that it was important so that the CT3 facility would be able to fully function according to its design capacity.

"We need continuing support from the Port Klang Authority in making the CT3 truly capable of servicing the latest generation container vessels it has been designed to cater for," he said at the official opening of Berth 14, CT3, Northport here, Friday.

The event was officiated by Prime Minister Datuk Seri Abdullah Ahmad Badawi.

Ahmad Sarji said that the CT3 was constructed with a design depth of 15 metres based on the ship profile of its customers.

Accordingly, the seabed alongside, up to 50 metres off the berths, has been deepened to 15 meters.

He said to ensure safe and efficient operations of the targeted vessels, it was necessary that a similar depth be guaranteed in the access and manoeuvering areas beyond the 50-metres corridor.

This responsibility rests with the port authority according to the terms of the privatisation agreement and intentions of the Port Authorities Act, Ahmad Sarji said.

Minister of Transport Datuk Seri Chan Kong Choy who attended the event Friday said that his ministry was preparing the paperwork to be tabled to the Cabinet for a resolution on the matter.

He said he was confident that a solution could be found soon.

Abdullah meanwhile said that the government agreed with Northport's proposal to deepen the seabed and that it would not hesitate to approve the proposal submitted by the Northport.

-- BERNAMA

Johor Port 1Q throughput up 5.72%

Johor Port Bhd's cargo throughput rose 5.72% to 7.21 million tonnes in the January-March period from 6.82 million tonnes in the previous corresponding quarter, the port said.

The port operating company said on May 10 that conventional cargo handling rose to 4.86 million tonnes, up from 4.60 million tonnes previously.

Break bulk posted a 27% increase with significant rises in general cargo, drum and bagged cargo.

The dry bulk sector also recorded strong growth of 15% to 1.04 million tonnes compared with 909,829 tonnes a year earlier.

Total liquid cargo handled during the period amounted to 3.26 million tonnes, due to a significant increase in the handling of edible cargo including palm oil and soya beans, which increased 16% and 54% respectively.

Johor Port said its container handling rose 4.58% to 199,280 TEUs (twenty-foot equivalent units) from 190,559 TEUs a year earlier.

For 2005, the port said it was confident of handling more cargo than the 28.2 million tonnes last year. It has the capacity to handle up to 50 million tonnes of cargo a year.

Tg Langsat to build RM66m tank farm for new client
By Jimmy Yeow


Tanjung Langsat Port Sdn Bhd, a subsidiary of Johor Corporation Bhd, has scored a coup by getting a major oil trading company to shift the bulk of its tanking operations from Singapore to the relatively new port in Pasir Gudang.

On its part, Tanjung Langsat Port would invest RM66.50 million for a 100,000 cubic metre tank farm to cater for the oil trading company Trafigura Pte Ltd's needs, Johor Corp chief executive Tan Sri Muhammad Ali Hashim said.

Speaking at the signing of the deed of commitment between the port operating company and Trafigura in Kuala Lumpur on May 10, he said Trafigura would utilise the tank facilities when completed by early 2008.

Speaking to reporters later, Muhammad Ali said the port would borrow from the banks to finance the construction of the tank facilities.

Trafigura is a major global energy and commodities trading company. Its current regional operations are conducted from Singapore and with this commitment, it will shift a major portion of the operations to Tanjung Langsat Port.

“We have been operating at the 150,000 cubic metre tank farm facility in Singapore for the past seven years to serve the Indonesian, Vietnamese and Thai markets," said Trafigura managing director Ichiro Tokuhashi.

"There is limited space for expansion and operational cost is also rising in Singapore,” said Tokuhashi said on why Trafigura chose Tanjung Langsat for its tanking operations.

“At the same time, we found out that Tanjung Langsat Port, which is strategically located, is also developing a tank farm. We will start with 100,000 cubic metres to handle mainly gasoline and hope to double it (the capacity) if business is successful,” he said.

“We also hope that Tanjung Langsat Port would expand its facilities to cater to our other products like diesel,” he said. Trafigura handles 2.5 million barrels of gasoline in Singapore monthly.

Muhmmad Ali said Johor Corp had invested RM400 million in the development of Tanjung Langsat, off Pasir Gudang, and a further RM80.90 million through its subsidiary Tanjung Langsat Sdn Bhd for the necessary port facilities and supporting infrastructure.

He said the Tanjung Langsat Port was at the same time promoting the hub for non-edible liquid cargo such as petroleum products, petrochemicals and oleochemicals.

The port is also leveraging on Pasir Gudang, with the world’s largest palm oil refining capacity and highest concentration of oleo-chemicals industrial capacity.

Four such plants in Pasir Gudang are producing 370,000 tonnes of oleo-chemicals annually and the output would increase to 500,000 shortly, Muhmmad Ali added.

He said the port was also gearing up to develop an integrated regional marine support base to serve the growing offshore oil and gas industry in the region.

“We have started negotiations with several companies and would welcome proposals from other potential users to jointly explore new business opportunities,” he added.

Strong response to Port Klang Free Zone


MALAYSIA'S first free zone managed by Dubai has received very strong response in the form of letters of intent even before its completion, Dubai-based daily Gulf News quoted top officials last Thursday as saying.

With more than 35% of the infrastructure in place, the zone will be ready to sign lease agreements later this year, said the officials.

Transport Minister Datuk Seri Chan Kong Choy, in his address to potential investors at a seminar in Dubai yesterday, urged Dubai-based companies to consider investing in the Port Klang Free Zone (PKFZ).

His visit came less than a year after the Jebel Ali Free Zone Authority (Jafza) International, the Dubai-based international free zone operator and a division of Dubai International, was awarded a 15-year contract to develop, manage and market the PKFZ.

Chan said the Malaysian Government was investing US$350mil (RM1.33bil) to develop the first phase of the free zone, which will be ready by the middle of next year.

The zone, which spreads over 400 hectares, is patterned after Jafza and will accommodate logistics operators and light, medium and heavy manufacturers.

More land was available if demand called for further expansion, the minister said.

The zone had already received eight to 10 letters of intent and many more had expressed interest, said Mohammad Sharaf, managing director of Dubai International, the government arm overseeing international free zone and port management operations.

Sharaf said PKFZ would remain competitive and its leasing and operational structure would be patterned after Jafza.

Malaysia had three free zones, of which PKFZ was the country’s first and only one combining commercial and industrial activities and catering to all of South Asia, Chan said.

In expectations of substantial growth when PKFZ becomes operational, Port Klang’s capacity was being increased from seven million twenty-foot equivalent units (TEUs) to 10 million over the next three years, said the minister.

The quay line was being expanded by 2.4 kilometres, giving the port the additional TEU capacity, he said. – Bernama

MMHE To Focus On Marine And Heavy Engineering Business


JOHOR BAHRU, May 9 (Bernama) -- Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), formerly known as Malaysia Shipyard and Engineering Sdn Bhd, will now focus on expanding its marine and heavy engineering business.

MMHE is a 65 percent-owned subsidiary of Malaysia International Shipping Corporation Bhd (MISC), which, in turn, is a 62.44 percent owned subsidiary of Petronas.

MISC increased its stake in MMHE after the Kuok Brothers and International Marine Carriers decreased their share to 17.5 percent each in March 2004.

Petronas president Tan Sri Hassan Marican said MMHE aspired to become a regional player in heavy marine engineering and deepwater support services for the petroleum industry.

He added that it also intended to be a centre for liquefied natural gas (LNG) ship repairs and dry-docking as well as a one-stop centre for ship conversions.

"The opportunities for growth are promising as the petroleum industry in the Asian region is expected to continue remaining vibrant, especially in the deepwater sectors in Malaysia and Indonesia," Hassan said.

"Additionally, other regions such as Africa and South America are offering substantial opportunities in the floater markets," he said before launching the rebranding of MMHE, here Monday.

Hassan said in order to fully capitalise on these opportunities, MMHE and MISC need to continue working together to enhance their presence in the floating, production, storage and offloading (FPSO) and the floating, storage and offloading (FSO) markets, making Malaysia the regional centre for deepwater support services.

MISC is the largest single owner and operator of LNG tankers and the second largest owner and operator of the Aframax tankers in the world.

As part of its business expansion, MISC has embarked on the offshore business to become the owner and operator of FPSO and FSO vessels, paving way for MMHE to harness and capitalise on the synergistic benefits arising from the MISC business.

"In this context, MMHE's current involvement in the development of Malaysia's maiden deepwater field Kikeh, offshore Sabah, is a step in the right direction. This deepwater field will see the introduction of the SPAR technology in this region for the first time," he said.

Hassan said another area of focus was the LNG ship repairs and dry docking, as global demand for LNG was expected to increase from 130 million tonnes per year presently to about 210 million tonnes annually by 2015.

The increase in global demand would also result in the increase of LNG tankers, he pointed out.

"Positioned strategically along the route between the producing countries and the North Asian market, MMHE is in a position to capitalise on this advantage," he said.

Hassan said in the last three years, MMHE has been able to successfully repair and dry-dock several LNG tankers to the satisfaction of the tanker owners and gas buyers.

"While it has been successful, it has not been able to fully tap its full potential despite its strategic location in this region and the increase in the Malaysian-registered shipping entourage," he said.

He added that it was disappointing to look across the Straits of Johor, and see a hive of activities taking place in the facilities belonging to MMHE's competitors, where a large number of Malaysians were employed.

Hassan said although Petronas and MISC would continue to support MMHE, the company must prove that it would be able to deliver quality service at competitive prices.

"While being part of the group is a privilege, it would not necessarily guarantee that MMHE would be able to obtain business at any cost. To compete globally, they must be commercially savvy," he added.

-- BERNAMA

MISC: No large capital injection into MMHE
By ZAZALI MUSA in Pasir Gudang, Johor


MALAYSIA International Shipping Corp Bhd (MISC) has no plan to inject a large sum of money into Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), formerly known as Malaysia Shipyard Engineering Sdn Bhd (MSE).

MISC chairman Tan Sri Mohd Hassan Marican said the company together with two other shareholders of MMHE felt that it was immature to discuss capital injection.

He said MMHE had the capacity and ability to strengthen its position in the regional marine and heavy engineering industry without depending too much on fresh funding.

As of March 2004, MISC held 65% equity in MMHE while IMC Enterprise Inc and Kuok Brothers Sdn Bhd each had a 17.5% stake. MMHE has a paid-up capital of RM100mil.

“The most important thing is how we can optimise our capabilities, abilities and resources to further develop the company,'' Hassan said at the unveiling of the new name and logo of MSE yesterday.

With the new brand identity, he said the company would now focus on and expand its marine and heavy engineering business based on a three-prong strategy.

They are building and upgrading deepwater facilities, marine repair particularly LNG/LPG tankers and, marine conversion to Floating Production Storage and Offloading (FPSO).

Hassan said MMHE would phase out its shipbuilding activities within a couple of years as the company could not compete in terms of costs and technology.

“It is better for us to focus on what we know best and are strong in,'' he said.

Hassan said opportunities for growth were promising in the petroleum industry in the region and that is expected to remain vibrant, especially in the deepwater sectors in Malaysia and Indonesia.

He added that other regions such as Africa and South America also offered substantial opportunities.

“MMHE and MISC need to continue to work together towards enhancing their presence in the FPSO and FSO markets, thereby making Malaysia the regional centre for deepwater support services,'' said Hassan.

He said MMHE would improve its competency and competitiveness to elevate the company to the same level as its rivals in Singapore.

Earlier, MISC signed a memorandum of understanding(MoU) with Bergesen Worldwide Ltd to co-operate and explore opportunities in the supply, operation and maintenance of LPG FPSO in Malaysia and worldwide.

It also signed a MoU with Single Buoy Moorings Inc for a proposed acquisition of up to 40% equity interest in FPO Brasil.

M'sia Posts Positive Container Performance For 1Q


PUTRAJAYA, May 11 (Bernama) -- Malaysia registered a positive growth in container handling for the first quarter this year at 2,821,520 TEUs (twenty-foot equivalent units), a rise of 4.4 percent or 119,761 TEUs, Transport Minister Datuk Seri Chan Kong Choy says.

"Port Klang and Port of Tanjung Pelepas (PTP) were the two ports which handled majority of the containers, totaling 2,305.552 TEUs or 82 percent of the total containers managed by Malaysian ports," he told reporters after the Cabinet meeting, here Wednesday.

Port Klang managed the most containers totaling 1,300,508 TEUs or 46 percent of the total while PTP handled 1,005,004 TEUs or 35 percent.

Chan said that in terms of container classification, transshipment contributed 1,694,843 TEUs or 60 percent, exports containers 591,936 TEUs or 21 percent and import containers 534,741 TEUs or 19 percent of the total number of containers handled by Malaysian ports in the first quarter of this year.

He said that the percentage of containers managed by the Penang Port for the first quarter of this year which rose 10 percent, was the highest compared with other ports.

"The increase was due to the imports of empty containers used by manufacturers for cargo exports," he added.

Meanwhile, Chan said that Kuantan Port saw an 18.5 percent decrease in the number of containers handled.

"The decrease was due to the temporary shutdown of factories in December 2004 and this has resulted in a decrease in the demand for imported raw materials," he said.

Based on the number of containers managed by Malaysian ports for 2004 at 11,454,182 TEUs, it is forecast that 13 million TEUs will be handled in 2005, an increase of 13 percent.

-- BERNAMA

MISC to be major global oil & gas player

MALAYSIA International Shipping Corp (MISC) is poised to become a major global oil and gas player with its move to form a joint venture with Bergesen Worldwide Ltd in the LPG Floating Production Storage and Offloading (FPSO) market.

According to a research house, the aggressive expansion in the offshore business could help boost MISC’s compounded earnings growth to 20% from 9.7%.

UOBKayHian Research also raised its target price for MISC to RM28 from RM18 based on the rapid growth in the LPG FPSO market globally in light of the increasing number of gas discoveries in deep-water fields.

“Foreign expertise from Bergesen will lower execution risk and increase MISC’s chances of winning bids overseas,” it added in a research note.

The national shipping corporation has formed a partnership with Single Buoy Moorings Inc (SBM), the world's largest FPSO player, and it is positioning Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) to become Malaysia’s deep-water hub.

MMHE was formerly known as Malaysia Shipyard Engineering Sdn Bhd (MSE).

MMHE will be focusing on expanding its marine and heavy engineering business. It plans to build and upgrade deep-water and marine repair facilities.

“The transformation is taking place via tie-ups with three industry leaders – SBM for Kikeh FPSO, Technip Marine Sdn Bhd for fabrication of Spar platform, and Bergesen for LPG-FPSO, to upgrade MMHE’s design and engineering capabilities.

Technip Marine, through its associated company, Technip Geoproduction, has awarded two contracts for fabrication of the Spar floating production platform hull and topsides under the Murphy Kikeh deep-water oilfield development to MMHE in March.


“In Malaysia alone, we estimate fabrication and conversion works for deep-water facilities to be worth RM10bil over the next five years,” the report said.

It said MISC would participate in one of SBM’s FPSO projects in Brazil, which will transform it from a domestic to an international FPSO player.

With four confirmed FPSO projects in Malaysia, MISC will be the sixth largest FPSO player in the world. Based on the 10 to 15 FPSOs required in Malaysia alone, MISC is set to be among the top three largest in three years.

“This will put it in a strong position when bidding for international FPSO charters, a market that is set to grow 80% in the next three years,” the report added.

As MISC transforms into a major global oil and gas player, its valuation should be benchmarked against valuations for global oil and gas service companies. These companies are trading at an average 2006 price/earnings ratio of 16.7 times.

In addition, MISC’s valuation will drop sharply as it aggressively expands its offshore business. Each FPSO charter won would add an average RM100mil to its bottom line or 5.4 sen to earnings per share.

MISC seen posting 3-fold rise in 4Q profit
By Syed Azman


Malaysia International Shipping Corp Bhd (MISC), the world's largest carrier of liquefied natural gas, is expected to report a nearly three-fold rise in quarterly profit next week, boosted by gains from ship sales.

MISC recently sold 32 bulk vessels to a unit of Greece's Restis group and has said it will book an exceptional gain of US$440 million (RM1.67 billion) from the sale.

Malaysia's second-biggest listed firm, valued at more than US$9 billion, is forecast to post net profit of about RM2 billion for the fiscal fourth quarter ended March 31, compared with RM728 million a year earlier, according to Reuters Estimates.

MISC, 62%-owned by Petronas, is due to announce fourth-quarter results on Monday.

Analysts said they expect operating profit to rise to between RM950 million and RM1 billion from RM780 million a year ago, but less than the RM1.14 billion profit posted in the third quarter.

"Compared to the third quarter, it's down mainly because of weaker tanker rates," said Nik Hadi Mahmood, an analyst with Nomura Advisory Services.

Petroleum tanker charter rates fell more than 50% in the period from January to March, compared with the previous quarter, when prices hit record levels as Opec raised output to match demand.

MISC is expected to double its full-year net profit to a record RM4.62 billion from RM2.29 billion a year earlier, according to Reuters Estimates.

But profit is forecast to drop to RM2.69 billion in fiscal 2005/06 due to an expected softening in shipping rates as new capacity becomes available.

The world's fleet grew by 1.9 million deadweight tonnes, or 1.4%, in the first quarter of this year, according to shipbrokers Clarksons.

Shipping companies ordered a record US$77.2 billion new builds last year, including US$23.9 billion worth of oil tankers and US$14.6 billion of gas carriers, said Clarksons, based in London.

MISC, whose 19 tankers account for a tenth of total world LNG capacity, plans to raise its LNG fleet to 29 by the end of 2008, increasing capacity by 80% to 3.6 million cubic metres.

Most of the LNG vessels are fixed for long-term charter contracts, providing the group with strong and stable earnings. The LNG business accounts for 70% of MISC's earnings.

MISC, which also has a fleet of 50 crude oil tankers, has eight more very large crude carriers (VLCCs) on order to add to its current fleet of five.

Analysts said weaker tanker rates were likely to be mitigated by the contribution from its floating production, storage and offloading (FPSO) business.

MISC, which is close to securing its third FPSO project, on Monday tied up with Norway's Bergesen and Single Buoy Moorings (SBM) of the Netherlands as it eyes overseas contracts.

"MISC is set to become a major global FPSO player, and the FPSO market is going to grow very fast," said Foong Choong Chen, an analyst at brokerage UOB Kay Hian. "Each FPSO charter won would add an average RM100 million to the bottom line."

He expects the FPSO business to contribute about 30% to MISC's operating profit by 2008.

MISC shares have risen 22% since the start of 2005, compared with a 1.4% drop in the main Composite Index. The stock hit a record high of RM19 this week.

"We are raising our target price to RM28," Foong said.

MISC shares trade at just over 10 times forecast earnings, compared with 16 times for Belgium's Exmar and 14 times for Norway's Golar LNG, its two main LNG carrier rivals in the region.

Among other Asian shippers, Japan's Mitsui OSK Lines trades at a multiple of around nine, and Kawasaki Kisen trades at eight times, though both are chiefly in container shipping. - Reuters

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Tronoh gets RM100m PTP job
13 May 2005 9:49 AM
By Toh Lye Huat



Tronoh Consolidated Bhd, which announced plans to develop a major apartment project in Kuala Lumpur and a power plant in India this week, is believed to have been awarded a RM100 million job by Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) to build new wharves.

It is learnt that Tronoh’s subsidiary Zelan Construction Sdn Bhd was picked for the job over several other major construction groups based on its track record.

It had built power plants here and in Singapore besides delivering several other infrastructure-related and marine engineering projects.

The contract, according to sources, involves the construction of two additional berths for the fast growing port in Johor and stipulates that the contractor has to complete the berths in 15 months.

Zelan Construction is already engaged in some activities in the area including the setting up of a base near the Port of Tanjung Pelepas besides being a partner for the multi-billion ringgit Tanjung Bin power plant.

Another advantage for Zelan Construction is that the owner of PTP is Malaysia Mining Corporation Bhd, which is a shareholder of Tronoh.

Plans are afoot for the Port of Tanjung Pelepas to put in more docking facilities in anticipation of increased cargo volume, the sources say.

To ensure the smooth flow of the port’s operations in view of the expected rise in traffic, industry observers say PTP wants to expedite the completion of the new berths.

On May 9, Tronoh teamed up with the CapitaLand Group of Singapore, a leading listed property company in Asia, for its proposed RM400 million apartment project near the Petronas Twin Towers.

The next day, it announced the signing of a letter of intent with independent power producer Lanco Amarkantak Power Private Ltd to build a RM760 million 300MW plant in India.

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Tanjung carving a niche
23 May 2005 10:13 AM
By Alfean Hardy


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Second Board-bound Tanjung Offshore Bhd, a Petronas licence holder, is carving out a niche for itself in the intensely competitive oil and gas services sector.

Tanjung managing director Omar Khalid, who is a co-founder of the group, is unfazed by the intense competition and its heavy dependence on its main customers to generate income.

“Some companies are single-product companies. We are a multi-product company in a niche market. The product we carry is niche.

“Maybe, three or four people will participate in a tender. We try to be in that group rather than be in a tender where 50 companies are making a bid,” he tells FinancialDaily.

Tanjung’s subsidiaries and associated companies provide integrated services to the oil and gas sector. The group’s forte is in providing engineering equipment, marine services and maintenance services.

Omar says the company’s future is one of consolidation and gradual growth especially after its listing scheduled for May 26. Its issue of six million shares at RM1.30 per share for the
Malaysian public was oversubscribed 18.68 times.

Tanjung’s top-five customers — Sarawak Shell, Talisman, ExxonMobil, Petronas Carigali-Project Team and Sabah Shell — account for 93% of the group’s revenue. It has contracts with Asean Bintulu Fertiliser, Malaysia Shipyard Engineering, Murphy Oil and Petronas Penapisan.

Tanjung supplies valves, compressors and centrifuges to oil and gas platforms. It provides undersea and marine vessel services and maintenance work on advanced engineering equipment at its support centres in Kemaman, Miri and Manjung. A fourth is being planned for Labuan.

Omar believes in ploughing most of Tanjung’s revenue back into the company for even greater growth. It has been the company’s policy since its inception 15 years ago.

“In our case, we invest in the assets to do the job. We invest in the buildings and in the people. We invest in human resources,” he adds.

On another level, Omar is a great believer in having open channels of communication within the group. He says it allows his staff to have a high degree of autonomy while allowing him to “be in the loop”.

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GBridge unit to sell 12 luxury boats in 2 years
23 May 2005 10:29 AM
By Tamimi Omar


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Destini Marine Sdn Bhd, the marketing arm of Gold Bridge Engineering & Construction Bhd (GBridge), targets to sell 12 pleasure boats with an estimated sales value of RM27 million by end-2006.

It has already received confirmed orders for three pleasure boats and expects to sell another two this year with the rest of the sales target to come from 2006.

Destini Marine managing director Zaienal Abidin Omar says the five boats cost an average of RM2.2 million each.

“We have the advantage of price, with our 46-foot boats selling at around RM2.2 million per boat, half the price of similar boats on the market. We think we can make good sales both locally and internationally,” he tells FinancialDaily.

Zaienal says Destini Marine also has excellent after-sales service as it provides docking facilities in Port Klang and in Langkawi and provides skippers for boat owners.

He says Destini Marine, which manufactures and repairs pleasure boats, is able to produce seven types of pleasure boats to cater to the needs of its buyers.

Zaienal says the company would contribute positively to the group in the next few years, and that it has plans to market its boats overseas.

He says it is in talks with an Australian company to set up a branch there while negotiations are being held with another company for a possible partnership in Dubai in the United Arab Emirates.

He adds that there are better sales opportunities in these countries given the matured high-end boating industry there. “The sales volume there is very high, and we think our competitive price will be to our advantage in these countries.”

Zaienal expects the overseas contributions to eventually surpass local sales.

M'sia-Japan Tie-Up In Marine Technology
June 01, 2005 18:55 PM


KOTA KINABALU, June 1 (Bernama) --A Japanese university and Malaysia's Marine Fishery Resources Development and Management Department (MFRDMD) have embarked on a joint research and training programme in marine technology.

The tie-up between the National Fisheries University of Japan (NFUJ) and the MFRDMD are expected to pave way for the transfer of technology especially in 'mid trawl' to local fishermen.

The programme, jointly undertaken between the university from Shimoneseki and Southeast Asian Fisheries Department Centre (SEAFDEC)'s Kuala Terengganu-based department (MFRDMD), was launched in Sarawak waters today, involving two vessels, TS Tenyo Maru owned by NFUJ and KK Senangin II of the Malaysian Fisheries Department.

Speaking to reporters after launching the programme, SEAFDEC's Council Director for Malaysia Datuk Junaidi Che Ayub said mid trawl was at present not widely used by local fishermen.

Mid trawl is a type of fishing trawl used by fishermen in developed countries like Japan to catch pelagic fish (ikan pelagik), fish which swim in groups like giant threadfish (senangin) and striped mackerel (kembung)" near the surface of the ocean.

Junaidi who is also the Director General of the Fisheries Department said local fishermen usually used purse-seine (pukat jerut) to catch the pelagic fish while most of the trawls used were meant to catch fish which lingered near the seabed.

He hoped staff of the Fisheries Department would enhance their knowledge in the new equipment through the training programme and would be able to teach local fishermen on the new fishing technology.

The training programme involves four university scientists, 23 crew on board the Tenyo Maru and about 22 department staff on board KK Senangin II.

Besides focusing on the fishing gear, he said the two-week collaborative work would also involve acoustic survey and oceanographic study in the Sarawak waters.

The Bangkok-based SEAFDEC was formed 37 years ago with all the 10 Asean member countries --Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam --as its members, plus Japan and MFRDMD. The department was set up to provide assistance to SEAFDEC member countries in sustainable development and management of marine fishery resources in South East Asia via research, training and information dissemination.

The event was also attended by NFUJ's Chief Scientist Dr Akira Hamano, Chief of SEAFDEC-MFRDMD Raja Mohammad Noordin Raja Omar, and Director of Sarawak State Planning Unit Director Mohd Morshidi Abdul Ghani.

-- BERNAMA

Malaysia To Take Delivery Of Submarines In 2009
June 11, 2005 12:24 PM
From Jamaluddin Muhamad



CHERBOURG (France), June 11 (Bernama) -- Malaysia will take delivery of its two Scorpene submarines in 2009, Deputy Prime Minister Datuk Seri Najib Tun Razak said here.

He said one of the submarines was expected to arrive in the country in the middle of that year and the other at the end.

Najib, who is also Defence Minister, said the construction of the two submarines was proceeding according to schedule, with 35 per cent of work completed.

He spoke to Malaysian journalists after a visit to the construction site at the DCN dock here, about 300 km from Paris, yesterday.

The two submarines are being built jointly by DCN International, the French shipbuilder, and Izar, the Spanish shipbuilder.

Although the first of the submarines could be ready in early 2009, delivery would only take place in the middle of the year after personnel from the Royal Malaysian Navy (RMN) had completed their training in handling the craft, he said.

Seventy RMN personnel have just started training at the Malaysian Submarine School at the DCN marine base in Brest, about 500 km from Paris.

"The submarine programme enables Malaysia, as a maritime and trading nation, to have the additional capacity required of the RMN.

"Submarines have the force multiplier not found in ordinary vessels. It gives high deterrent value to the country," said Najib.

He also said that the government would not compromise on the quality and the four-year period of training for the RMN personnel who would handle the submarines.

He said the government would not be too anxious to take delivery of the submarines though they would be ready in early 2009.

Asked about media reports that the submarines were scheduled to be completed in 2008, Najib said: "The construction is proceeding according to schedule and they will be completed on schedule. Only the training of the personnel has been delayed a little, due to a delay in the signing of the agreement on the training."

Najib said only 31 crew was required to handle a Scorpene, the world's most sophisticated conventional submarine.

Overall, a total of 156 personnel would undergo training, he said, adding that the additional number was to accommodate the manpower needs of the submarine unit.

Najib also said that the trainees would be given three weeks of leave after every four months of training, contrary to the provision of the original contract where they would be allowed leave only after every eight months of training.

He also said that the government was looking into the payment of a special allowance for submarine crew.

Earlier, Najib visited the RMN trainees in Brest and joined them for Friday prayers at the school.

Nine RMN officers are monitoring the construction of the submarines in Cherbourg.

Asked for the names of the submarines, Najib said they were under consideration. He said the submarines would be based in Teluk Sepanggar in Sabah.

Meanwhile, DCN International Programme Director for the Malaysian submarines project, Philippe Novelli, told Malaysian journalists the forward and hull parts of the two submarines were being built here and the aft part in Cartegena, Spain.

The final assembly for the first submarine would be done here and the final assembly for the second submarine in Cartegena. Construction of the submarines began in 2003 after the Malaysian government finalised the contract to purchase them in June 2002.

Novelli said the diesel- and electric-powered submarines would be equipped with Black Shark torpedoes and SM-99 guided missiles which could be launched from below water.

"They are able to handle anti-surface and anti-submarine warfare," he said.

DCN International provides transfer of technology through training, which includes simulator and a refurbished Agosta submarine used as a platform for training. The Agosta is similar to the Scorpene submarine. The Scorpene's overall length is 66.4 metres and it has a maximum speed of 20 knots and underwater endurance of 45 days.

Also present during Najib's visit were Chief of Navy Admiral Datuk Illyas Mohd Din and Malaysia's Ambassador to France Datuk Hamidah Mohd Yusoff.

Later, Najib attended a reception with the Malaysian community here.

-- BERNAMA

Submarines ready by 2009
Sunday June 12, 2005
BY CHOI TUCK WO



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Najib getting a first-hand view of the pressure
hull of the Scorpene submarine at the assembly facility
in Cherbourg, France, on Friday.


CHERBOURG (France): The pride of the nation – Malaysia's first submarine is expected to cruise home, manned by the country's first ever submarine crew by the middle of 2009.

Work on the Scorpene submarine project, involving two state-of-the-art underwater vessels, is about 35% complete with the first scheduled for completion by early 2009 and the second, about six months later.

Deputy Prime Minister Datuk Seri Najib Tun Razak said he was satisfied with the progress of the Royal Malaysian Navy’s submarine programme.

Armaris, a joint venture of French shipbuilder DCN and Thales, is the prime contractor for the Malaysian submarine programme.

Najib, who spoke to Malaysian journalists after visiting DCN’s submarine assembly facility here, about 400km west of Paris, on Friday, was briefed by DCN’s director of warships and systems Pierre Quinchon and submarine project director Eric Pavolee.

He later visited the Chilean Scorpene submarine, O’Higgins.

Najib, who is also Defence Minister, accompanied by navy chief Admiral Datuk Ilyas Din, had flown in from Brest where he held a dialogue session with about 70 Malaysian trainees at DCN’s submarine training school.

Apart from classroom and simulator lessons, the Malaysians were also given hands-on training on board the French navy’s former submarine, Quessant SSK.

Najib said the construction of the submarines was proceeding according to schedule although there had been a slight delay in the training.

However, Najib said the trainees will not cut short their training, despite the delay.

“We will not compromise on the quality of our trainees by cutting short the four-year training programme just to speed it up, as this is a very important and sensitive project for Malaysia.”

In this respect, the transfer of technology involving underwater training and its related aspects would be given priority, he added.

Najib said that about 150 Malaysian navy personnel would eventually be trained to handle the submarines, which would be based in Sepanggar Bay in Sabah.

He said a submarine base was under construction in the area, which was best suited for such vessels’ due to its deepwater harbour facilities.

The Deputy Prime Minister added that the French trainers had expressed satisfaction with the trainees’ capabilities in operating the submarines.

In appreciation of their diligence and commitment to the programme, Najib said he had given approval for them to return to Malaysia on three weeks’ leave after completing four months of training although the contract stipulated that they would only get home leave after eight months of training.

Najib said the move was also made on humanitarian grounds to enable the trainees to be with their families.

To another question, he said only about 30 crew members were required to operate each submarine.

He added that several aspects of the submarine programme have to be reviewed, including the special allowances for the submariners. He said the Government would hold discussions with the relevant agencies to decide on a fixed allowance for them.

Later, Najib attended a reception with the Malaysian community here, which comprised mostly family members of the trainee submariners.

Sarawak Maritime Academy Ready By December
June 28, 2005 12:21 PM



SIBU, June 28 (Bernama) -- Sarawak is to have its own maritime training academy by December this year.

State Second Finance Minister Datuk Seri Wong Soon Koh performed the earth-breaking ceremony at the former Public Works Department's divisional office at Upper lanang Road here Tuesday.

He said the RM11.5 million academy, to be known as the Sarawak Maritime Academy, would be the second in the country, after the Malaysian Maritime Academy in Melaka.

Wong said two internationally recognised maritime organisations from the Philippines -- the Philippines Maritime Foundation Incorporation and the Fame Maritime Foundation Incorporation -- were helping to set up the academy and to organise its courses and syllabus.

"The academy will be recognised by the International Maritime Organistation which is a body of over 90 countries.

"We will allow the Filipino experts to run the academy together with some qualified Malaysians but five or six years later, locals will take over," he said.

He said it would begin basic three- to five-month courses for about 50 residential participants before looking into organising diploma and degree courses.

Wong said the academy would train Malaysians and those from the Asean countries and eventually, the Asian countries, as world-recognised seafarers.

Speaking to reporters later, he said about 20,000 people in the state were involved in maritime occupations and only about 5,000 were officially recognised.

He said Sarawak needed to produce 12,000 to 13,000 seafarers each year due to the high demand and the establishment of the academy would serve this purpose.

-- BERNAMA

China Shipping makes Malaysia its container regional hub
By Alfean Hardy, 01 Jul 2005 11:37 PM



China Shipping Group Company, a China government owned company, has closed its regional office in Singapore and shifted its operations to Malaysia with the opening of its unit, China Shipping Regional Holdings Sdn Bhd.

China Shipping, the eighth-ranked shipping company in the world with 167 offices in 76 countries, has a fleet of 400 vessels with a combined 11.5 million deadweight tonnes (DWT).

It has had a presence in Malaysia since 2000 when it shifted its container transhipment hub to Port Klang.

The Malaysian company would oversee Malaysia, Singapore, Thailand, Myanmar, Vietnam, Indonesia, the Philippines, Cambodia and Bangladesh.

Speaking to reporters after the official opening of the office in Kuala Lumpur on July 1, China Shipping vice president Zhang Guo Fa said the shift to Port Klang was on expectations that China-Malaysia trade would continue to increase.

�The Straits of Malacca is also very strategic for us and, besides, all our ships go through Port Klang anyway. Westport is very efficient and that�s where the business is.

�The three fastest growing regions for us are the Far East to North America route, the Far East to Europe route and the Asia Pacific region,� he added.

A company official said China Shipping�s intention to be the third largest fleet in the world by 2010 also necessitated a shift to facilities with larger capacities and lower cost to handle the larger traffic.

Transport Minister Datuk Seri Chan Kong Choy applauded China Shipping's decision as a recognition of Kuala Lumpur's friendly business policy and the port facilities in Malaysia.

�As a very major shipping line, they only move to ports that give them the best services, the best infrastructure and ports with very high productivity; all these we have especially in Port Klang, Westport and Tanjung Pelepas.

�The Malaysian government, through the Transport Ministry, will continue with our supply-driven policies and continue to expand our facilities and capacities with the major Malaysian ports and also many other measures to make our ports competitive in the region and around the world,� he added.

Chan said expansion at Port Klang, Westport and Tanjung Pelepas, which included dredging to deepen the three ports, was ongoing.

Westport can better Singapore Port: Gnanalingam
01-07-2005
By Alfean Hardy




Westport Malaysia can match or better its regional rival Singapore Port in terms of turnaround and productivity, said its executive chairman Tan Sri G. Gnanalingam.

“Shipping is looking for fast turnaround and good productivity. Singapore made its reputation on that but now Westport can outdo Singapore in that. We’ve grown a lot by having more people come to us,” he said.

Gnanalingam was speaking to reporters in Kuala Lumpur after the official opening of China Shipping Group Company’s unit China Shipping Regional Holdings Sdn Bhd on July 1, 2005.

Gnanalingam said there were 35 main shipping lines using Westport’s facilities and they included the Maersk Group, Hanjin Shipping, Evergreen Shipping and China Shipping.

“The container market (in Malaysia) was worth RM2 billion last year and Westport’s market share was 51% of Port Klang’s market. Port Klang’s market share of the Malaysian market is 45%,” he said.

“Singapore is still the leader with 21 million TEUs (twenty-foot equivalent units). Malaysia can only handle 11.5 million TEUs and is eighth or ninth in the region behind the likes of Hong Kong, Shanghai, Pusan and Dubai,” he added.

Gnanalingam alluded that Malaysia still had some way to go before it could challenge Singapore for the top spot but he was confident it could be achieved.

“It’s all about being competent and it’s important to get people like (China Shipping) here,” he said.

“The market is growing and we processed 2.6 million TEUs last year. This year, we hope to reach three million TEUs. (Besides), we actually have excess capacity. We can handle up to six million TEUs,” he added.

Malaysia's Westport Expects Profit to Rise on Cargo From China
Updated : 06-07-2005
Media : Bloomberg
Story By : Adeline Lee



(Bloomberg) -- Westport Holdings Sdn., a Malaysian port operator, expects profit to rise by 18 percent this year as increasing demand for goods from China will bolster container traffic.

Net income from handling containers may increase to 100 million ringgit ($26 million) this year from 90 million ringgit a year earlier, said Executive Chairman G. Gnanalingam.

``China's become the factory of the world,'' Gnanalingam told reporters in Kuala Lumpur. ``There's a lot of Chinese goods from manufacturers coming to Port Klang via Westport before they go to Europe.''

Port Klang-based Westport aims to handle 3 million 20-foot containers this year, an 18 percent rise from 2004. It expects to handle 5 million 20-foot containers by 2010, Gnanalingam said. China's exports of electronics, cell phones and other goods to the U.S. and Europe have been benefiting Singapore's PSA International Pte, Hong Kong's Hutchison Whampoa Ltd. and other port operators. Exports of the world's fastest growing major economy rose 33 percent in the first five months of the year.

Westport is competing with another Malaysian port operator, the Port of Tanjung Pelepas in southern Johor state, which is Malaysia's second-largest port operator by volume. Port Klang handles 5.6 million 20-foot containers a year, while Port of Tanjung Pelepas manages 4 million 20-foot containers, Gnanalingam said.

Westport, which counts China Shipping Group Co. and Taiwan's Evergreen Marine Corp. among its customers, posted a 16 percent rise in revenue to 285 million ringgit for the six months to June, Gnanalingam said. He declined to provide a revenue forecast for the full year.

Port Expansion

The privately held port operator spent 300 million ringgit this year, the same amount it spent last year, to boost services and its ability to handle more containers. Westport bought 12 quay cranes and four yard cranes, Gnanalingam said.

Westport is expanding at a time when shipping companies such as China Shipping Group, the nation's second-largest shipowner, is moving its regional office to Malaysia from Singapore to cater to rising demand.

Khazanah Nasional Bhd., Malaysia's state investment arm, controls 8.6 percent of Westport.

Evergreen Marine and Maersk Sealand, a unit of Denmark's A.P. Moeller-Maersk A/S, are among shipping lines that have switched to using Malaysian ports as their Southeast Asia stopover, lured by cheaper port charges. Port Klang sits on the west coast of Malaysia's peninsula, along the Strait of Malacca, one of the busiest shipping lanes in the world.

Malaysian ports have an annual capacity capable of handling 11 million 20-foot containers, compared with China's capacity at 60 million, Gnanalingam said.

More Shipping Lines To Join Westport By Year-end
Updated : 06-07-2005
Media : Bernama



Westport Malaysia expects to have an additional 11 services from various shipping lines in the next six months.

"We have the capacity to handle up to six million boxes now. We have room for many more shipping lines to come," Westport's executive chairman Tan Sri G. Gnanalingam told reporters at a press briefing here Wednesday.

He added that with further development, Westport could handle more than 10 million TEUs (twenty-foot equivalent units).

"It's better to be supply-driven by having the infrastructure and facilities ready," he said.

Westport has a steady stream of customers like Hanjin, Evergreen Marine, American President Line and Maersk Sealand as well as transhipment services from CMA-CGM, China Shipping Line, Goldstar and Norasia.

"These companies started with us (handling) around 10,000 to 15,000 boxes. Now CMA-CGM is doing 100,000 boxes, China Shipping Line has grown to 500,000 boxes, Goldstar 300,000 boxes and Norasia 350,000 boxes," Gnanalingam said.

He added that last month, Westport inked a long-term agreement with CMA-CGM for the France-based line to use the port as a key Asian transhipment hub for the next 15 years.

China Shipping Line has also moved its regional office to Westport from Singapore and is expected to increase its shipping activities from Port Klang this year.

"Westport is also the largest transhipment hub for Norasia," Gnanalingam said, adding that the port has also secured several new customers such as Maruba Lines and ANL.

Transhipment accounted for 60 percent of the port's business, with the cargo shipments mostly bound for Europe.

Gnanalingam said Westport has invested RM300 million this year for 600-metre and 300-metre berths, 20 hectares of yard, four new cranes, 12 rubber-tyre gantry cranes and 30 prime movers.

"We have the state-of-the-art cranes. Now we have two cranes that can handle two boxes at one time, called the twin lift cranes. We will have another two by end of this year," he said.

He said in terms of productivity, Westport registered a record gross crane productivity of 32 moves per hour from 24 moves last year, which is higher than the industry average of 25 crane moves per hour.

Asked whether Westport would be making further investments, Gnanalingam said: "We can have a rest now because we have the capacity to do six million. When we go up to four to 4.5 million, then we will add some more."

Westport is poised to handle three million TEUs this year and it aims to achieve the five million throughput by 2010.

Operated by Kelang Multi Terminal Sdn Bhd, Westport constitutes one half of Port Klang and has 51 percent market share of the Port Klang market.

Malaysia's Johor Port Sets up Cargo Transport JV
Updated : 15-07-2005
Media : AsiaPulse



Asia Pulse - Johor Port Berhad's (KLSE:6416) wholly-owned subsidiary, JP Logistics Sdn. Bhd, has signed an agreement with Johan Shipping Sdn. Bhd to set up a joint venture to transport open market cargoes.

The JV firm, known as Whale Shark Maritime Sdn. Bhd., will use rice as a catalyst to bolster intra-regional shipping of the cargoes, Johor Port said in a statement to Bursa Malaysia.

It said that under the joint venture, the partners will be able to provide an extensive network at competitive rates to their customers.

Johan will subscribe for an 80 per cent stake in the joint venture firm, which will have an authorised share capital of RM1 million (US$263,159) and an issued and paid-up share capital of RM100,000. The balance of 20 per cent will be held by JPL.

JPL's subscription will be funded from internally generated funds.

JPL is mainly involved in providing warehouse and office space, rendering cargo and container handling and freight forwarding as well as container repairs and maintenance and yard operations.

Johan is principally involved in domestic shipping operations as well as coastal shipping in Sarawak.

Rotterdam gets Malaysian help
Updated : 08-08-2005
Media : Business Times



MALAYSIAN ports, handling increasing volumes of transshipment containers, are now emerging as one of the fastest-growing sources of growth for Rotterdam Port in The Netherlands.

Collectively, the total volume of containers to Rotterdam rose by a hefty 37 per cent totalling 275,778 twenty-foot equivalent units (TEUs) last year, contributed mainly by traffic from Port Klang comprising Northport and Westport and Port of Tanjung Pelepas in Johor.

The increase in the volume of container traffic from Malaysian ports to Rotterdam has been attributed not only to the surge in transit containers, but Malaysia¡¦s own export trade which is developing healthily with Europe.

During a recent visit by the Prime Minister Datuk Seri Abdullah Ahmad Badawi to Rotterdam, opportunities were offered to Malaysian exporters to use the leading European port as a staging point to enter interior markets in northern and eastern Europe.

Inland connections via Rotterdam to reach inland economic regions are rated as one of the best in the region as the port offers excellent modal connectivity that includes feeder shipping, block trains, as well as a good riverine barging system linking markets in eastern Europe.

Rotterdam plays an important role in the European import and export market.

A significant percentage of the cargo coming into the port is processed at the port.

Some examples are the refining of oil, the production of synthetic materials, the striping and stuffing of containers, the putting together of cargo packets et cetera.

Then, the (semi-finished) products are moved to large industrial centres elsewhere.

The port also plays an important role in the export of products to European countries overseas and intercontinental destinations such as the US and the Far East.

The rise in trade between Malaysian ports and Rotterdam has also been boosted by recent trends in shipping notably the string of services offered by some of the shipping firms and alliances with the mega-sized carriers that make Rotterdam the first port of call after Port Klang and the last port of call before Port Klang in the Europe-Asia trade.

According to the Department of Statistics, the recent increase in Malaysia¡¦s export via Rotterdam is reflected in June 2005, which totalled a sizeable RM1.38 billion, compared with only RM800 million exported to the UK, a traditional trading partner. PortsWorld

Port Klang Aims For New Look With RM400 Mln Port City Project
Updated : 09-08-2005
Media : Bernama



Port Klang is set to transform into a tourist attraction with its RM400 million Port City development project scheduled to kick off by end of the year, Port Klang Authority chairman (PKA) Datuk Yap Pian Hon said.

The Port City project would see the beautification and cleaning up of the port town and surrounding areas and the development of a tourist centre as well as other facilities and the eradication of squatter areas.

He said the privatised project would take off once the more than 1,000 squatters in the area are relocated in line with the Selangor state government's vision to have zero squatters.

Yap said PKA, which overseas the Westport and Northport operations here, has taken the sprucing of the port area as a priority in its agenda.

The port authorities including Westport are planning in detail the activities that would attract more shipping companies and tourists to the port town, he told reporters after officially launching Westport's Safety, Health and Environment 2005 Campaign, here Tuesday.

"We would be working with the Klang Town Council (MPK), Selangor state government and Department of Environment to look into enhancing the beauty and cleanliness of Port Klang to ensure that tourists come calling to the port."

He said he would be discussing with MPK and the Selangor State Development Unit on the short and long term programmes to develop Port Klang.

Besides this, the Federal Government under the Ninth Malaysia Plan (9MP), would be also building, through the Ministry of Transport, a flyover to combat traffic problems here, he said.

"KPA hopes construction works on this project would start next year," he added.

UK-listed BPB building factory in Port Klang
Updated : 03-09-2005
Media : Business Times
Story By : MALCOLM ROSARIO


LONDON Stock Exchange-listed BPB plc is building a RM120 million gypsum-based product manufacturing plant in Port Klang as part of efforts to expand its presence in Asia.

The Malaysian plant, which is expected to be operational in the first quarter of 2006, will be positioned to support the demand for BPB's plasterboard in neighbouring Singapore, Indonesia, Brunei and countries in West Asia.

It will also have the capacity to export to Australia and New Zealand, said BPB Malaysia Gypsum Sdn Bhd managing director Paul McCrea.

BPB Malaysia Gypsum is a wholly-owned unit of BPB plc. The latter is a world leader in the supply of plasterboard and gypsum plasters, and a major supplier of insulation, ceiling tiles and related products for interiors.

When completed, BPB's manufacturing plant in Port Klang will have the capacity to make 16 million sq m of plasterboard.

The plant will also house a product innovation centre and training academy aimed at benefiting installers, contractors, original equipment manufacturers convertors and architects.

BPB's plasterboard has a versatile range which caters for specific needs of sound, thermal insulation, fire resistance, moisture resistance and has structural integrity as well as aesthetic appeal.

BPB will offer a complete range of gypsum-based solutions for internal walls and ceilings.

We aim to grow the market in Malaysia by working with developers and architects to create innovative design solutions that meet market-driven performance requirements, McCrea said

When BPB's factory in Port Klang becomes operational, Malaysia will be transformed from a net importer of plasterboard into a net exporter of the material.

The local market currently consumes between 12 million and 13 million sq m of plasterboard per annum, half of which is imported from neighbouring countries.

Besides strengthening its foothold in Malaysia, BPB has also expanded rapidly across Asia, fuelled by strategic acquisitions and excellent volume growth.

With a global market share of 20 per cent, the company is one of the fastest-growing and most profitable companies in its sector.

Troubled Malaysian shipyard to deliver ships soon

Updated : 09-11-2005
Media : Reuters


KUALA LUMPUR, Nov 9 (Reuters) - A troubled Malaysian shipyard aims to deliver two overdue naval vessels to the Malaysian government by the end of this year, the yard's biggest shareholder, Boustead Holdings Bhd , said on Wednesday.

Yard-owner PSC Industries Bhd , controlled by Boustead, has a contract to supply 27 navy patrol boats worth 24 billion ringgit ($6.36 billion) to the government.

Port Klang Free Zone to open ahead of schedule
By Surin Murugiah, 07 Dec 2005 7:56 PM


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(From left) JAFZA International's head of business development Samir
Chaturvedi, Heath, PKFZ chairman Loh Chew June and Datuk Ahmad Bhari
Abd Rahman chatting after the media briefing


Port Klang Free Zone (PKFZ), the country’s first fully integrated free commercial and industrial zone, will be open to investors about a month ahead of schedule in June next year.

PKFZ, modelled after Dubai’s Jebel Ali Free Zone, is designed by JAFZA International, the consulting and management division of Jebel Ali Free Zone Authority. JAFZA will also be managing PKFZ when it is operational.

JAFZA director of international operations Chuck Heath said construction work at the site has been progressing smoothly.

He said the project, which was 74% completed, was slightly ahead of schedule.

Speaking to reporters at a media briefing in Petaling Jaya on Dec 7, Heath said JAFZA was in active negotiations with 33 companies from around the world as potential operators in the zone.

“To have 33 companies engaged in active discussions six months before commencing operations is encouraging. Several of them are in the final stages of talks and we hope to sign on a European multinational soon,” said Heath.

He added that the companies included seven from Dubai and 23 from other countries.

Heath said the initial challenge for PKFZ was in creating global awareness but JAFZA had taken steps since November to intensify marketing activities.

“It will be a highly concerted effort over the next twelve months to promote it,” he said.

Commenting on the success rate of such marketing efforts, Heath cited Jebel Ali's example, where the number of companies had multiplied from 50 in the first five years to some 5,000 after 20 years.

PKFZ chairman Loh Chew June said PKFZ would enhance Port Klang’s position as the National Load Centre.

He said the appointment of JAFZA demonstrated the government’s commitment to make PKFZ a successful catalyst for economic growth not only in Port Klang but also the entire Selangor coastal region.

PKFZ will have prepared industrial sites on which tenants can design and build light industrial units for factories or warehouses and office space at the PKFZ business complex.

The zone would also have other amenities like banks, post office, food court, parking complex as well as on-site customs and immigration facilities.

Among the incentives for companies in PKFZ are tax exemption on statutory income and capital expenditure, double deduction on certain export and research and development expenses as well as 100% profit repatriation.

Port Klang Free Zone gets strong foreign interest
Updated : 08-12-2005
Media : Business Times
Story By : GOH THEAN EU


THE Port Klang Free Zone (PKFZ), Malaysia's first fully-integrated free commercial and industrial zone managed by Jebel Ali Free Zone Authority (JAFZA) International, is getting encouraging response from foreign investors.

JAFZA International director of international operations, Chuck Heath, said it received hundreds of enquiries since its global marketing campaign started in November.

JAFZA International, which also designs and markets PKFZ, is the consulting and management division of JAFZA.

“Now, we are in active negotiations with 33 companies from all over the world. Several of them are in final stages of discussion. We hope to sign a European multinational company soon,” Heath said during a media briefing in Petaling Jaya yesterday.

He added that the response is very encouraging.

'There were only 50 companies operating from the JAFZA after five years of operations. For PKFZ to have active negotiations with 33 companies six months prior to operation, is very encouraging,” he added.

Today, after 20 years in operation, JAFZA has 5,000 companies from 120 countries.

On JAFZA International's target, Heath said it expects 2.3 million sq ft of land to be leased out by end of next year.

To create the global awareness on PKFZ, JAFZA International has embarked on a global marketing campaign. Heath said it has so far participated in two trade shows, and another seven to eight events are lined up for next year.

'We are targeting the global market ... we will be going to US, Europe, Asia-Pacific, West Asia as well as Africa and others. We want to bring in as much foreign direct investment as possible,” he added.

PKFZ, which is currently under construction, will be operational in June next year, one month ahead of its schedule.

PKFZ chairman Low Chew June said the appointment of JAFZA International showed the Government's commitment to make PKFZ a successful catalyst for economic growth not only in Port Klang but also in the entire Selangor coastal region.

Besides PKFZ, JAFZA International has helped Governments develop free zones in Morocco and Djibouti.

The 404.69ha PKFZ is situated next to West Port in Pulau Indah. It offers, among others, 512 light industrial units for factories and warehouses, four blocks of 8-storeys each of business complex, as well as prepared industrial sites.

An exhibition and trade centre, multi-storey carpark, food court, as well as a Custom centre will also be available in the PKFZ.

Star Cruises Plans to Build Hong Kong Cruise Terminal(Update 1)
Updated : 22-12-2005
Media : Bloomberg
Story By : Joshua Fellman and Vicki Kwong



(Adds family connection between Star Cruises, VXL from the sixth paragraph.)

(Bloomberg) -- Star Cruises Ltd., Asia's largest cruise operator, has formed a venture with two Hong Kong-based companies to develop a second terminal for ocean-sailing liners in the city, according to a statement.

Star Cruises and VXL Capital Ltd., a financial services company, will each own 30 percent of the venture while closely held builder Nan Fung Development Ltd. holds 40 percent, VXL said in a statement today without giving financial details.

The three companies are bidding to build new facilities in one of the world's most famous harbors to cater for the record 11 million people who may take holidays on ocean liners this year. Star Cruises, a Malaysian-owned company that sails to 200 global destinations with a fleet of 22 ships, is based in Hong Kong.

``It is the intention of the joint venture parties to submit a tender to compete for the project,'' VXL's statement said. ``The Hong Kong government may go ahead with the cruise terminal development through a competitive bidding process.''

Shares of Star Cruises were unchanged at 26.5 U.S. cents as of 10:11 a.m. in Singapore. The company's Hong Kong-traded shares rose 1.2 percent to HK$2.10.

Lim Family

The venture brings together two members of the Lim family that controls Genting Bhd., one of Malaysia's largest companies with businesses including casino, hotels, power plants, paper mills and oil exploration.

Kuala Lumpur-based Genting owned 0.3 percent of Star Cruises as of Nov. 11 and controlled another 36 percent of the holiday operator through Resorts World Bhd.

VXL Capital, formerly the Hong Kong unit of Singapore's largest publicly traded stock brokerage Kim Eng Holdings Ltd., was sold in Dec. 2003 to Malaysian businessman Lim Chee Wah. Lim is a former Genting Deputy Managing Director until May 2002, according to filings to the Kuala Lumpur Stock Exchange. He is the younger brother of Lim Kok Thay, chairman of Star Cruises, Resorts World and Genting.

Wharf (Holdings) Ltd., a Hong Kong telecommunications and property investor, now operates the city's sole cruise terminal. Companies interested in building a second facility can submit their proposals by Dec. 31, the government said last month.

China-Mediterranean service to strengthen Westport's growth
NST, 16 January 2006

HANJIN Shipping, K Line and Yang Ming Line have jointly started a new service that links Asia's economic powerhouse, China, and the Mediterranean region.

The China-Mediterranean (CMX) service, which began in November 2005, made its maiden call at Westport in Port Klang with the arrival of Hanjin's MV Valencia. Sailing into the port just one day before the New Year, this new service marked the 11th service that was commenced at Westport throughout 2005.

This weekly service is expected to contribute some 4,000 TEUs (20-foot equivalent units) per month to the port's growing volume that had charted a healthy growth of 14 per cent for 2005.

The service will also add to the port's local volume growth, as majority of the containers are local containers. Many shipping liners have started new services particularly in the Asia-Mediterranean route as well as the US-China trade route last year.

Both the regions connected by the CMX service are of importance to the growth of the world trade and this service is an opportunity for Malaysian shippers to tap these fast-growing markets to further boost the business.

The ports of call in this service are Shanghai-Ningbo-Hong Kong-Singapore-Suez-Port Said-Naples-La Spezia-Barcelona-Suez-Port Klang-Hong Kong-Kaohsiung-Shanghai.

Hanjin is deploying four vessels for this service, while K-Line and Yang Ming will deploy two and one vessel respectively.

The CMX service, together with the other host of services that have commenced at Westport, greatly enhances its connectivity to specific international markets that are currently the pulse of the growing world trade.

Westport has not only offered the Malaysian business community a world-class port and services but also one that serves as their link to the world market.

Yatch club services in Malaysia
Penang

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KOTA KINABALU

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Langkawi

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KUCHING, Feb 6 (Bernama) -- Evergreen Marine Corporation, one of the world's largest mainline operators (MLOs), launched a new China-Indonesia-Manila (CIM) service out of Bintulu International Container Terminal (BICT) from December last year, deploying even bigger vessels in the range of 1,812 TEUs (twenty-foot-equivalent-units) capacity.

"The weekly service calls direct at Manila and a few Chinese ports from Bintulu," Bintulu Port container terminal operations senior manager Abdul Nasser Abdul Wahab told Bernama Monday.

Commenting on market talk that the Taiwanese shipping line was scaling down their operators or could even pull out of Bintulu due to load factor, he said: "Naturally the market talk about Evergreen scaling down their operations in Bintulu is totally not accurate."

BICT is also served by one of South-east Asia's leading regional feeder lines Kuching-based HUBLine which also operates weekly direct services from Chinese and Taiwanese ports to Muara, Brunei and Bintulu but deploying smaller vessel capacity.

Shipping sources said HUBLine is likely to make a second call at BICT with a new Singapore-Bintulu service.

BICT, on the northern Sarawak coast, offers alternative direct services to and from North Asia, including Hong Kong, Taiwan and China.

Apart from HUBLine, Evergreen also makes regularly scheduled calls at Bintulu, with boxes fed to local ports Kuching and Kota Kinabalu, as well as to West Kalimantan at Pontianak.

It also sends boxes to other points by smaller lines. BICT is East Malaysia's single largest container port but handled a modest 150,000 TEUs, only a marginal increase from the previous year.

Abdul Nasser said that he expected growth to improve this year, with optimism based on growing containerisation of timber products such as middle-density fibreboard from the timber-rich Bintulu region.

Senari Container Terminal in Kuching was not far behind, handling 143,000 TEUs, but a shallow draught constrains growth.

The region's imports/exports to and from North Asia also go through Brunei's PSA-run Muara Port, which is competing with BICT by offering better rates for regional operators.

Although growth in box traffic was modest in 2005, expansion projects are proceeding as planned.

-- BERNAMA

Westports Creates World Record Of 421 Moves Per Hour


KUALA LUMPUR, Feb 10 (Bernama) -- Westports Malaysia has again created history by setting a new world record of 421 moves per hour, shattering its previous record of 368 moves per hour achieved three years ago.

The record move was achieved when moving boxes from the MV Rossini which was at the berth for a total of 11.5 hours.

This is the fourth world record set by the port in a span of seven years, where it had moved 264 boxes per hour in 1999, Westports said in a statement here Thursday.

CMA-CGM is in the midst of setting up new service routes and had picked Westports to handle this major shift involving three vessels namely M.V Rossini, M.V Voltaire and M.V Verlaine.

The operations team worked round the clock elevating the vessel productivity to a new level resulting in the ports highest achievement so far.

Deploying seven quay-cranes, the operations team accomplished a new target of 421 mph with all 7 quay-cranes achieving 60 mph.

The overall vessel productivity reached was 272 mph and a crane productivity of 54.5 mph.

This was due to less cranes being used after the first two hours, declining further to only three cranes in the last four hours, Westports said.

CMA-CGM's Regional Manager, Chris Storer commended the port which for the second time created world record whilst working on the French liner.

"The productivity achieved over such a large volume of moves over the vessel further enhances Westports reputation as a leading container terminal and is a milestone performance in the industry," he said in the statement.

Westports said that this performance was even more creditable since all boxes handled were laden units.

The commitment and dedication of the staff in planning and execution of this operation augurs well for the future of the terminal in its continuing endeavors to meet the customers ever growing needs," Storer said.

"This record eclipses the previous record of 368 mph set in 2003 on CMA-CGM Peninsular Bay by a 53 moves.

"This is a testimony that we are continuously committed be industry's leader in terms of productivity. This feat could not have been realised without meticulous planning, coordination and teamwork," he said.

Westports Executive Chairman Tan Sri G. Gnanalingam commended the seven quay crane operators responsible for the feat.

They included Azmi Ashaari, Md. Hanim Che Megat Dewa, Mohd Noor Salleh, Ramis Kirishnasamy, Ismail Abdul Rahman, Md Rumzi Hassan and Yogendran Yoganathan.

Sabah to get new container port
By JONISTON BANGKUAI
February 14 2006


SABAH Ports Sdn Bhd (SPSB), which took over the operations of seven ports in the state in 2004, is developing a new dedicated and modern container port at Sepanggar Bay, 25km from Kota Kinabalu.

"The new container port will be completed by the end of the year and scheduled for full operations by January 2007," SPSB managing director Datuk Abu Bakar Abas said.

He was speaking to reporters after a briefing by SPSB for visiting Penang Yang di-Pertua Negeri Tun Abdul Rahman Abbas yesterday.

Costing RM394 million, the new container port is poised to make Sabah a hub for goods and services in the East Asean Growth Area covering East Malaysia, Kalimantan, southern Philippines and Brunei.

The container port will, among others, have a 500-metre-long jetty, capable of handling two container vessels of up to 2,500 TEU (twenty-foot-equivalent unit) containers.

It will also have a 15ha container stacking area, four units of mobile harbour cranes complemented by shuttle carriers on jetty, tractor trailers and reach stackers for container handling in the yard.

"The container port will have an annual throughput capacity of 500,000 TEUS," Abu Bakar said.

SPSB is also developing port new facilities to cater for the tremendous growth of the palm oil industry in Sabah.

Abu Bakar said a two-berth oil jetty is currently under construction at the Sandakan port which is scheduled to begin operation by the end of the year.

With the development of palm oil industrial cluster in Lahad Datu amd Sandakan, SPSB will develop new jetty and other related facilities to meet the needs of the industry.

Malaysian ports vying for more direct trade with India
February 22 2006

MALAYSIAN ports are vying for more direct trade with India instead of receiving the cargo and goods via Singapore, a move which can achieve significant foreign exchange earnings for the country and provide a major boost to the port industry.

Westports Malaysia executive chairman Tan Sri G. Gnanalingam said about 1.5 million boxes come from India via Singapore before reaching Malaysian shores.

"There can be more direct trade between Malaysia and India and we can do more connections," he said after delivering a talk on Westports' operations to 70 delegates from the Indian Institute of Planning and Management in Port Klang yesterday.

He cited how Malaysia buys RM290 million worth of onions, "but the onions go to Singapore before it sees the daylight here".

"We are trying to increase the port trade between Malaysia and India all the time. But the progress is slow," he said.

However, he said that if Westports is invited to assist in transferring port technology and management to Indian ports, "we would be quite happy to do so".

"We have two offers actually and they are being finalised at the moment," he said, but declined to reveal the parties involved.

Gananalingam also expressed confidence that Westports would achieve its target of handling 3.5 million TEUs (twenty-foot equivalent units) this year compared with 2.91 million TEUs last year.

"It would be difficult, but we are trying to achieve it. It is not easy," he said.

On Hyundai Merchant Marine's signing up as the latest South Korean shipping line at the port, Gnanalingam said the deal would mean another 70,000 boxes.

"It is quite good, and there are a lot of local boxes, which makes it worthwhile. It is worth about 220 tonnes (extra) shipment of boxes," he added.

Hyundai Merchant is a member of the world's largest shipping alliance, The New World Alliance. - Bernama

Facelift for Muar waterfront
By CHUAH BEE KIM
February 23 2006


MUAR, one of Johor's oldest towns, will get a major facelift with the launch of a RM68 million development project in the centre of the town.

Called Maharani Ayu, the project is coming up on 12ha of waterfront land along the Muar River.


Developed by Pulai Springs Resort Bhd (PSRB), it is scheduled for completion by 2008.



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This is the company's first foray into Muar, after its successful Pulai Springs golf resort in Johor Baru.

Maharani Ayu, a mixed development project featuring residential and commercial units, will be the first major real estate development in Muar, which is often referred to as the "Pensioners' Town".

A stone's throw from the second Muar bridge and the newly-opened Muar outer ring road, the development is also the first to offer guarded and garden community living in the district.

PSRB general manager for property development Teo Thian Eng said the project would also include 1.7ha of landscaped gardens and a jetty.

He said the residential component of the project will comprise 152 cluster homes, 20 bungalows and 14 semi-detached houses. Also coming up are 37 shophouse units.

"Already, 40 units of houses and shophouses have been snapped up since the sales launch in September last year," he said.

The cluster homes are selling from RM220,000 onwards while the semi-detached units are pegged at RM330,000 and above.

Dredging work starts on Port Klang channel
April 17 2006


INTEGRATED Marine Works (IMW), a subsidiary of Inai Kiara Sdn Bhd, has started capital dredging work on the North Access channel at Port Klang that will provide easier access to bigger and deep-drafted ships.

The approach channel will be dredged up to 15m from the present 11.3m, according to InaiKiara.

The dredging work received the approval from the Government following Northport Malaysia's appeal to the Government to dredge the approach channel to cope with the increasing size of mega carriers with 8,500-TEU capacity that have started to call at the terminal.

IMW said the first parcel of dredging the Northport approach channel works has been progressing well and this will allow bigger ships easily to maneuvering to the nation's premier gateway port, Port Klang.

The company completed capital dredging work at Berth 14 at Northport in April 2005.

IMW is a reputable local dredging specialist providing services to both the public and private sector.

It has excellent rapport with all port authorities in Malaysia, a credential of their past satisfactory performance of completing dredging works on schedule.

The dredging company was also granted a 15-year contract by the Ministry of Finance to undertake all dredging work at seven major ports - Kuantan, Bintulu, Kemaman, Port of Tanjung Pelepas, Port Klang, Johor Port and Penang Port - in Malaysia.

The commissioning of Berth 14 with 15m depth puts Northport in a more competitive position to effectively respond to the increasing size and capacity of ships calling only at selected ports worldwide.

Several lines such as Orient Overseas Container Lines, Maersk-Sealand, Yang Ming Line, Malaysia International Shipping Corp, NYK Line and Hapag-Lloyd, to name a few, which have already started deploying the mega size carriers or are expected to deploy even more in 2006 and 2007. - Ports World

Sarawak identifies sites for new ports
April 17 2006


THE Sarawak state government plans to develop two more ports along its coastlines to meet growing demand for sea outlets, in tandem with the economic development of the state.

The two locations identified for the development of the ports are at Tanjung Po near Kuching and Pulau Sari Port near Lawas.

Disclosing this recently, the Sarawak State Minister for Infrastucture Development and Communications, Tan Sri Dr Alfred Jabu said the development of the proposed new deep water port, Tanjung Po Port would also overcome physical limitations faced by Kuching and Miri ports.


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Kuching is faced with a growing sand bar at its approach channel while Miri is hampered by very low draft.

"Overcoming these constraints would be of paramount importance to ensure long term viability of the state ports to cater to bigger vessels," said the minister.

The proposed Pulau Sari Port is expected to cater for the increasing oil palm cultivation.

The proposed bulking terminal at Bukit Sari, Lawas, is expected to generate traffic for the proposed Pulau Sari Port.

The proposed port is also expected to become the exporting point for the palm oil from neighbouring plantations, including those from Sabah.

The state government has identified 3.9 million hectares as suitable site for oil palm cultivation.

The state government had evaluated and identified oil palm corridors in their order of priority. These include the Miri-Bintulu corridors, the Tatau-Sibu corridors, the Sibu-Sri Aman corridors and areas south of Kuching division near the Indonesian border.

Besides the new port facilities, a crude oil palm bulk terminal will be built at Tanjung Manis to serve the planned oil palm plantations in that area.

In addition, Senari Independent Oil Terminal is being constructed near Senari Port in Kuching.

To further facilitate the movement of oil palm by road tankers the road access to Senari Terminal of Kuching Port is currently being upgraded into a dual carriageway.

Tanjung Manis Terminal, Rajang Port second sea outlet, which is located about 43km away from Sibu, at the moment has no road linkage at all.

However, once the proposed Sibu/Bawang Assan/Serdeng/Tanjong Manis road is completed, Tanjung Manis Port will be linked directly by road to Sibu, said Jabu.

A crude oil palm bulk terminal will be built at Tanjung Manis to serve the planned oil palm plantation in that area, besides the plan by Bintulu Port to expand its bulking and port facilities. - Ports World

Firm offers affordable way to own a yacht
April 17 2006
thestar
By Sharidan M. Ali


OWNING a luxury yacht has been brought within the reach of Malaysians – thanks to a partial ownership scheme introduced by Penang-based company Pen-Marine Sdn Bhd, a one-stop yachting centre.

The scheme is said to be the first of its kind in Malaysia.

Pen-Marine fleet manager Luke Lim said the scheme was not only aimed at making yacht owning more affordable but also to woo more Malaysians to get involved in leisure activities such as yachting and cruising.

“The time-sharing concept that the scheme is based on is practical in this country as we do not have long holidays like the Europeans.





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The Ferretti 731, a new power motor boat
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“With owners ranging from two to six people, depending on the boat size, owners could share the burden of maintaining the boat together.

“For example, four owners could interchangeably use the boat one week for each month and split the cleaning, spare parts replacements and maintenance fee among them.

“We are trying to keep the price below RM100,000 for each owner to contribute toward boat.

“Currently, we have received our first order in the boat sharing scheme, a Gulf Craft Walkaround 31 that will be delivered in three months,” he said.

Meanwhile at their shipyard in Batu Maung, Penang, the company is in the midst of completing two dining cruise boats for Tasik Putrajaya that will join the existing two vessels operating at the lake this year.

The third boat, measuring 85 metres long, will be delivered this month. The other is still taking shape in Batu Maung.





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Lim showing the boats available
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“We’ve been involved in boat construction for the past three years. Now we have also moved from building fibreglass-hulled boats aluminium-hulled vessels,” said Lim.

He expressed confidence in the future of the industry as the market response for locally-made yachts was positive and the industry was growing due to the steady economic condition.

“Many marinas have been built along our coastline and we foresee a flourishing future of the boating fraternity in the next decade,” he said.

Pen-Marine offers various services from boat construction, ship manning, leisure boat chandlery, brokerage, boat sales, repairs and fitting to marina facilities,

“We are also the sales agent for some of the prestigious brand names in the yachting industry namely Ferretti, Pershing, Bertram, Apreamare, Hershine, Riviera, Custom Line CRN, Hunter, and Gulf Craft,” he said.

To date, he said, Pen-Marine had expanded its services to Port Dickson, Kuala Lumpur and Jakarta.

“Last year, the company managed to sell four luxury yachts including Ferratti 731, which was on display at the Boat Asia 2006 in Singapore last two weeks.

“The other three are sold under boat brokerage of second-hand boats and we are expecting to sell at least another four to five luxury boats by the end of this year,” he said.

BizFocus:
A 'beautiful monster' made in Malaysia
May 16 2006
BusinessTimes (http://www.btimes.com.my/Current_News/BT/Monday/Column/BT565030.txt/Article/)

It is no coincidence that IMPSA (M) Sdn Bhd built the largest crane of its
type in the world, as the firm was building it for the future,
writes PRESENNA NAMBIAR

THE mammoth crane, the world's largest and made in Malaysia, is 26 storeys tall!

Once it swings into operation at the southern Port of Tanjung Pelepas (PTP (http://www.skyscrapercity.com/showthread.php?t=140812&page=1)) in Johor to where it has been shipped, it will able to pick up and move four 20-foot containers simultaneously.

In comparison, an ordinary quayside crane will only be able to do a single box at any one time.

"It's a beautiful monster," says Peter Hessey, managing director of the company that built the crane.

Impsa (Malaysia) Sdn Bhd, a unit of a port crane specialist in Argentina, built the 1,700-tonne crane. It took 13 months and about RM25 million to build it at the Lumut Maritime Terminal in Perak.

The crane is categorised as a Super Post-Panamax, a port category, which means it can serve ships classified as being too large to pass through the Panama Canal.

Recently, Impsa Malaysia bade farewell to the crane's upper structure as it was tugged off to be attached to its giant legs at the PTP. The legs were shipped there much earlier.

Once the barge anchored in PTP, the upper structure of the crane was successfully lifted from the barge and mounted onto its waiting "legs" by a floating crane, specially brought in from Singapore.

Already in possession of three Impsa-made quayside cranes, PTP is expecting another five to be delivered to it by February next year.

Hessey said there are other cranes now being built which will be larger than the ones at the PTP, adding that such huge and complex pieces of machinery are needed for their efficiency.

The need for such gargantuan machines at ports also has a lot to do with the expansion of international maritime containerised trade and also that of shipping fleets and capacity.

As more larger container ships are being built, the need for faster loading and unloading is also increasing. Only cranes such as the one recently shipped by Impsa Malaysia to the PTP serve such purposes.

The Super Post-Panamax quayside crane built by Impsa Malaysia sourced most of its steel locally, with only 9 per cent imported.

"Due to its size and thickness, there are limitations in the market in terms of sourcing of material," Impsa operations director Sergio Evan Ciner said.

But the crane's creator, Impsa Malaysia, is not resting on its laurels. The company is planning to expand into building more ship-to-shore (STS) and rubber-tyred gantry (RTG) cranes and possibly bigger ones than the latest one.

The company is spending some RM120 million to expand its facilities in Lumut (http://www.skyscrapercity.com/showthread.php?t=322846&page=1).

Phase One of expansion in Lumut Port will cost RM70 million, while Phase Two will cost around RM50 million.

Phase One, scheduled to be ready by mid-2007, will see production capacity go up to 18 STS and 36 RTG cranes per year. Phase Two will then double this number to 36 STS and 72 RTG cranes.

"RTGs are specialised cranes which are popular in both Asia and the US. In Europe, they have straddle carriers more often that not," Hessey said.

The company is expanding for the future, when bigger and better cranes will be the flavour of the day for competitive ports. "Around the world they have started to purchase cranes of this size," Ciner said.

Part of its expansion plans is to prepare itself for much bigger equipment. "We are going to rebuild the jetty with deeper piles and dredge longer so our yard will be prepared to receive not only barges but also big vessels," Ciner said.

The longest trips Impsa's cranes have made from its jetty are to Indonesia and Bintulu in Sarawak.

Impsa Malaysia also plans to set up a total design and development team for RTGs in Kuala Lumpur this year.

"That would initially mean bringing one or two engineers from our parent company, but more importantly recruiting local engineers - structured engineers, mechanical engineers and electrical engineers - to build up their expertise in this field over the next two or three years," Hessey said.

Impsa Malaysia is an associate company of Impsa Argentina and partly owned by Bidang Mulia Sdn Bhd and Emir Equity.


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Westports: Smooth, paperless communication via e-Loading
May 16 2006
BusinessTimes (http://www.btimes.com.my/Current_News/BT/Tuesday/Nation/BT556627.txt/Article/)

The main goal of e-Loading is to provide a platform for
the port's customers to eliminate the tedious preparation of load lists

WESTPORTS (www.westport.com.my/) Malaysia's electronic loading (e-Loading) was introduced with the view of eliminating load list correspondence between shipping lines and the port in order to achieve smooth and paperless communication, benefiting both parties in terms of preparation, submission and productivity.

The main objective of e-Loading is to provide a platform for the port's customers, such as shipping lines, to eliminate the tedious preparation of load lists, which saves time and resources, and provides data accuracy assurance.

E-Loading shortens the process as liners do not have to submit load lists. This is because, information on containers to be loaded can be downloaded directly from the port's yard inventory system.

As e-Loading facilitates data accuracy, better planning can be executed by both the vessel and planning departments to ensure smooth flow of cargo movement, leading to improved productivity and operation efficiency.

Since the use of e-Loading causes a significant reduction in errors, all the data received by the shipping lines are deemed correct unless advised otherwise by the shipping lines.

Accuracy is indeed vital. As the boxes move from one port to another, from one country to another, keeping track of data is imperative for smooth operations.

Ultimately, a win-win situation for both the port and the shipping lines is created when the port is able to ensure higher productivity.

Since its first year in operations, the number of containers at Westports has taken a quantum leap, leading to the port's latest annual throughput of 2.9 million TEUs (20-foot equivalent units).

In view of the escalating volume, e-Loading helps save a lot of time.

According to port officials, now it only takes minutes to download the data on the number of containers that are stored at the yard. This is important to the customers and Westports - which had recently expanded its terminal capacity to six million TEUs per year.

In addition, both Westports' vessel operation and planning departments will have more time at hand to make proper planning, as it is essential to cater to a seamless cargo movement at the port.

Besides this, e-Loading assures customers that once a particular box has been gated in, it will definitely be loaded on to the expected vessel. This alleviates the customers' worries about the boxes being missed during loading or shut out.

E-Loading is part of Westports' efforts to enhance the use of information technology in all facets of its operation.

Traditional ways of doing business such as through electronic mails and faxes cause numerous delays and require data to be re-entered into multiple systems and multiple times.

A B-2-B integration such as e-Loading is the best way to increase process efficiencies in ports that have progressed so rapidly over the years.

Bunga Seroja Satu's Maiden Voyage Marks A Milestone


PORT KLANG, May 17 (Bernama) -- Malaysia's largest container vessel, Bunga Seroja Satu, will mark a significant milestone in the country's journey to be a leading maritime nation with its maiden voyage around the world.

The 317.8m vessel, owned by MISC Bhd, is heading for at least 15 destinations, among them, Jeddah, Rotterdam, Hamburg, Taiwan, Pusan, China, Singapore and back to Malaysia in 63 days.

The vessel will depart from Northport at midnight.

Bunga Seroja Satu, ordered from Daewoo Shipbuilding & Marine Engeneering Co Ltd in 2004, is the first of a series of two container vessels ordered by MISC.

The other is Bunga Seroja Dua, which is due for delivery in February 2007.

MISC vice president (liner business), Niels Kim Balling, said the addition of these vessels was part of MISC's restructuring programme of the liner business.

"These vessels will put MISC on a firmer footing within the Grand Alliance and in the integrated liner logistics industry," he said at the ceremony to celebrate the maiden voyage on board Bunga Seroja Satu here today.

-- BERNAMA

Westports on mission to attract UAE investors
May 23 2006
BusinessTimes


The aim is to attract investors, manufacturers and shipping liners to be a
part of the Port Klang Free Zone as well as participate in Malaysia's halal
initiatives


WESTPORTS Malaysia, with the cooperation and support of the Transport Ministry, is organising a Trade and Logistics Opportunities Mission to Dubai on June 12.

The aim of this mission is to attract investors, manufacturers and shipping liners to come to Port Klang and be a part of the Port Klang Free Zone (PKFZ) as well as participate in Malaysia's halal initiatives in Port Klang and other parts of the country.

Transport Minister Datuk Seri Chan Kong Choy will lead this mission.

Other members of the mission include Westports executive chairman Tan Sri G. Gnanalingam, Port Klang Authority (PKA) chairman Datuk Yap Pian Hon, PKA general manager Datin Paduka O. C. Phang and PKFZ managing director Noel Gulliver William.

"The objective of the mission is to attract investors from the United Arab Emirates (the UAE) to invest and do business in Malaysia, particularly in the logistics and halal trade and to enhance bilateral trade between Malaysia and the UAE. Other benefits include raising the profile of the Malaysian participants to foreign investors through business matching programmes.

"We intend to bring about 100 local businessmen to further enhance business collaboration between the private sectors of Malaysia and the UAE," Chan said in a statement yesterday.

Among the possible halal industries that the delegation will explore are food products such as dairy, food and beverages, confectionary and culinary as well as non-food products such as pharmaceuticals, herbal supplements, leather goods, cosmetics and toiletries.

The recently-held World Halal Forum in Kuala Lumpur paves the way for Malaysia in becoming a "Centre Of Halal Excellence".

"We want to help Malaysian businessmen especially Bumiputera SMEs realise the full extent of the market potential for halal manufacturers, both food and non-food.

"This Dubai mission is also geared towards growing the numbers and range of halal-certified products on offer in the global market, coming off Malaysian Centres of Halal Excellence," he said.

"The halal industry is important and it has been identified as the next wave of development for Malaysia's economy. With our already good infrastructure in place including highways, world-class airport and port, the multimedia corridor, broadband as well as 3G telecommunications facilities, the halal sector gives us a fantastic opportunity to be the capital of halal food trade," he added.

The upcoming visit to the UAE is also one of the initiatives taken by Malaysia to strengthen economic ties with member countries of the Organisation of Islamic Conference (OIC).

The International Trade and Industry Ministry (Miti) had said Malaysia's trade with OIC countries has expanded significantly over the last decade.

Malaysia's total trade with OIC member states increased more than four fold from US$4.1 billion (RM14.88 billion) in 1995 to US$18.4 billion (RM66.79 billion) in 2005.

All the markets in this region recorded increases in exports, with the UAE, Saudi Arabia, Turkey, Yemen and Iran registering the most significant growth.

Westports also said it is excited about the prospect of engaging more Middle East main line operators to call at its port.

Currently, Westports' capacity is 6 million TEUs (20-ft equivalent units) and has the capacity to handle up to 10 million TEUs within the next five years.

The recent surge in trade between Malaysia and Middle East is also exemplified by the strong growth of containers from West Asian Shipping Lines such as UASC, IRISL and Simatech, who are all major customers of Westports.

They view Westports as their favourite port due to the efficiency and productivity that the port provides.

Penang Port unveils RM1b upgrade
By Marina Emmanuel
August 29 2006
BusinessTimes



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PENANG Port Sdn Bhd (PPSB) plans to spend close to RM1 billion over five years to expand the port and buy new equipment and machines.

PPSB managing director and chief executive officer Datuk Ahmad Ibni Hajar who yesterday unveiled the blueprint, said RM380.7 million would be used to upgrade and expand the port, while the remaining RM600 million would be spent for state-of-the-art equipment.

“We want to be ranked among the top 50 ports of the world and plan to commence construction next year for the project which will take 30 months to complete.

“With this new phase of development Penang Port will enter into a new era to serve not only feeder vessels but will also enhance our readiness to serve main line operators and mother vessels for direct services,” he told reporters at the Penang Golf Resort at Bertam in Kepala Batas.

Present was Penang Port Commission general manager Datuk Captain Abdul Rahim Abdul Aziz.

PPSB will finance this with internal funds and borrowings. Under the plan, it will also focus more on Asia, notably the Far East/China and the Indian sub-continent markets.

The plan will include: q The expansion of the North Butterworth Container Terminal (NBCT) by 600 metres to accommodate 7 vessels at any one time, q Dredging will be carried out to 13.5 metres from the current depth of 11.5 metres, q A 1,500 metre storage deck attached to the back of the present berth to improve port productivity up to 30 per cent, q Six new gantry cranes, and q A barging centre to handle barges from the hinterland.

“The synergy of the new terminal,” Ahmad said, “will be complemented by a deeper north channel entrance of 13.5 metres for which PPSB has submitted a request for Government funding amounting up to RM120 million.” The total berth capacity of the NBCT upon completion will be 1,500 metres and it would be able to handle 1.84 million twenty-foot equivalent units (TEUs). This compares with the current berth capacity of 600 metres and capacity of 961,300 TEUs.

Meanwhile, the port’s on-going efforts in going paperless yesterday saw Ahmad launch its newest container terminal management system (Pelkon 3) which will come live on September 1.

Pelkon 3, which is estimated to cost RM20 million, will enable port users to access the system via Internet to conduct daily business from anywhere and at any time, minus the hassles and problems that they face now.

Plans to be a marine hub
Monday September 25, 2006
By NG SI HOOI
TheStar


http://www.thestar.com.my/archives/2006/9/25/nation/06chan.jpg

MONACO MANOEUVRES: Chan (fifth from left) posing with yacht operators at
the Monaco Yacht Show. Looking on are Marine Department deputy director-
general Baharin Abdul Hamid (right) and Transport Ministry deputy secretary-
general Datuk Zakaria Bahari (third from left).


STOCKHOLM (Sweden): Malaysia plans to be a destination for yachting and activities related to marine leisure, said Transport Minister Datuk Seri Chan Kong Choy.

Chan attended the Monaco Yacht Show over the weekend to promote the Langkawi International Yacht Registry, which provided incentives and tax exemption to yacht owners and companies that had registered their yachts in the island.

The three-day show is the only international yacht event devoted exclusively to luxury yachting and the biggest in-water display in Europe of super and mega yachts.

By having the yacht owners and companies register in Malaysia, Chan said it would attract other related activities that would have a direct impact of the economy.

“It will also bring investment opportunities.

“This is a new area that will have a positive impact on the country,” he said adding that the response from the Monaco show was positive and encouraging.

Chan was speaking to reporters here after attending a dinner hosted by Malaysian Ambassador to Sweden Jasmi Md. Yusoff on Saturday.

He said Malaysia had a good chance of attracting yacht owners due to its attractive places such as Langkawi, Penang, Pulau Pangkor, Pulau Tioman and Pulau Redang.

“Unlike the Caribbean and Mediterranean where yachting has been long established, the yacht owners can only cruise six months due to the weather,” he said.

“The owners have looked at other destinations especially in Asia for a change. So we want to grab this opportunity to attract them to come to our country.”

Chan said Malaysia's political stability, multi-cultural aspects and food variety would attract the owners.

“Our country can also offer cheaper fuel and parking bays compared to the other countries,” he said adding that the Government had invested a lot in the industry such as constructing new marinas.

Chan said a workshop would be held for yacht clubs and marina operators, yacht builders, brokers and charters to promote Malaysia as a destination.

“We like to invite successful marinas and yacht operators from the Caribbean and Mediterranean to talk about their experiences,” he said.

Malaysia needs roadmap to boost shipbuilding sector: Institute
By Presenna Nambiar
November 17 2006


The shipbuilding and ship repairing industry needs to be designated as a strategic industry and be promoted as such in line with Malaysia's growing trade, says the Maritime Institute of Malaysia

MALAYSIA needs to establish a roadmap, much like what has been done for the automobile industry, to grow the shipbuilding and ship repairing industry here, say a research fellow from the Maritime Institute of Malaysia (Mima).

"The success achieved by countries, such as Japan and China, in this industry is not something accidental or reactionary but the culmination of a plan that was put down on paper, a plan which was also able to adapt to changes in the industry," Mima research fellow Nazery Khalid said in his speech when addressing some 25 participants at a seminar held in Kuala Lumpur yesterday.

The seminar was entitled "The State and Future of Malaysian Shipyards: Towards Improved Capability and Capacity".

Nazery said the shipbuilding and ship repairing industry needs to be designated as a strategic industry and be promoted as such in line with the nation's growing trade.

There is a need for the Government to provide subsidies at the infant stage to help players absorb the high-capital expenditure associated with the industry.

"No country in the world, which has been successful in this industry, was able to do it without government intervention in the form of funding," Nazery said.

Meanwhile during his opening speech, Mima director-general Datuk Cheah Kong Wai said Malaysian shipyards are still unable to cash in on the bullish outlook of the regional and global shipping sector.

This is due to issues like technological skills and manpower, rising operational costs and excess capacity, with most of shipyards in Malaysia utilising only 50 per cent of their capacity.

Local yards also lose business to foreign yards due to their inability to service certain type of ships. They have also been said to take too long to repair certain types of ships.

Many shipyards in Malaysia still specialise in low-value and small vessels.

As of last year, there are six big yards, 56 yards with a manufacturing licence and more than 30 small yards.

Shipbuilding and ship repairing activities are now grouped under as manufacturing activities.

Submarines ready by 2009
Sunday June 12, 2005
BY CHOI TUCK WO



http://thestar.com.my/archives/2005/6/12/nation/p5najib.jpg

Najib getting a first-hand view of the pressure
hull of the Scorpene submarine at the assembly facility
in Cherbourg, France, on Friday.


CHERBOURG (France): The pride of the nation – Malaysia's first submarine is expected to cruise home, manned by the country's first ever submarine crew by the middle of 2009.

Work on the Scorpene submarine project, involving two state-of-the-art underwater vessels, is about 35% complete with the first scheduled for completion by early 2009 and the second, about six months later.

Deputy Prime Minister Datuk Seri Najib Tun Razak said he was satisfied with the progress of the Royal Malaysian Navy’s submarine programme.

Armaris, a joint venture of French shipbuilder DCN and Thales, is the prime contractor for the Malaysian submarine programme.

Najib, who spoke to Malaysian journalists after visiting DCN’s submarine assembly facility here, about 400km west of Paris, on Friday, was briefed by DCN’s director of warships and systems Pierre Quinchon and submarine project director Eric Pavolee.

He later visited the Chilean Scorpene submarine, O’Higgins.

Najib, who is also Defence Minister, accompanied by navy chief Admiral Datuk Ilyas Din, had flown in from Brest where he held a dialogue session with about 70 Malaysian trainees at DCN’s submarine training school.

Apart from classroom and simulator lessons, the Malaysians were also given hands-on training on board the French navy’s former submarine, Quessant SSK.

Najib said the construction of the submarines was proceeding according to schedule although there had been a slight delay in the training.

However, Najib said the trainees will not cut short their training, despite the delay.

“We will not compromise on the quality of our trainees by cutting short the four-year training programme just to speed it up, as this is a very important and sensitive project for Malaysia.”

In this respect, the transfer of technology involving underwater training and its related aspects would be given priority, he added.

Najib said that about 150 Malaysian navy personnel would eventually be trained to handle the submarines, which would be based in Sepanggar Bay in Sabah.

He said a submarine base was under construction in the area, which was best suited for such vessels’ due to its deepwater harbour facilities.

The Deputy Prime Minister added that the French trainers had expressed satisfaction with the trainees’ capabilities in operating the submarines.

In appreciation of their diligence and commitment to the programme, Najib said he had given approval for them to return to Malaysia on three weeks’ leave after completing four months of training although the contract stipulated that they would only get home leave after eight months of training.

Najib said the move was also made on humanitarian grounds to enable the trainees to be with their families.

To another question, he said only about 30 crew members were required to operate each submarine.

He added that several aspects of the submarine programme have to be reviewed, including the special allowances for the submariners. He said the Government would hold discussions with the relevant agencies to decide on a fixed allowance for them.

Later, Najib attended a reception with the Malaysian community here, which comprised mostly family members of the trainee submariners.


First Malaysian sub launched
Wednesday October 24, 2007
By CHOI TUCK WO
TheStar


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CHERBOURG (France): Malaysia’s first Scorpene submarine was launched Tuesday signifying yet another leap in the nation’s pursuit of new technology.

KD Tunku Abdul Rahman, named after the country’s first Prime Minister, was unveiled in a historic ceremony at the DCNS dockyard here, about 400km from Paris.

In keeping with maritime tradition, Datin Seri Rosmah Mansor broke a bottle of water against the submarine’s sail to signify the official launching and naming of the vessel.

The Deputy Prime Minister’s wife then unveiled a plaque with the submarine’s name and called upon “Allah to bless her and all who serve and sail with her”.

Accompanying her were Royal Malaysian Navy chief Admiral Tan Sri Ramlan Mohamed Ali, DCNS chairman Jean-Marie Poimbeouf and Submarine Force Project Team head Laksamana Pertama Rosland Omar.

Datuk Seri Najib Tun Razak, French Defence Minister Herve Morin, Defence Forces chief Jen Tan Sri Abdul Aziz Zainal and senior officials from both countries witnessed the ceremony.

Later, the VIPs toured the submarine which is equipped with torpedoes, sub-surface to surface missiles and sea mines.

The vessel was one of two bought by Malaysia in 2002, with both being jointly constructed by DCNS of France and Navantia of Spain.

In his speech, Najib said the submarine was named after the Tunku in recognition of his contribution in leading the country to independence.

“His courage, wisdom and foresight had steered our nation to what it is today,” he added.

He said the submarine acquisition was part of the Malaysian Armed Forces’ modernisation programme which could contribute significantly towards creating a more balanced capability.

As a maritime nation and given its geographical setting, it is inevitable that Malaysia’s national interests and security concerns are closely related and associated with the seas, he said.

He said commercially, more than 90% of the country’s domestic and international trades were dependent on sea transportation.

On the seabed lies underwater pipelines that transport Malaysia’s oil and gas ashore as well as cables that link major international communication networks.

“It is thus crucial for Malaysia to have a small but credible and effective naval force to not only safeguard its sovereignty and maritime interests but also contribute to the region’s maritime security and safety,” he added.

Najib said the project signified a major leap into high technology defence acquisition, providing the impetus for the local industry to acquire cutting-edge technological knowledge and expertise.

KD Tunku Abdul Rahman is set to sail home, manned by the country’s first submarine crew in January 2009 while the second vessel, to be named KD Tun Razak, is expected to be delivered by October 2009.

Port Klang-Rotterdam halal supply chain to be ready in 6 months
By Hamisah Hamid
October 29 2007
BusinessTimes



THE halal supply chain in the Netherlands for products from Malaysia - a collaboration between Port Klang and the Port of Rotterdam - is expected to be established in six months.

Netherlands Foreign Investment Agency (NFIA) director Bas Pulles said the halal supply chain at the Port of Rotterdam is needed to tap the growing halal food market in Europe as well as the world.

"We already have logistics service providers with halal certification but the halal supply chain has not been in place yet.

"In about six months, we hope to establish the halal supply chain from Rotterdam to north-west Europe... connecting manufacturers in Malaysia and shops in north-west Europe," he told Business Times on the sidelines of a seminar on "The Netherlands, Your European Partner in Your International Business" in Kuala Lumpur on October 23.

In November last year, a delegation from Port of Rotterdam visited Port Klang to discuss the possibility of working together to extend their outreach to European Muslim markets.

It has been estimated that 30 million Muslims are living in Europe.

Pulles said more than one million out of 16 million Dutch population are Muslims.

He said a conference on halal supply chain will be held in the Netherlands either in January or February next year where representatives from Port Klang will also participate.

"We hope the conference could speed up the setting up of halal supply chain in Port of Rotterdam," he said.

Pulles said so far, the number of Malaysian companies having operations or investing in the Netherlands is very small.

He said NFIA has opened an office in Kuala Lumpur a few months earlier to facilitate trade and investment from Malaysia into the Netherlands.

"We have helped seven companies to establish operations in the Netherlands, and we are now negotiating with 20 more companies," he said.

NFIA, a division of Dutch Ministry of Economic Affairs, is targeting to attract seven to eight Malaysian companies per year to invest in the Netherlands.

Besides bio-diesel and commodity sector, Malaysian companies in the Netherlands are also active in food-related sector and automotive components.

Pulles expects information communication technology and service-based sectors to be areas which Malaysian companies will be active in.

Millions more pouring into Port Klang Free Zone
Friday November 30, 2007
TheStar

http://www.thestar.com.my/archives/2007/11/30/nation/04chan.jpg

New chapter: Chan (right) at the launch of the
new PKFZ logo in Port Klang yesterday.

PETALING JAYA: The worst is over for the Port Klang Free Zone (PKFZ).

Investors, including big multinational names, are bringing in millions of ringgit and job opportunities are expected to increase by a hefty 2,252% by the end of next year.

Although the Government is expected to provide Port Klang Authority with a soft loan amounting to RM4.6bil to develop the PKFZ, Transport Minister Datuk Seri Chan Kong Choy said every sen of the loan would be repaid.

“The life span of PKFZ is more than 50 years. It is long enough for repayment. Once the loan is settled, PKFZ will be a good income generator. All the issues have been resolved. As far as we are concerned, the worst is over,” said Chan when reporters asked about the project’s problematic start.

“Since its opening in November last year, 39 companies involved in manufacturing, distribution, trading and logistics have invested RM729mil here, generating 888 jobs.

“PKFZ is in negotiation with 55 other companies with potential investment value of RM610mil. This is targeted to be achieved by the end of 2008 with about 20,000 job openings to be created,” he added after launching the new PKFZ logo at the Sheraton Subang here.

Chan assured investors that PKFZ was a safe zone. He had been informed that the PKFZ management had taken steps to ensure se-curity was enhanced and that an agreement was being executed with experienced auxiliary police to secure the area.

On the the PKFZ logo change, he said some might view it as insignificant, but a logo was a powerful symbol in the branding of an organisation.

“Therefore, the new logo is really about the opening of a new chapter for PKFZ. It is about change, about adapting to things new,” said Chan.

Boustead Naval Shipyard Gets RM250 Mln To Build A Floating Hotel

LANGKAWI, Dec 4 (Bernama) -- Boustead Naval Shipyard Sdn Bhd, a unit of Boustead Holdings Bhd, has won a RM250 million contract to build a floating hotel in the design of a ship, called a yacht hotel, from Finland's Sunborn Marine.

Assistant general manager Mohamed Ithnin, who also heads the Ship Construction and Engineering Division, said today the contract was signed last April and work has begun at its shipyard in Lumut completion date set for December 2008.

"It is a 1+1 contract, which means there is an option for another similar order," he told reporters at the maritime component of the Langkawi International Maritime & Aerospace (LIMA) exhibition 2007 here.

Mohamed said Boustead Naval Shipyard beat bids from Vietnam, South Korea and Poland to win the contract.

This is the first time the company is building a yacht hotel and he said all the expertise comes from Malaysians.

The hotel, which will have 186 rooms including 22 suites, will be anchored off Barcelona in Spain, he added.

Mohamed said if all goes well, the second yacht hotel will be built in time for use at the 2012 Olympics in London.

Meanwhile, a Boustead Yacht Sdn Bhd spokesman said it is set to sign a letter of intent on Thursday to build a luxury yacht but its value has not bee finalised yet.

Its specifications include a speed of 16 knots and 12 cabins.

NGV Tech expects to clinch US$400m contract
By Presenna Nambiar Published: 2007/12/18
BusinessTimes

The shipbuilder is set to sign an agreement to deliver 22 high-speed bullet-proof vessels in February next year

SHIPBUILDER NGV Tech Sdn Bhd expects to bag a US$400 million (about RM1.3 billion) contract to build around 200 high-speed bullet-proof vessels for a buyer in Egypt.

The company expects to sign an agreement for the first 22 vessels in February next year, executive chairman Zulkifli Shariff told reporters after the official launch of its 10ha shipyard in Selangor yesterday.

The event was graced by Prime Minister Datuk Seri Abdullah Ahmad Badawi, as part of his working trip to Selangor.

"We have asked for another 12ha from the Selangor state government to expand our shipyard and we hope to get it approved soon," Zulkifli said.

He said the expansion will need an estimated RM100 million, which will mostly be financed by internal funds.

NGV Tech's current yard capacity allows it to build at least 25 vessels of 80 to 100 metres long at any one time.

The shipbuilder has about RM900 million worth of contracts under its belt, which will keep it busy until 2010.

To date, it has spent some RM70 million on the shipyard.

"By early next year, we will also be finalising shipbuilding contracts with clients from Iran, France, Norway, the Netherlands and Mexico," Zulkifli said.

He is also asking the local government to dredge Sungai Langat to enable the company to build bigger ships.

It is requesting that the river be dredged to a depth of six metres. Currently, the river is only two metres deep.

NGV Tech has built 175 vessels since 1999, more than 70 per cent of which were for clients overseas.

NGV Tech Set To Get US$400 Million Worth Of Ship-building Deal
December 18, 2007 18:36 PM

BANTING, Dec 18 (Bernama) -- Ship builder, NGV Tech Sdn Bhd, is expected to secure a US$400 million (US$1=RM3.35) contract to build 200 ships for the Egyptian government.

Its executive chairman, Zulkifli Shariff, said the company, which has the expertise to build bullet-proof ships, was currently in the midst of completing the negotiations on the terms of the contract.

"We have almost finalised everything and have agreed in principle and we should get the letter of intent by end of this year," he said.

"For a start, we will sign an agreement with the government of Egypt to deliver 22 ships and this will take place in February next year," he told reporters at the launch of the company's shipyard at Sijangkang here by Prime Minister Datuk Seri Abdullah Ahmad Badawi today.

The remaining ships are expected to be delivered within five years.

At the Sijangkang facility, NGV Tech undertakes designing, construction and production of aluminium, steel and composite material tailored to clients' specifications.

Zulkifli said the company's order book was full until 2011.

"The value of contracts undertaken by NGV Tech at the Sijangkang shipyard is RM1.2 billion with RM200 million worth of work implemented and the remaining RM900 million worth of works to be carried out until 2011.

He, however added that the company will still be able to meet orders once the facility is extended to 12 hectares from the current 10 ha.

"We have requested for the expansion plan to the state government, and by May next year, hopefully we can take new orders," he added.

The company plans to fund the project, which could cost the company about RM80 million via internally generated funds.

For the financial year ended July 29, 2007, NGV Tech recorded a revenue of RM420 million. It hopes to reap RM600 million for the financial year ending July 29, 2008 after expanding its production line.

NGV Tech began operations in 1999 as a sub-contractor and has built more than 175 vessels of various sizes with 70 percent of them for overseas market.

Its clients include the Malaysian police force, Marine Department, offshore crew boat operators and Yemen's coast guard authority.

"Currently, we are also in the midst of negotiations with several parties and early next year, we will be finalising shipbuilding contracts with clients from Iran, France, Norway, the Netherlands and Mexico," he said.

He said most of the vessels under negotiations are vessels to be deployed in the oil and gas industry.

At the event today, the prime minister also witnessed the exchanging of Memorandum of Understanding (MoU) documents between NGV Tech and University of Kuala Lumpur (UniKL), and a tri-partite MoU between NGV Tech, the Ministry of Entrepreneur and Cooperative Development and the SME Bank.

The first MoU with UniKL will see the university via its Malaysian Institute of Marine Engineering working closely with NGV Tech to create graduates and technicians relevant to the current shipbuilding industry.

In the second deal, NGV Tech was appointed by the Ministry of Entrepreneur and Cooperative Development to create Bumiputra contractors and vendors who could become self sufficient and capable of venturing into bigger projects abroad with the assistance of SME Bank.

-- BERNAMA

NGV clinches RM1.34b Egyptian orders
by Sharon Tan, 19 Dec 2007 2:35 PM
THEEDGEDAILY

http://www.theedgedaily.com/cms/storage/images/com.tms.cms.image.Image_f11c5cbd-cb73c03a-7a922400-79792d12/1/NGV_inside.jpg

BANTING: NGV Tech Sdn Bhd has clinched a RM1.34 billion (US$400 million) deal to supply the Egyptian government with 200 high-speed, bullet-proof boats over the next five years.

Its executive chairman Zulkifli Shariff said the agreement would be signed in February 2008, and the first batch comprising 22 boats would be built in Banting and in its year-old shipyard in Egypt.

NGV had also secured other contracts worth RM1.2 billion this year, and recently confirmed RM900 million in additional orders for 11 ships from Borcos Shipping Sdn Bhd, Gagasan Shipping Sdn Bhd and Bukhrie Group of Saudi Arabia.

“Borcos is also putting in another order of RM220 million for three 75m anchor handling ships. We are finalising the terms of payment,” said Zulkifli after the launch of the shipyard by Prime Minister Datuk Seri Abdullah Ahmad Badawi yesterday.

He said its order book would keep NGV busy until 2011, and the company planned to expand its 10ha shipyard by an additional 22ha.

“We can start taking new orders in May 2008. We are going to extend the areas first before we commit to more orders,” he said, adding the current yard could build about 40 units of 34m vessels at any one time but can only accommodate 25 bigger vessels.

He said an extended area would be used for building bigger vessels. NGV is expected to spend RM100 million of mostly internal funds for the shipyard expansion.

NGV is targeting a revenue of RM600 million for its current year, up from RM420 million for the year ended July 2007.

Malaysia may consider Sabah-peninsula ferry service proposals
Published: 2007/12/30

THE private sector is welcome to submit proposals on the establishment of a ferry service between Sabah and Peninsular Malaysia, said Minister in the Prime Minister’s Department Datuk Dr Maximus Ongkili.

He said that such a service could increase people’s mobility as they were still highly dependent on air transport.

Efforts by the government to bring the people of Sabah, Sarawak and the peninsula closer together were somewhat impeded by high air transport costs, he said at a function organised by the National Unity and Integration Department in Kota Kinabalu.

Dr Maximus also said he would discuss with Malaysia Airlines and AirAsia the possibility of both airlines offering attractive fares during the school holidays with a view to enhancing national unity. - Bernama

Millions more pouring into Port Klang Free Zone
Friday November 30, 2007
TheStar

http://www.thestar.com.my/archives/2007/11/30/nation/04chan.jpg

New chapter: Chan (right) at the launch of the
new PKFZ logo in Port Klang yesterday.

PETALING JAYA: The worst is over for the Port Klang Free Zone (PKFZ).

Investors, including big multinational names, are bringing in millions of ringgit and job opportunities are expected to increase by a hefty 2,252% by the end of next year.

Although the Government is expected to provide Port Klang Authority with a soft loan amounting to RM4.6bil to develop the PKFZ, Transport Minister Datuk Seri Chan Kong Choy said every sen of the loan would be repaid.

“The life span of PKFZ is more than 50 years. It is long enough for repayment. Once the loan is settled, PKFZ will be a good income generator. All the issues have been resolved. As far as we are concerned, the worst is over,” said Chan when reporters asked about the project’s problematic start.

“Since its opening in November last year, 39 companies involved in manufacturing, distribution, trading and logistics have invested RM729mil here, generating 888 jobs.

“PKFZ is in negotiation with 55 other companies with potential investment value of RM610mil. This is targeted to be achieved by the end of 2008 with about 20,000 job openings to be created,” he added after launching the new PKFZ logo at the Sheraton Subang here.

Chan assured investors that PKFZ was a safe zone. He had been informed that the PKFZ management had taken steps to ensure se-curity was enhanced and that an agreement was being executed with experienced auxiliary police to secure the area.

On the the PKFZ logo change, he said some might view it as insignificant, but a logo was a powerful symbol in the branding of an organisation.

“Therefore, the new logo is really about the opening of a new chapter for PKFZ. It is about change, about adapting to things new,” said Chan.

PKFZ - Bail Out! Bail Out!
2007 (http://cyusof.blogspot.com/2007/08/pkfz-bail-out-bail-out.html)

After keeping mum all this while, NST, the Star and other mainstream press today finally gleefully headlined a 5 page statement handed out by the Ministry of Transport in Pulau Indah which glossed over the entire sickening RM4.6 billion affair. Port Klang Free Zone (PKFZ) new general manager for business development K.L. Chia, who happens to be an old friend of mine and barely a couple of months in his hot seat, had to do the honours while the minister and other Lembaga Pelabuhan Klang (LPK) officials were conspicuously absent.

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PKFZ Convention Centre

It boggles the mind that the Ministry of Transport has deftly side stepped the issues of accountability and good governance but instead hinted darkly that the Jebel Ali Free Zone Authority (JAFZA) which had cut short its 15 year management contract, was mainly responsible for the huge cost overruns. It would be interesting to hear what JAFZA will have to say about this. From what I hear their parting of ways was far from amicable and that the 'strategic' reasons JAFZA purportedly gave is a lot of bull crap.

TheSun newspaper today also questioned why didnt Kuala Dimensi Sdn.Bhd. develop PKFZ itself if the project was seen to be viable and a potential goldmine. The rakyat must be told who are the people behind all this. The fact that LPK is now bordering on insolvency and has to be bailed out with a dubious 'soft loan', the terms of which are still fuzzy leaves much to be desired. This will surely be the nation's biggest bail out to date.

It appears it is now left to the parliamentary Public Accounts Committee (PAC) to act and call for a probe into 'possible' corruption in the entire sordid affair. Malaysiakini also reports that Opposition leader Lim Kit Siang will make it the first order of business when the Parliament reconvenes on Monday to discuss the bailout, if he has his way that is.

From the Archive:
Port Klang: Potential tourist port city?
By Kang siew Li May 25 2007
BusinessTimes

The history of Port Swettenham, which is now Port Klang, dates back to 1901 when it started as the country’s primary gateway for trade. But despite a rich, century-long history, Port Klang is not on the tourist map. BT finds out why

DESPITE its success as a principal gateway for a huge portion of Malaysia's trade, Port Klang has remained what it is - just a port.

The port, which handles close to half of Malaysia's containerised cargo remains largely a destination for only those who have dealings with imports, exports and all matters related to maritime trade and the shipping industry.

There are no places of attraction for tourists - no shopping malls or cultural centres. Just a skyline dotted with gantry cranes, huge haulier trucks and other heavy machinery on the ground and miles and miles of warehouses, depots and godowns.

Port Klang is included in the voyages of many of the world's major shipping lines. Maersk Line, Mitsui O.S.K. Lines, Cosco Container Lines, Evergreen Marine, Hanjin Shipping and France's CMA-CGM call on the port, and international corporations such as Schenker Logistics, Kuehne & Nagle and BAX Global have set up their logistics activities in the vicinity.

"Even though Port Klang is Malaysia's oldest port, it is not a popular tourist destination. This is a pity because Port Klang has as much history as other foreign port cities," a senior manager at one of the ports in Port Klang said.

The 806ha Port Klang is occupied by three port terminals - Northport, Westports and Southport. Unlike port cities such as Capetown in South Africa, Dalian in China, Hong Kong, Singapore and Busan in South Korea, Port Klang does not offer a picturesque landscape and coastline.

The people who have dealings in Port Klang do not usually spend one minute more than neccessary in the area. They usually opt to stay at hotels in Petaling Jaya or Kuala Lumpur, which has more entertainment outlets and shopping facilities.

"Port Klang lacks sufficient accommodation, shopping centres, events and attractions, and nightlife to attract both local shoppers and international tourists," said the senior manager.

"First off, there are no five-star hotels in Port Klang. The nearest hotel from Port Klang is Crystal Crown Harbor View, a three-star hotel.

"There are also no world-class shopping centres in the vicinity. The closest town is Klang, one of the oldest towns in the country. While you can find malls like Bukit Raja Shopping Centre, Klang Parade, Ocean-Klang and Shaw Centrepoint in Klang, they cater mainly to the local population," he added.

Large commercial vehicles are a regular sight on roads as they rumble in and out of the ports.

"Many people have come to view Port Klang as dirty, crowded and badly planned. This is sad, considering that Port Klang is the main gateway to the country," said the senior manager.

International Shipowners Association of Malaysia chairman Datuk Abdul Latif Abdullah concurs.

"Port Klang is not a port city, but very much a trading centre. It is not a destination for tourists and locals," he said.

"In my opinion, it is a practical port purely focused on handling cargo inflow and outflow," he told Business Times.

He believes that for Port Klang to become a port city, it should have a vibrant waterfront.

"Currently, there are no waterfronts or social activities or attractions to lure tourists to make a trip to the port," said Abdul Latif, who is also Mitsui O.S.K. Lines (M) Sdn Bhd executive director.

Plans to build a tourism project called Harbour City on a 8.28ha site near the Selangor Royal Yacht Club was announced in 1997 and the Selangor State Government had given Asa Niaga Sdn Bhd the task to undertake the project.

The Harbour City project was expected to take between 10 years and 15 years to complete and will cost RM1.5 billion. The project features a passenger terminal, shops, a hotel, a marina, an office tower and chalets. But project has nottaken off.

Evergreen Marine Corp (Malaysia) Sdn Bhd vice-chairman Ooi Lean Hin said poor town planning has limited Port Klang's ability to become a port city.

"As one drives through Port Klang and its surroundings, one gets the impression that the place is not properly planned. There is a lack of well designed and promoted local activities and facilities. For instance, you can't find a modern commercial complex in Port Klang. As a result, most shipping companies have to operate out of shopoffices," he said.

Klang-based WCT Land Bhd executive director and chief operating officer Lai Yeng Fock said there have to be more promotional activities to attract tourists to the area.

"So far, there is not enough being done to promote Port Klang as a tourist destination. Even if there were, they are done on an ad hoc basis," he said.

Lai said nonetheless, the Government has been making a lot of efforts in developing Port Klang, promoting it as a halal hub and the Port Klang Free Zone as an ideal place for investments.

"Eventually these businesses will help Port Klang develop into a port city," he said.

Former Port Klang Authority (PKA) chairman Datuk Yap Pian Hon said Port Klang, with its interesting history, has great potential in the tourism industry and to be redeveloped into a world-class port city.

But he is aware that there is currently a lack of tourist information, promotional activities and developments to attract tourists to the port and a lack of masterplan to make it a port city.

During his three-year tenure at PKA since June 2004, Yap started the ball rolling by taking steps to change the status of land in Port Klang in order to manage it more effectively.

He has successfully recategorised land at Port Klang that was originally railway reserve land into port reserve land and PKA land.

In addition, he successfully resettled squatters occupying land under the port authority's jurisdiction, which include some prime sites with waterfront views. The land will be used either for port activities or for commercial, residential or tourism development.

PKA recently submitted a proposal for a 20-year masterplan to the Transport Ministry for approval, which may be the catalyst for making Port Klang a port city.

"The proposed masterplan is from 2010 to 2030 and will detail not only the use of land owned by the port authority, but also how to promote the township. It may include the development of Port Klang into a port city.

"But first, we have to get the ministry's approval before we can appoint a consultant to draw up the masterplan," said Yap.

Nonetheless, Port Klang has a long way to go before becoming a port city as it requires extensive development of facilities and attractions which involve huge costs.

"With the land issue settled, now comes a new chapter, and it is up to PKA to continue to pursue the plan to develop Port Klang into a port city. Its success will depend on the port authority and the support it gets from the various other government agencies," he said.

PKFZ identifies operator of hotel, expo centre
Published: 2007/11/26
BusinessTimes

PORT Klang Free Zone Sdn Bhd (PKFZSB), the manager and marketer of the RM4.6 billion free zone in Pulau Indah, said it has identified a local hotel group to manage and operate the four-star hotel and exhibition centre in the zone.

The 135-room hotel and exhibition centre is expected to be completed by the end of next month and open for business before the end of the first quar-ter next year.

"The company is a local but reputable hotel operator.

"We should be announcing its name soon," Port Klang Free Zone Sdn Bhd general manager of business development Chia Kon Leong said.

Apart from the hotel and exhibition centre, PKFZ offers 298.4ha of open land for long-term, 512 pre-built light industrial units and 4,628sq ft of office space in its business complex.

Chia said the PKFZ project will be fully completed by the end of this year to coincide with the completion of the main access road into the zone.

The flyover bridge to neighbouring Westports, meanwhile, will be completed by the first quarter of next year.

PTP container traffic up strongly


Last year's 14.5 per cent increase in TEUs is attributed to the continued strong global container trade, particularly the Asia to Europe route

THE Port of Tanjung Pelepas (PTP), one of the top 20 busiest ports in the world, handled 5.5 million TEUs last year, an increase of 14.5 per cent from 2006.

The company attributed the impressive growth to the continued strong global container trade, particularly the Asia to Europe route and the strong performance recorded by existing customers.

PTP chief executive officer Harun Johari said another factor was the desire and commitment shown by PTP employees.

He said these favourable factors had enabled the company to be transformed into a major transshipment hub and became Malaysia's largest container terminal today, just within a span of eight years.

"Global container trade is expected to grow from eight to 10 per cent annually for the next five years. The demand for port capacity to handle this growth will be significant. It is therefore important for us to be able to cope with the growth by boosting our capacity from time to time.

"With the availability of ample space for expansion, we are ready to meet the needs of our existing and new customers," he said.

Harun said PTP took delivery of four new quay cranes and eight rubber tyre gantry cranes in 2007, adding that orders for additional new equipment to beef up its existing fleet of cranes are underway and would be progressively delivered this year.

He appreciated the support given by the state government, adding that both sides are currently working together to further deepen the access channel.

"This, coupled with the planned construction of two new additional berths, will ensure PTP continues to provide the needed capacity and meet the high productivity levels demanded by its customers," he said.

Currently, foreigners have invested a total of RM3 billion at the Pelepas Free Zone. Last year, the company attracted twice as many number of new customers compared to 2006.

"We now have more than 50 global brands operating a diverse range of businesses within our Free Zone. To accommodate the growing interest of potential investors in our Free Zone, we are now actively developing additional land to meet the demand.

"We are ready to complement the Iskandar Development Region's growth. This is evident in the marked increase of local shippers using PTP as their preferred port," he added.

RM14mil boost for straits’ security
Saturday January 26, 2008
TheStar

PUTRAJAYA: Users of the Straits of Malacca can expect better security along one of the world’s busiest shipping lanes, thanks to assistance from Japan that will allow improvements and enhancements to Malaysia’s maritime security equipment.

A grant from the Japanese Government will see RM14.2mil provided to enhance the Malaysian Maritime Enforcement Agency’s capacity for security in the straits and Malaysian territorial waters.

The signing of the exchange of note for the programme was held yesterday, with Foreign Ministry secretary-general Tan Sri Rastam Mohd Isa representing the Government, while Japan was represented by its ambassador to Malaysia, Masahiko Horie.

In his speech, Rastam said Malaysia, being one of the littoral states, had the primary responsibility over the safety of navigation, environmental protection and maritime security in the straits.

Port Klang Free Zone secures 4 investors

By Kang Siew Li Published: 2008/02/10


The marketer of the RM4.6 billion free zone in Pulau Indah is also continuing talks with another 50 companies with a potential investment of RM610 million


PORT Klang Free Zone Sdn Bhd (PKFZSB), the manager and marketer of the RM4.6 billion free zone in Pulau Indah, Selangor, has secured four new investors, bringing the total confirmed investment since its inception in November 2006 to RM734 million.

"The confirmation of the latest investors brings to 43 the number of confirmed tenants in Port Klang Free Zone (PKFZ)," PKFZSB director Tengku Datuk Zainal Rashid told Business Times in an interview.

"We are continuing negotiations with another 50 companies with a potential investment of RM610 million," he said.

Having to deal with a lot of flak for the huge cost of developing the free zone and the pullout of Jafza International from the project, PKFZSB has been working overtime to create awareness and bring investments into PKFZ.

Tengku Zainal, who is also the past president of the Malaysian International Chamber of Commerce and Industry, acknowledges that much still needs to be done to create greater awareness on the economic benefits of investing in PKFZ.

"While the shipping and logistics community is aware of PKFZ, there are still some sections in the manufacturing industry and small and medium enterprises that are not fully aware of the advantages of investing in the free zone. We are now increasing our efforts to reach out to these groups," he said.

The 405ha free zone offers 512 light house/warehouse units, 258ha prepared industrial sites for long-term lease and 500,000 sq ft of office space. PKFZ also has a 135-room business hotel and exhibition centre, which is scheduled to be opened by the end of second quarter.

"We have removed or reduced a lot of red tape that normally hinders the setting up of a business. For instance, an investor can start a business in PKFZ within a week as we have set up a one-stop centre to liaise with relevant parties and bodies to ensure quick and smooth application," said Tengku Zainal.

"Another major draw card is the incentives from the Malaysian Industrial Development Authority such as no sales and service tax or duty fees on goods produced and exported, full repatriation of profits and 100 per cent foreign equity," he added.

Tengku Zainal is one of 10 directors appointed by the Transport Minister to serve one-year terms on the board of PKFZSB. PKFZSB comes under the purview of Port Klang Authority (PKA), which owns PKFZ.

"Of the 10 directors, two are alternate directors. Three of the directors are also from the private sector (namely Tengku Zainal, Federation of Malaysian Manufacturers of Selangor chairman Tan Sri Dr James Alfred, Westports Malaysia Sdn Bhd executive chairman Tan Sri G. Gnanalingam). We meet once a month. All of us are mandated to see the development and progress of the free zone. We have to pull our resources and ideas and consult with the management on how to promote PKFZ," he said.

Tengku Zainal believes that PKFZ is on the right track.

"PKFZ is a national project. It will further enhance Port Klang as the main gateway to the country. We are in the process of generating employment, new business and earn foreign exchange for Malaysia.

"It just takes time to develop a new thing like this. Dubai also took nearly 10 years to develop the Jebel Ali Free Zone. We are only two years old," he added.

More shipping lines to switch to Malaysia within the next decade
22 Feb 2008 3:54 PM
THEEDGEDAILY

KUALA LUMPUR: More shipping lines are expected to switch hubs to Malaysia within the next five to 10 years, drawn by Malaysian ports’ attractive pricing and capability in handling cargo volumes.

Westports Malaysia Sdn Bhd director Ruben Emir Gnanalingam told The Edge Financial Daily that while Singapore has more shipping line hubs currently, the island state had limited capacity and prices in Malaysia were still substantially cheaper.

Singapore is also currently the largest handler of trans-shipment cargo volume in the Southeast Asian region, doing 28 million twenty-foot equivalent units (TEUs) of the 50 million in Southeast Asia while Malaysia does 15 million TEUs. Of the 15 million TEUs, Westports is aiming for five million TEUs this year, Ruben said.

Asked if he saw strong competition from other Southeast Asian countries, Ruben said that there was little threat. “The three main ports for trans-shipment cargo currently are Westports, the Port of Tanjung Pelepas and Singapore. We don’t foresee any particular new threat and there are no new ports being built in the region for some time yet.”

He added that trans-shipment cargo volume in the Southeast Asian region was growing between 10% and 15% a year with an estimated 55 million TEUs in 2008.

“The market is growing fast and there is a lot of room for growth, we can all grow together,” he said.

Earlier, Ruben told reporters that Westports expected its new 600-metre berth to be fully operational by the fourth quarter of this year.

The berth is part of CT5; a new container terminal Westports is constructing as part of its RM800 million three-year expansion plan to boost annual capacity by some 30%. The ports operator breached the four million TEU mark in 2007.

He was speaking after the announcement of Westports’ RM800 million-sukuk musyarakah medium term notes programme to finance its RM800 million expansion plan.

The sukuk will be utilised to refinance Westports’ existing bank borrowings, to finance the construction of new container terminals and acquiring machinery and equipment. The first issuance, targeted for mid-March, will be based on a book build basis.

Please merge these 2 threads...
http://www.skyscrapercity.com/showthread.php?t=727216