MALAYSIA | Port Of Tanjung

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UTM ISKANDARnet GPS active station successfully installed
August 9th:
http://web.utm.my/today/index.php?op...sk=view&id=783



Gelang Patah, August 9th:: The Port of Tanjung Pelepas (PTP) in collaboration with Universiti Teknologi Malaysia (UTM) has utilised the locally developed Global Positioning System (GPS) active network station system for the use of maritime sector at PTP port.

The system known as ISKANDARnet is a GPS positioning support system that provides a precise and accurate GPS satellite data correction services. This one of its kind system is developed through research activities by UTM researchers from the Faculty of Geoinformation Science & Engineering and has a coverage of Iskandar Malaysia Development Region (IDR) which will connect PTP in Gelang Patah, Community College in Pasir Gudang and UTM in Skudai.

PTP has taken the initiative to enhance its positioning system by placing ISKANDARnet at its port. This collaboration between the two parties was finalised recently in a MoU signing ceremony at Tanjung Pelepas.

The MoU was signed by the Deputy Vice Chancellor (Research & Innovation), Prof. Dr. Marzuki Khalid on behalf of UTM while for PTP, the documents were signed by its Chief Executive Officer, Captain Ismail Hashim.

“With this system, PTP can fully utilise the data from the GPS satellite for the port’s navigation and other uses accurately. PTP is always open and prepared to work together with any research institutions to enhance the current positioning system in our port,” said Ismail.

“The ISKANDARnet GPS system gives an edge to PTP in catering to the latest infrastructure development for the comfort of our customers in the port vicinity. The installation of the GPS station in PTP does not only assist port activities but would also benefit the development of the IDR area,” he added.

According to Marzuki, “PTP’s commitment has shown that this system has the potential to be developed and is applicable for navigational activities, maritime and positioning in ports. Apart from that, it has also created a beneficial collaboration between the university and industry to develop local research products”.

UTM will do the maintenance work of the system for 2 years in PTP. For the time being, UTM has worked with researchers from the Satellite Navigation and Positioning Lab, University of New South Wales (USNW), Australia to improve the ISKANDARnet system.

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PTP eyes govt-guaranteed sukuk
Published: 2009/10/08

Malaysia’s Port of Tanjung Pelepas plans to issue RM1-2 billion (US$292.4-US$584.8 million) of government-guaranteed Islamic bonds to fund its expansion, a source familiar with the deal said today.

The paper will have maturities of up to 10 years, said the source, who asked not to be identified as the deal has not been publicly announced.

Another source said the paper would be issued by year-end.

Port of Tanjung Pelepas was not immediately available for comment.

The Port of Tanjung Pelepas Islamic bonds, or sukuk, come after an earlier RM5 billion government-guaranteed bond issue by the Terengganu Investment Authority, the investment arm of a Malaysian state.

Bankers say the Malaysian government will be raising more funds through state-linked firms as it ratchets up spending to woo foreign investment and to pull its trade-dependent economy out of a recession.

Malaysia’s economy was officially forecast to shrink 4-5 per cent this year but the central bank has said this estimate would be revised, after GDP fell by a smaller-than-expected 3.9 per cent in the second quarter from a year ago.

Port of Tanjung Pelepas is 70 per cent-owned by Malaysian infrastructure group MMC Corp and is located at the southern end of the Malacca Straits, Asia’s busiest shipping route.

Islamic bonds are usually structured as profit-sharing or lease-based agreements to avoid paying interest, which is prohibited by the religion.

Sukuk issuance plummeted 56 per cent to US$14.9 billion in 2008, according to Standard & Poor’s, but there are early signs that a global economic recovery is bringing some issuers back to the market.

A newspaper reported that water company Pengurusan Aset Air will sell RM20 billion of sukuk to refinance existing debt and for working capital. - Reuters

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PTP building up hinterland cargo volume
The National Maritime Portal - www.portsworld.com - Nov 05, 2009

Port of Tanjung Pelepas (PTP), the country’s premier transhipment terminal, is working towards increasing hinterland cargo volume to achieve a more sustainable business model, says chief executive officer Captain Ismail Hashim.

On average, PTP now handled 95% transhipment and 5% hinterland cargo, he said.

“We feel that we have to strike a better balance to achieve a more sustainable business model,” he told StarBiz via e-mail.

Development in Iskandar Malaysia, which included logistics, would in turn support hinterland cargo growth, he said.

“In this respect, PTP, along with its sister companies Johor Port and Senai Airport, will play complementing roles to further strengthen the logistics sector in Johor.

“The presence of strong logistics infrastructure in Iskandar Malaysia and Johor will attract investors, manufacturers and industries that are looking for strong and efficient logistics backbone,” Ismail said.

This would result in an increase in Johor’s hinterland volume, he added.

PTP’s 1,000-acre free-zone land has also been successful in attracting brands, contributing to the hinterland volume of PTP.

“Companies which are already rooted in Pelepas Free Zone include Ciba Vision, Flextronics, BMW, JST as well as logistics players such as Maersk Logistics, Nagai Nitto, Schenker Logistics and Century Logistics.

“We are continuously marketing the free-zone land to attract more players,” Ismail said.

The port’s aims to quadruple its volume in the next 20 years augurs well for hinterland cargo.

Ismail said in line with the expected increase in volume and its long-term goal, PTP would have to expand its port infrastructure.

“Some of the factors that shipping lines look for when deciding on a port of call is the accessibility to the port, operational efficiency and capability to handle current and future volumes (scalability).

“In the case of PTP, we belief we will be able to achieve this due to the value propositions that we have to offer,” he said.

PTP currently has 12 berths and a terminal-handling capacity of 10 million TEU’s (twenty-foot equivalent units) per annum.

Ismail said it had the space and potential to build up to 95 berths with a terminal-handling capacity of more than 100 million TEUs.

PTP handled about 5.6 million TEUs last year.

On the current business environment, Ismail said it had been very challenging for all port operators globally due to the economic down-turn.

“However, PTP has shown out-standing performance in weathering this stormy condition, especially in the second half of the year,” he said.

He noted that PTP registered a 3.4% increase in volume as at September compared with the same period last year.

“Despite the downturn, we expect to see some growth this year via the new services introduced through our existing and new customers such as CMA CGM,” he said.

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Five-year forecast expects 3.4 percent growth across all modes
The Journal of Commerce Online - Nov 05, 2009

The Port of Tanjung Pelepas expects throughput growth of 9 percent in 2009 up to 6.1 million 20-foot equivalent units, compared to 5.6 million TEUs in 2008, according to the Malaysian national news agency, Bernama.

The port recently signed an agreement with French shipping company CMA CGM.

Port capacity is 8 million TEUs per year and is expected to grow to 12 million TEUs within five years, said Chairman Mohammad Sidik Shaik Osman.

PTP has been competing successfully to attract cargo business away from its nearby rival, Singapore. The port offers favorable handling rates and tax-free logistics to international companies, according to the Malaysian Freight Transport Report

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The next two years seen as trying times for growth
The Star - Nov 17, 2009

GELANG PATAH: Port of Tanjung Pelepas (PTP) sees 2010 and 2011 as the most challenging years for growth as the global economy should enter a recovery period after almost a year of recession.

Chief executive officer Capt Ismail Hashim said PTP is like any other port in the world and depended on the global trade activities and volumes.

He said in the last 12 months or so, all port operators had been operating in a very challenging business environment due to the economic downturn.
Capt Ismail Hashim

“We are doing quite well despite the unfavourable economic situation and for next year we are looking at double-digit growth,” Ismail told StarBiz recently.

He said in September and October, PTP registered a 3.4% and 5% increase in volume respectively compared with the same months last year.

Ismail said the port handled 4.9 million TEUs (twenty-foot equivalent units) in the first 10 months of the year and was confident of recording 6 million TEUs in 2009 against 5.6 million
TEUs in 2008.

He said last year, PTP had captured 8% of South-East Asia’s total port market and expected to increase the market share to 10% this year.

Although there were already indications the global economy was on the road to recovery based on the economic figures released from the United States and Japan, it was still too early to rejoice, he said, adding that there were 10% reductions in the total global container throughput in the last one year and the outlook for 2010 was not that rosy as it was still uncertain where the global economy would be heading.

“We handle 95% transhipment and 5% hinterland or local cargo and want to increase the latter to 20% in our short- to medium-term business plan,” Ismail added.

He said the logistics sector, one of the five existing economic pillars in Iskandar Malaysia, was being developed and strengthened under the Iskandar Comprehensive Develop-ment Plan from 2006 until 2025.

The other four pillars are electrical and electronics, petrochemical and oleochemical, food and agro-processing and tourism.

Port of Tanjung Pelepas has 12 berths and the capacity to handle 10 million TEUs yearly
The five existing core sectors are health services, educational services, financial services, ICT and creative industries.

Ismail said the development and presence of strong logistics infrastructure in Iskandar would attract investors, industries and manufacturers which in turn would benefit service providers such as PTP.

PTP, together with Johor Port and Senai Airport which are closely linked to business tycoon Tan Sri Syed Mokhtar Al-Bukhari, would be among the beneficiaries as these entities are located within the five flagship development zones in Iskandar.

“Apart from Iskandar, the Singapore factor will also benefit us by attracting haulers from there to PTP.”

He said PTP would expand its port infrastructure in line with the expected increase and long-term goal and two new berths would be added under its phase two expansion plan.

Ismail said the port would be calling for tender early next year to build the 13th and 14th berths. Work on them should start in the third quarter of 2010 and it would take 18 months to complete.

PTP currently has 12 berths and a terminal-handling capacity of 10 million TEUs.
He said under the phase three expansion plan, the port would build eight new berths and include land reclamation and dredging.

“We are looking at organic growth and our long-term plan is to have 95 berths where our capacity will reach 150 million TEUs,” said Ismail.

He said PTP’s 404.68ha Pelepas Free Zone (PFZ) had 50 clients now with an average warehousing occupancy rate of 68%.

Companies with a presence in the PFZ include CIBA Vision, Flextronics, BMW, JST, Maersk Logistics, Nagai Nitto, Schenker Logistics and Century Logistics.

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The Pelepas Free Zone: More Than Just Cost Advantages
Site Selection Magazine - Nov 18, 2009

Current global economic circumstances might prompt some multinationals to scale back operations for the time being. For others – those with clear logistics and cost-of-manufacturing advantages – now might be the time to grow. Among the companies to have found both advantages in the Pelepas Free Zone at the Port of Tanjung Pelepas (PTP) are Flextronics, JST Connnectors, Schenker Logistics, CIBA Vision and many others. MNCs with locations at PTP, in the Iskandar Development Region in Malaysia’s southernmost point, seek a southeast Asian base from which to serve the region cost-effectively and efficiently.

The 1,000-acre Pelepas Free Zone includes 400 acres dedicated to logistics and distribution activity, international procurement centers and warehousing; 600 acres is a Free Industrial Zone for manufacturing. The adjacent Port features 44 quay-side cranes, 12 berths and 4.3 km. of linear wharf; it handles 10 million TEUs annually.

Six factors make the Pelepas Free Zone the preferred logistics and manufacturing hub for so many MNCs in the region. They are:

MORE > http://www.ptp.com.my/media-news.asp...t%20Advantages

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Shippers in Johor oppose port rationalisation
Published: 2009/11/26

SHIPPERS operating out of Johor have strongly opposed the proposed port rationalisation exercise involving Johor Port in Pasir Gudang and Port of Tanjung Pelepas (PTP) in Johor.

Under the rationalisation exercise, all container operations would be moved to PTP while Johor Port would handle all other cargo such as bulk and liquid shipments from January 1 next year.

In a statement issued yesterday, the Federation of Malaysian Manufacturers (FMM) Johor Branch argued against consolidation of the containers handling functions between the two ports, citing potential disruption of manufacturing operations, substantial increase in logistical costs, inadequate readiness at PTP and concerns on cargo security.

FMM Johor Branch said the proposed move would cause disruptions in operations for manufacturers not only in Pasir Gudang but in the Tampoi and Tebrau Industrial Estates.

It also estimates that the haulage costs are expected to double after taking into account the higher port charges at PTP.
“The sudden introduction of the weighbridge charges of RM7.50 per container at PTP is unjust. It was never implemented prior to the rationalisation,” it added.

FMM Johor Branch also said PTP was not ready for such a move because there are only two main line operators operating in PTP notably Maersk and Evergreen.

It calls on the federal government to maintain the status of Johor Port and ensure container operations there are continued.
“Manufacturers must be allowed to decide the port of choice through market forces,” it said.

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PTP, FMM Johor to let Cabinet decide on port consolidation
By Anis Ibrahim Published: 2009/11/27

THE Port of Tanjung Pelepas (PTP) and the Federation of Malaysian Manufacturers' (FMM) Johor branch have agreed to leave the final decision to consolidate PTP and the Johor Port to the Cabinet.

PTP deputy chief executive officer Azlan Shahrim said the consensus was reached after a two-hour meeting between PTP and FMM Johor at the Johor Port office in Pasir Gudang.

"While we believe that there are clear merits to the proposal, we recognise that it will only be implemented after consultation with port users and other stakeholders including the federal and state governments and the Johor Port Authority.

"The views of our stakeholders are essential to the success of this exercise," he told Business Times yesterday.

The announcement of a port rationalisation exercise involving PTP and Johor Port has been met with opposition from shippers, particularly those operating out of Pasir Gudang.

Under the proposal, all container operations will be moved out to PTP while Johor Port will handle all other cargo such as bulk and liquid shipments from January 1 2010. Both PTP and Johor Port are owned by MMC Corp Bhd.

FMM Johor says the move will disrupt operations for manufacturers not only in Pasir Gudang but in the Tampoi and Tebrau industrial estates.

Azlan said the consolidation was proposed by MMC Corp as Johor Port was congested and operating at full capacity with no room for expansion.

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MISC, PTP Mutually Agree To Terminate JV Agreement
December 17, 2009 19:42 PM

KUALA LUMPUR, Dec 17 (Bernama) -- MISC Berhad, Malaysia's leading international shipping line, and Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) have mutually agreed to terminate a Joint Venture (JV) and Shareholders' Agreement inked on April 29, 2008 following the shipping line's withdrawal from the Grand Alliance.

In a statement, MISC said the agreement was signed to form a joint-venture company called "PTP-MISC Terminal Sdn Bhd" (JV Co) to serve MISC and other members of the alliance to develop Port of Tanjung Pelepas into the region's main transshipment hub.

Grand Alliance is a grouping of shipping giants comprising Hapag-Lloyd, NYK, OOCL and MISC, formerly known as Malaysia International Shipping Corporation Berhad.

However, following MISC's withdrawal from the alliance, effective Jan 1, 2010 and restructuring of its liner business to be a leading Intra Asia Liner operator, PTP and MISC had agreed to rescind the JV Agreement.

MISC, a subsidiary of Petronas, will nevertheless continue to use Port of Tanjung Pelepas in Johor via a direct Terminal Services Agreement with PTP.

PTP, a 70 per cent-owned subsidiary of MMC Corporation Bhd, is the operator of the Port of Tanjung Pelepas.

The statement said the termination would not have any effect on the earnings of the MISC Group in the financial year ending March 31, 2010.

-- BERNAMA

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PTP posts another year of growth
Published: 2010/01/12

THE Port of Tanjung Pelepas (PTP) recorded another year of growth in 2009 and retained its position as Malaysia's leading container terminal.

Chairman Datuk Mohd Sidik Shaik Osman said the port closed 2009 with a container throughput of 6 million twenty equivalent units which was 7.5 per cent higher than 2008.

This growth was achieved against a backdrop of shipping lines and ports facing double digit drops in volume due to the global economic downturn.

The increased throughput was also achieved with lower overall costs given considerable pressure on rates during this period.

" We are fortunate to be one of very few ports in the world which recorded an increase in container volume in 2009.

" PTP managed to grow the port for a number of reasons. While existing customers contributed with new services, new volumes brought in by French shipping line CMA-CGM also added to the numbers," Sidik said in a statement.

He added there was a nine per cent increase in local volume from the Johor industrial hinterland as more shippers were now using PTP for their import and export needs.

Saying that more shipping lines called at Port of Tanjung Pelepas, he added the port handled 20 per cent of Johor's hinterland cargo last year.

" Apart from Evergreen and Maersk Line, we have CMA-CGM, MISC and other shipping lines providing direct services to many global destinations.

" Local cargo shipped out of PTP do not need to go through other transshipment ports before they can connect to bigger long-haul vessels as they are already calling at PTP directly," Sidik said.

He said this benefited shippers as it reduced point-to-point transit time, eliminated the risk of missed vessel connections at other transit ports and provided end-to-end savings in the overall logistics costs.

On PTP's outlook for 2010, Sidik predicted an overall challenging year ahead despite signs of a global economic recovery.

" 2010 will clearly be a challenging year. We expect lower operational costs for shipping lines to be a key focus area",

Sidik said, adding that the port viewed this as an opportunity as shipping lines would look for more efficient and cost-effective alternatives.

" PTP has much to offer both existing and potential new customers. Cost efficiency, world class service levels and unlimited capacity allows customers to extract greater efficiencies that will ultimately improve their bottom line," he said. - Bernama

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PTP On The Rise
www.tradewinds.no - Jan 13, 2010
By Gary Dixon

Malaysia’s Port of Tanjung Pelepas (PTP) has bucked the trend of falling volumes with a record total in 2009.

The country’s biggest terminal said throughput reached 6m teu last year, up 7.5% from 2008’s total.

Chairman Sidik Shaik Osman said: “We are fortunate to be one of very few ports in the world which recorded an increase in container volumes in 2009.”

He put the growth down to new services from existing customers Maersk and Evergreen, plus fresh volumes brought in by new signing CMA CGM of France.

There was also a 9% increase in local volume from the Johor industrial hinterland.

Looking ahead, Sidik said markets would still be challenging in 2010.

“We expect lower operational costs for shipping lines to be a key focus area,” he added.

“We do, however, see this as an opportunity for PTP when shipping lines look for more efficient and cost-effective alternatives”.

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Port of Tanjung Pelepas hits 6m teu mark
Container Management (Jan/Feb) 2010 issues - Mar 02, 2010

The Port of Tanjung Pelepas (PTP) recorded another year of growth in 2009 retaining its position as Malaysia’s leading container terminal.

PTP Chairman Datuk Mohd Sidik Shaik Osman said that PTP closed 2009 with a container throughput of 6m teu, 7.5% higher than 2008. This growth was achieved in a very difficult year for the industry, where many shipping lines and ports faced double digit drops in volume due the global economic downturn. The increased throughput was also achieved with lower overall costs given considerable pressure on rates during this period.

“We are fortunate to be one of very few ports in the world which recorded an increase in container volumes in 2009” Sidik said.

PTP managed to grow for a number of reasons. While existing customers contributed with new services, new volumes brought in by PTP’s latest signing, French shipping line CMA-CGM also added to the numbers. There was also a 9% increase in local volume from the Johor industrial hinterland. More Johor shippers are now using PTP for their import and export needs and the port handled 20% of Johor’s hinterland cargo last year.

“We now have more shipping lines calling at our port compared to the early years. Apart from Evergreen and Maersk Line, we have CMA CGM, MISC and other shipping lines providing direct services to many global destinations. Local cargoes shipped out of PTP do not need to go through other transshipment ports before they can connect to bigger long haul vessels, as they are already calling PTP directly. This benefits the shippers as it reduces point-to-point transit time, eliminates the risk of missed vessel connections at other transit ports and provides end-to-end savings in the overall logistics costs,” Sidik said.

Sidik said that despite signs of the global economy recovering, 2010 will clearly be a challenging year with lower operational costs for shipping lines being a key focus area. However, Sidik sees this as an opportunity for PTP which provides more efficient and cost-effective alternatives.

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PTP raises thebar, leverages on productivity
Published: 2010/06/21
http://www.btimes.com.my/Current_New...#ixzz0rNz8FHEZ



PORT of Tanjung Pelepas (PTP) is leveraging on world-class productivity to build on last year's strong performance and enhance its competitiveness against regional ports.

Deputy chief executive officer Azlan Shahrim said PTP was now raising the bar after having met its productivity goal of 35 moves per hour compared to the industry average of 25 moves per hour.

"Higher productivity, lower operating costs and an increased capacity of 8.5 million twenty-foot equivalent units (TEUs) will enable the port to deliver a higher service level cost-effectively," Azlan said in an interview.

PTP, the country's largest container port and the fastest growing in Southeast Asia, is situated at the mouth of Pulai River, to the west of Johor Bahru.

Azlan said PTP handled six million TEUs last year, which was 7.5 per cent more containers over the previous year.

The increase, he said, was achieved during a difficult year when many ports around the world recorded a drop in volume.

According to Azlan, PTP's growth last year was the highest among the major ports worldwide.

With the global economy recovering this year, PTP is confident of extending its growth trend, he said.

"PTP's monthly volume in May this year was the highest recorded in the port's 10-year history," he added.

However, Azlan cautioned that "the question is sustainability as part of the growth is due to the restocking of inventory, which has depleted considerably from last year's economic downturn".

"Shipping lines have also reintroduced capacity into the market, which will exert pressure on freight rates. These factors make us cautious even as we experience recovery," he said.

PTP's strategic focus now is to enhance feeder connectivity and increase its mix of local cargo, which will attract more shipping lines to the port, Azlan said.

"Three of the world's top four shipping lines are already calling at PTP," he said, listing Maersk, which is ranked number one, CMA-CGM (ranked number three) and Evergreen (ranked number four).

Azlan said the huge vessels calling at PTP offered direct sailing to Europe and the US without having to first transship cargo at neighbouring ports.

"This allows for shorter transit times. Our exports will reach faraway destinations faster and this efficient supply chain enhances the competitiveness of Malaysian goods," he said.

Azlan said that PTP's ample capacity meant that there was no congestion which would otherwise have increased cost to port users.

"These advantages make PTP well-positioned to be an efficient gateway port for Johor's local hinterland cargo," he said. - Bernama

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Southeast Asian ports ready for growth in 2010
Shipping Gazette - Mar 10, 2010

Recently in The Container Shipping Manager we looked at the performances of various ports throughout a number of regions the world over.

It came as little surprise to see that China’s ports, while a number suffered declines in 2009, are still the undisputed world leaders in volumes handled. This disparity with the rest of the world should ensure that its position will remain dominant for the foreseeable future.

But China’s rise in the shipping industry has been well documented to date. However, rising steadily through the ranks have been the ports of Southeast Asia.

Over the past few years ports in Malaysia, Singapore, Thailand and Indonesia have been growing at a constant, steady pace, placing the region as the second busiest in terms of port activity in the world, replacing the likes of Hong Kong, Kaohsiung and Busan in north Asia.

Today in The Container Shipping Manager we will take a closer look at this exciting region and its prospects for the post-financial crisis period ahead.

One of the standout ports in 2009 in the region was the southern Malaysian port of Tanjung Pelepas (PTP). It was the only Southeast Asian port to actually record a rise in volumes for the year, up from the 5.6 million TEU to 6.02 million TEU, as reported in our earlier story.
Not only was it the only port in Southeast Asia to record growth, the 7.5 per cent jump in container volumes also made it the highest growing port in the world last year.

PTP managed to grow while other ports suffered double digit declines in 2009 because of its lower costs and as such was able to attract more customers at a time when shipping lines were desperately seeking to cut their expenses.

Aside from the port’s regular customers adding new services last year, PTP also benefited from new customers such as CMA CGM and MISC.

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PTP To Capitalise On New Opportunities Helped By Increased Capacity
www.bernama.com.my - Apr 21, 2010
By Wan Nor Azura Mior Abd Aziz

KUALA LUMPUR, April 21 (Bernama) -- Port of Tanjung Pelepas Sdn Bhd, owned 70 per cent by MMC Corporation Bhd, is well-placed to capitalise on additional demand and new opportunities once the global economic recovery gathers momentum this year based on its increased port capacity of 8.5 million twenty-equivalent-units (TEUs).

Last year, PTP chalked up a seven per cent increase in container volume by handling a throughput volume of six million TEUs, MMC's Chief Executive Officer, Datuk Hj Hasni Harun, said here on Wednesday.

The increased capacity was made possible with the completion of 12 berths last year and commissioning eight new quay cranes, 32 new rubber tyred gantry cranes and other port equipment.

He said MMC's strategy of acquiring PTP over the years has proven to be effective as it managed to ride through the extremely challenging period and remains on-track to achieve its vision to be the "Preferred Port of Choice in South East Asia".

This has made it the world's 17th busiest container port and the country's largest container terminal," he told Bernama.

"With its strategic location, attractive rates and world class efficiency, PTP is in an ideal position to capture new businesses and expand its market share in the container business," he said.

Hasni, who has also been appointed Group Managing Director effective May 3, said that the port also saw an increase in its domestic market share from 35 per cent in 2008 to 39 per cent in 2009.

"PTP also saw an encouraging 9.0 per cent increase in local volume from the Johor Industrial hinterland as more shippers are now using PTP for their import and export needs," said Hasni.

He also said that the port's major customers undertook a restructuring in their services to cut costs which resulted in higher transshipment volume calling at the port.

PTP chalked up a pre-tax profit of RM50 million last year while net profit was higher at RM173 million due to the impact of deferred taxes.

Combined with Johor Port which is wholly-owned by MMC, the group's market share of container volume among domestic ports improved from 41 per cent in 2008 to 44 per cent in 2009.

Last year, Johor Port posted a revenue of RM498 million, down two per cent from RM508 million in 2008.

"Johor Port will continue to serve as an important origination point for cargo, particularly from the adjoining Pasir Gudang hinterland," he said.

This mature port will continue to provide a steady annual income steam to the group, Hasni said.

The company also said, Johor Port handled 14,389,338 free weight tones (FWT) of conventional cargo consisting of dry bulk, break bulk and liquid bulk cargo through its port facilities.

Total container throughput stood at 844,856 TEUs last year.

He also said that the Multi-Purpose Terminal System (MPTS), which was one of the key components of Johor Port's information and communications technology, was scheduled to be launched by the middle of this year.

With its completion, the port would complete the integration of all online applications for terminal operations and warehouse planning, thus allowing it to provide a seamless online working environment.

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Government To Form National Port Council To Coordinate Port Management
www.bernama.com - Apr 22, 2010

PETALING JAYA, April 22 (Bernama) -- The government has agreed to set up the National Port Council to coordinate management of ports nationwide.

Transport Minister Datuk Seri Ong Tee Keat said further details on the matter would be announced later and that the setting up of the council, to be chaired by him, would not jeopardise the functions of existing port authorities.

"The cabinet and the National Economic Council have approved the formation of the National Port Council to coordinate matters pertaining to management of ports to further promote them at international level to attract more clients," he added.

Ong told this to reporters after the award giving ceremony for excellent achievements in the world standings of top container ports of the world at the Grand Dorrsett Hotel near here on Thursday.

At the function, the country's two leading ports, Port Klang and the Port of Tanjung Pelepas (PTP) were honoured for being in the list of the world's best 20 ports last year.

Port Klang ranked 14th, from 15th in 2008, while PTP moved up to 17th last year, from 18th the previous year.

According to Ong, PTP was also three ports in the world which showed positive growth last year, despite the world economic recession.

"Last year, only three of the world's best top 20 ports recorded a positive growth and among the three, PTP recorded the highest growth at 7.5 per cent, compared with the Port of Guangzhou and Port of Tianjin in China which recorded growth of 1.7 per cent and 2.4 per cent respectively," he added.

The Port of Singapore topped the world's best 20 ports with 25.866 million TEUs, followed by Port of Shanghai (25.0 million TEUs) and Port of Hong Kong with 20.98 million TEUs.

Port Klang handled 7.3 million TEUs and PTP 6 million TEUs.

Earlier in his speech, Ong said that ports and the shipping industry, particularly container handling, was a highly competitive industry.

"Ports must be attractive enough to accommodate the ever changing requirements and trends of the industry. The most significant trend is to move towards larger container vessels," he added.

He said that in the 1980's, the largest container vessels could accommodate just over 3,000 TEUs from today's vessels of 10,000 TEUs.

He said container shipping line operators were therefore under pressure to achieve economies of scale whereby a 50 percent increase in vessel size could result in 20 percent reduction in operating and voyage cost.

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Johor Port, PTP can still achieve cost savings
By SHARIDAN M. ALI Thursday August 12, 2010
http://biz.thestar.com.my/news/story...4&sec=business



An aerial view of Port of Tanjung Pelepas. MMC proposed to streamline
operations at PTP and Johor Port to reduce cargo leakages to Singapore,

PETALING JAYA: The expected cost savings from the consolidation of Johor Port and Port of Tanjung Pelepas’ (PTP) operations can still be achieved without changing their corporate structure, says Kenanga Investment Bank research head Yeonzon Yeow.

“The deferment of the rationalisation plan of the two ports will have minimal impact on their parent company, MMC Corp Bhd. Whether they consolidate or not, both ports are still within the group,” he told StarBiz yesterday. MMC owns 100% of Johor Port and 70% of PTP.

MMC proposed to streamline operations at the two ports to reduce cargo leakages to Singapore, which has been going on for many years due to better connectivity offered by Singapore ports.

The consolidation would also see Johor Port’s container operations in Pasir Gudang moved to PTP in Gelang Patah, turning the former into a non-containerised port.

But the Government shot down the idea last week due to the distance between the two ports, which is about 90km, as shippers and manufacturers operating in Pasir Gudang, Tampoi and Tebrau complained that they would incur higher transportation cost going to PTP.

OSK Research Sdn Bhd research head Chris Eng said with the deferment, the listing of MMC’s port units was unlikely to materialise soon.

“Nonetheless, we believe there is still the possibility of MMC list ing its other units, Gas Malaysia Sdn Bhd and Malakoff Corp Bhd within the next two to three years,” he said in a recent note to clients.

Eng said the deferment of the consolidation exercise would also result in PTP’s excess capacity being underutilised for the time being.

He said the main reason for the rationalisation between the two biggest ports in Johor was because the container operations at Johor Port was congested with minimal room for further expansion.

“The consolidation would boost container volume at PTP, helping it reach the eight million twenty-foot equivalent units level, which would then help to attract new customers,” he said.

[nazrey]

Flextronics woos investments into Iskandar
By Marina EmmanuelPublished: 2010/08/16
http://www.btimes.com.my/Current_New...#ixzz0wkkdecrx

ELECTRONICS manufacturing services giant Flextronics International Ltd whose presence in the vicinity of the Port of Tanjung Pelepas in Johor continues to expand, is also serving as a magnet to attract other investors to the Iskandar Development Region (IDR) .

The company's 1.4 million sq ft facility, which is the equivalent of 16 football fields, has some 5,000 workers on its payroll and serves as Flextronics' flagship facility for the assembly of solar modules.

"Our presence here in IDR places us in a competitive position, since we are supported by a matured supply chain," Flextronics Technology (Malaysia) Sdn Bhd general manager Koh Yew Wah told Business Times during a recent visit to the Pelepas Free Zone (PFZ) facility.

Besides offering vertical integrated manufacturing services, the Flextronics facility at PTP also boasts International Procurement Centre status.

"We are targeting customers who are looking for manufacturing sites where costs are comparatively lower and those wanting to venture into downstream activities," added Koh, saying that these could include solar module suppliers and those who integrate modules into solar power plants.

Other investors with a presence in the PFZ include CIBA Vision, BMW, JST, Maersk Logistics, Nagai Nitto, Schenker Logistics and Century Logistics.

Koh noted that Malaysia's position as a growing centre for the production of solar panels, serves as plus points for Flextronics.

"These include our proximity to solar original equipment manufacturing operations, localised resources and a world-class logistics solutions," , he said.

With customers located in markets like Europe and the US, Koh points to Flextronics' strategic location of being at the crossroads of the East-West trade routes, by virtue of the company's proximity to the Port of Tanjung Pelepas.

"Apart from giving us shorter transit days to the European Union markets, we can tap into direct ship and feeder service to the Port of Singapore, or use the services of any one of the 9 liners which serve the Port of Tanjung Pelepas," he added.

Koh said that Flextronics wants to help the country reduce its dependency on labour-intensive industries as a source of investments.

[nazrey]

PTP set to handle more containers
By ZAZALI MUSA Wednesday October 6, 2010
http://biz.thestar.com.my/news/story...0&sec=business



PTP’s monthly throughput volume in May stood at 572,444 TEUs, the highest
ever handled in a single month since it started operations 10 years ago.

Port confident of achieving 8% growth this year

GELANG PATAH: Port of Tanjung Pelepas (PTP) expects a healthy and sustainable growth this year despite operating in a challenging business environment.

The positive outlook is based on the port’s outstanding performance in the first half of 2010 when it registered 13% growth compared with the same period the previous year.

In May this year, its monthly throughput volume stood at 572,444 20-ft equivalent units (TEUs), the highest ever handled in a single month since it started operations 10 years ago.

Prior to that, the highest number of containers handled in a single month was 557,693 TEUs in August 2009.

“We managed to increase the number of containers handled and achieved the highest growth among the world’s top 20 container ports in 2009,” an official from PTP told StarBiz.

He said the achievement was commendable despite last year’s sluggish economy, which saw a drastic downturn in the containerised traffic sector worldwide.

Industry reports have listed only four of the world’s top 20 container ports that recorded growth in 2009, and all of them are in the region.

The four ports were PTP, which recorded 2.4% growth, and three Chinese ports – Qingdao (2.4%), Tianjin (2.3%) and Guangzhou (1.7%). Other heavyweights such as Singapore’s PSA experienced a drop of 13.5%, Hong Kong down by 14.3% and Shanghai by 10.7%.

The International Monetary Fund said in a report recently that the global economy was recovering better than expected but at varying speeds.

While most of the emerging and developing countries are experiencing steady growth, the growth in developed countries is not that impressive.

The United States and European economies are beginning to see a dip and the current downtrend in global container traffic would continue until the year-end.

“But we are confident that PTP will record 6.5 million TEUs this year, representing 8% growth from six million TEUs handled in 2009,” the official said.

He added that PTP would maintain its efficient services and provide top-notch services at competitive cost to clients.

Crane moves at the port now averaged 34 to 35 per hour, which is way higher than the industry average of 28 moves per hour.

He said PTP handled close to 80 vessel calls a week and with the current berths and 44 quay cranes, the port could handle up to nine million TEUs.