MALAYSIA | Port Klang

[nazrey]

Govt must act fast to make PKFZ profitable: Developer
By Joseph Sipalan
Published: 2009/08/21

THE government must act fast if it wants to make the Port Klang Free Zone (PKFZ) a profitable venture, says the project's turnkey developer.

Kuala Dimensi Sdn Bhd said of late, much attention has been given to the PKFZ scandal that nothing is being done to move the project forward.

Its deputy chief executive officer Datuk Faizal Abdullah said today, most of the buildings and facilities are already in place, but only some 20 per cent are occupied.

"The facilities will deteriorate quickly if they're left empty," he told a press conference in Petaling Jaya yesterday.

Faizal said Port Klang Authority (PKA), which owns PKFZ, needs to do more to further attract foreign investors to the free zone and bring in revenue for its coffers and contribute to the national economy.

"So much energy has been channelled into the dispute that PKA has lost focus in promoting and turning PKFZ into a success.

"We are not saying 'drop the case', but we need to re-emphasise that this (selling of PKFZ) is more critical. We can't just scrap it. We are not selling something that is not there. We've already built up the facilities," he said.

As of May this year, PKFZ signed up 56 companies with a combined investment of RM980 million. This translates into an occupancy of 18 per cent of the open land, 18 per cent of its light industrial units and 19 per cent of its office space.

The figures lag behind the project's initial target of becoming operationally self-sustaining by 2010 and achieving an occupancy rate of 80 per cent by 2012.

Faizal said the non-stop coverage of the PKFZ issue, where the company is accused of overcharging the PKA for land purchase and construction costs, has only driven potential investors away.

"This is a contractual dispute. All that we are requesting is bring the dispute to court. Let the court make its decision and the parties abide by it instead of having it on trial in the public domain," he said.

[nazrey]

Project to deepen Port Klang’s south channel
Monday August 17, 2009

PETALING JAYA: The world’s largest trailing suction hopper dredger arrived in Port Klang last week to carry out dredging works to deepen the port’s south channel, with works expected to be completed by the year-end.

The dredging contract was awarded by the Port Klang Authority (PKA) to Integrated Marine Works Sdn Bhd.

“It entails a work specification of deepening the south entrance to Port Klang from the current depth of 15.5m to 16.5m. The width of the channel is also being widened from 365m to 500m. This will enable the largest superpost panamax container vessels of drafts exceeding15m to pass one another safely while transiting the 8km channel,” PKA said in a statement.

PKA said the project would involve dredged volume of approximately 6.2 million cu m.

Integrated Marine Works has assured that the project would be completed before the end of the year.

[nazrey]

Port Klang Assemblyman's Position To Be Known After Hari Raya
September 02, 2009 18:19 PM

SHAH ALAM, Sept 2 (Bernama) -- Parti Keadilan Rakyat (PKR)'s Port Klang state assemblyman, Badrul Hisham Abdullah's fate will be known after Hari Raya, said Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim.

He said Badrul Hisham had been served with a show cause letter and needed to respond in 14 days on his inability to serve effectively as a state assemblyman.

Abdul Khalid declined to answer when asked if Badrul Hisham would have disciplinary action taken against him or if he would be asked to vacate his seat.

Speaking to reporters after chairing a state executive council meeting here Wednesday, he said: "A decision will be made after taking into account a discussion between Badrul Hisham and state assembly speaker, Teng Chang Khim."

Abdul Khalid said Badrul Hisham was not well now and could not attend the breaking of fast programme where the Sultan of Selangor Sultan Sharafuddin Idris Shah broke fast with the people at a mosque in Pandamaran last week.

"Badrul still receives his salary and allowance eventhough he is helped by state assemblymen friends in his duties as an elected representative," he said.

-- BERNAMA

[nazrey]

Dredging work of Port Klang's south channel to finish in Dec
Published: 2009/09/07

THE dredging of the south channel in Port Klang is expected to be completed in December this year.

The south channel, which will be 16.5m deep and 500m wide once completed, is now between 60 and 70 per cent done

"Initially, the plan was to deepen it to 17.5m but due to a constraint in funds, it is only being dredged to 16.5m from 15.5m, and widened to 500m from 365m," PKA assistant general manager Captain David R Padman said last Thursday.

He said the government was only able to allocate RM100 million for the dredging project.

The widening of the channel will enable the largest super post panamax container vessels of drafts exceeding 15m, to pass one another safely while transiting the 8km channel.

[nazrey]

CMA CGM's first On Dock Depot in Asia opens at Westports
Published: 2009/08/31



CMA CGM's first dedicated On Dock Depot (ODD) in Asia officially opened recently at Westports in Port Klang.

The ODD facility, located at CT5, is aimed at providing good customer service to the French liner's customers, especially in the local market which has grown tremendously this year.

Witnessing the milestone event were Westports Malaysia Sdn Bhd executive chairman Tan Sri G. Gnanalingam, executive director Ruben Emir Gnanalingam and CMA CGM ANL Malaysia managing director Simon Whitelaw as well as representatives from the local CMA CGM office and Westports.

Speaking at the opening, Whitelaw said plans for the ODD facility were looked into for sometime as a means to support its growing domestic business.

He said the ODD would provide fast turnaround of empties, quick delivery and better quality boxes.

"The ODD facility would provide another strategic base for our customers at Westports to help meet the growing demand generated by ever increasing levels of trade. Besides providing cleaning and repairs of empties, we also provide free inspection," he added.

He also pointed out that the ODD, which has access to the Free Zone and with a current capacity of 12,000 TEUs (20-foot equivalent units), has the potential to become a regional hub.

CMA CGM, the world's third largest shipping line, is Westports' number one customer.

[nazrey]

Westports box volume to grow by 5pc in next 10 years
By Presenna Nambiar Published: 2009/09/22

WESTPORTS Malaysia Sdn Bhd, the operator of Westports in Port Klang, expects its container volume to grow by 5 per cent in the next 10 years, as it celebrates its 15th year in business.

"Container volume grew by 9 per cent in the last 10 years, with a jolt in 2008/2009. Looking at the current world economy, to have 5 per cent growth in the next 10 years is the best we can look forward to," Westports executive chairman Tan Sri G. Gnanalingam told Business Times via an email interview.

Westports celebrated its 15th anniversary on September 10 2009.

Gnanalingam said he is confident that Westports will be able to meet its 4.5 million TEUs target by the end of this year.

"We are quite confident of sustaining this volume and of course will try to achieve 5 million TEUs by 2010," he added.

Gnanalingam also said in the last 15 years, Westports has not only managed to become among the top five ports in the world in terms of productivity, but assisted Port Klang in becoming the 15th largest port in the world, handling some 8 million TEUs (20-ft equivalent-units).

He said one thing ports can learn, after having to contend with the economic crisis, was that it needs to be prudent in terms of expansion capacity.

"However, we will continue to be supply driven and efficient to attract more shipping lines. As the 17th largest trading nation, we not only need efficient ports, but also more shipping lines to take our cargo."

[nazrey]

MTUC asks Port Klang to reappoint workers’ representative
Published: Wednesday September 23, 2009 MYT 11:33:00 AM

PORT KLANG: The Malaysian Trades Union Congress (MTUC) has called on the Transport Ministry to appoint a workers’ representative on the Port Klang Authority (PKA) board to look after the interests of the 20,000 port workers.

MTUC vice-president A. Balasubramaniam told Bernama on Wednesday that there has been no workers’ representative on the board since June last year following a revamp.

He said the MTUC disagreed with the ministry’s assertion that the PKA board should comprise professionals, namely those who could contribute to the port operations.

“Workers’ contribution to the port’s operations is vital and they should be represented on the board,” Balasubramaniam, who is also secretary of the Union of Employees of Port Ancillary Services Supplies, said.

He said the workers had been represented on the board since 1964, except from 1986 to 1994.

“We hope the ministry will reconsider and reappoint a representative as soon as possible for the sake of maintaining industrial harmony and efficient functioning of the port services,” he added. -- Bernama

[lohxy]

any news about southport (southpoint)?

[nazrey]

Port Klang Authority working to diversify income stream
By Presenna Nambiar Published: 2009/10/05

PORT Klang Authority (PKA) is working towards diversifying its income stream in an effort to bear the costs of running both Port Klang Free Zone (PKFZ) and its own operations.

"Of course, now we are currently self-sufficient, but with the PKFZ loan to the service, we will have to come up with more revenue streams to generate income," PKA general manager Kee Lian Yong told Business Times recently.

He was appointed in June to replace Lim Thean Shiang, who resigned earlier amid reports of a fallout with Transport Minister Datuk Seri Ong Tee Keat over the handling of the PKFZ controversy.

Lim was handpicked to take over the running of the port by the Transport Minister.

Kee, like Lim, was a member of the corporate sector, having headed listed companies such as Metroplex and Anglo-Eastern Plantations Plc.

He said the port authority is studying all options, but is mindful of its main role as trade facilitator.

"We believe there are a lot of opportunities. I would like to do more. As a man from the property sector, I can see that we have a lot of land here, and we have to look at how we can maximise the returns on that land," Lee said.

He said rather than just concentrating on growing its bottomline, the port authority has to also consider initiatives that will enable the industry to grow.

Kee declined to reveal the amount of cash that PKA has in its coffers, claiming that its cash reserves did not correctly reflect the financial health of the regulator, considering its huge debts, because of PKFZ.

In 2008, it was reported that PKA's main income comes from leasing of land under the port authority. The then general manager Datin O C Phang, had said that it made RM100 million per year.

Expenses on maintaining the port area, however, were said to come up to about RM80 million per year.

On his ambition for the port, Kee said he wants to create an equitable playing field for all players in the port industry.

"I don't want to sideline any party. In fact I hope that we can build a supply chain that benefits everybody, and also promote the growth of the port industry," Kee said.

[nazrey]

Special task force set up to make PKFZ more competitive
2009/10/07

KUALA LUMPUR: The government set up the special task force to ensure steady progress of the Port Klang Free Zone (PKFZ) development project, Chief Secretary Tan Sri Mohd Sidek Hassan said today.

He said the team would also identify weaknesses in the management in implementing the project and recommend measures for improvement if necessary.

These would include disciplinary or legal measures if there were individuals involved in wrongdoing or criminal action, Mohd Sidek said.

"The team will also identify and recommend measures or incentives to make PKFZ more competitive," he said in a statement.

Mohd Sidek said the government had decided that the task force, headed by him, would from time to time and if needed, called on those involved to join the meetings to give explanations and views.

He said the government had agreed to the composition of the task force,
comprising Public Services Department director-general Tan Sri Ismail Adam, Attorney-General Tan Sri Abdul Gani Patail, Finance Ministry secretary-general Tan Sri Dr Wan Abdul Aziz Wan Abdullah, Auditor-General Tan Sri Ambrin Buan, Port Klang Authority general manager Kee Lian Yong, and Lin Associates Sdn Bhd chairman and chief executive officer Tan Sri Dr Lin See Yan.

Also appointed were Skrine and Co senior partner Vinayak P. Pradhan, PriceWaterHouseCoopers Advisory Services managing director Chin Kwai Fatt, Malaysian Institute of Accountants president Abdul Rahim Abdul Hamid, and Malaysian Institute of Corporate Governance president Tan Sri Megat Najmuddin Megat Khas.

The task force secretary is Transport Ministry secretary-general Datuk Zakaria Bahari who will be assisted by the ministry''s deputy secretary-general (planning) Datuk Long See Wooi. - BERNAMA

[nazrey]

PKFZ, Marseille-Fos Port sign alliance pact
Published: 2009/10/27

PORT Klang Free Trade Zone (PKFZ) has signed a memorandum of understanding (MOU) with Marseille-Fos Port (MFPA) to boost the strategic alliance between them.

Transport Minister Datuk Seri Ong Tee Keat said the MOU was aimed at establishing a framework for the cooperation between PKFZ and MFPA, one of the largest ports in Europe, to promote the halal industry in Malaysia and France.

"The agreement aims to jointly explore and implement a coordinated marketing approach for the redistribution of halal products in Europe, Africa and Mediterannean territory and PKFZ will be carried through," he told reporters after officiating the Marseille Fos Port Authority Roadshow here today.

Earlier, he witnessed the signing of the MOU between PKFZ and MFPA. - Bernama

[nazrey]

PKFZ sees 534% increase in TEUs
Written by Sharon Tan Friday, 30 October 2009 15:02

KUALA LUMPUR: Port Klang Free Zone (PKFZ) achieved an increase of 534% from January to September this year in containerised cargo, registering 36,170 twenty-foot equivalent units (TEU) as compared to 6,021 TEUs for the previous corresponding period in 2008.

Transport Minister Datuk Seri Ong Tee Keat also said there was an increase in tonnage handling for the first nine months this year which saw a rise of 321% from 263,570 tonnes for the same period last year to 1.11 million tonnes.

"I am thankful that PKA and the PKFZ Sdn Bhd have put in enormous efforts over the past few months to turn PKFZ around.

"These statistics show my commitment to the PKFZ turnaround plan, which is some of the unfinished work that I have been talking about.

"With the recent signing of the MoU between PKFZ and Marseilles Fos Port authority, we are confident and hopeful that this will give PKFZ an additional boost," said Ong through his blog www.ongteekeat.net.

He added that the geographic advantage of Marseilles port would definitely serve as a very good distribution hub for halal and other products from PKFZ, which serves as a procurement hub for the Euro-Mediterranean and North African regions.

He also said the controversial PKFZ project received a morale boost when it was give accreditation from the London Metal Exchange four months ago.

[nazrey]

PKFZ land price 67pc more than valued:PAC
Published: 2009/11/04

THE Public Accounts Committee (PAC) today reported that the cost of per sq ft of land for the Port Klang Free Zone (PKFZ) project was RM41.76, which was 67 per cent higher than the RM25 fixed by the Valuation and Property Services Department (JPPH).

The report said that if the land had been acquired in accordance to the Land Acquisition Act 1960, the government would have had to spend only RM442.13 million and saved RM645.87 million.

Besides that, the imposition of a 7.5 per cent annual interest rate on delayed payment for the land, before the signing of a sale and purchase agreement by the general manager of Port Klang Authority (PKA) Datin Paduka O.C Phang, had also resulted in a double charge for the government.

This is because when JPPH had fixed the land price at RM25 per sq ft, it had taken into account an interest payment of 7.5 per cent for the delayed payment for up to 15 years.

PAC also found that approval was not received from the government on the interest rate charge.

"This interest rate charge caused PKA to pay a land purchase cost of RM1.088 billion besides additional interest of RM730 million, bringing the total payment to RM1.818 billion," the report said.

Phang and the Secretary General of the Ministry of Transport had failed to heed instructions from the government and the Finance Ministry in acquiring the land for the PKFZ project, it further said.

Apart from that, a directive from the Treasury Secretary General, that the land for the project is acquired by way of the Land Acquisition Act 1960 and financed through allocation for the Transport Ministry and leased back to PKA later on, was also not followed.

PAC also found that Phang's action to sign a sale and purchase agreement including the development of an infrastructure worth RM1.088 billion was against the government's financial regulations as she had not received the approval from the Finance Ministry.

Phang's action was also not in line with the Port Authorities Act 1963 requirement for her to get prior approval from PKA.

It was also imperative for PKA to ensure that the developer of the project, Kuala Dimensi Sendirian Bhd (KDSB) had carried out all the infrastructure works as determined in the sale and purchase agreement before settling the land payments which will end in 2017.

The committee also found that the appointment of KDSB as the developer by PKA was not done in a proper manner as the Transport Ministry Secretary General and General Manager of PKA had failed to follow the instruction of the Finance Ministry on the matter.

KDSB was appointed as the project contractor by PKA via direct negotiations.

In June 2001, the Finance Ministry had ordered that the contract for the project's building works is given out through open tender and the cost of developing the project financed through the issuance of government guaranteed long term bonds.

The sale and purchase agreement signed by KDSB and PKA in November 2002 also had the condition that KDSB is appointed as the development contractor for PKFZ although approval from the Finance Ministry had not been obtained for exemption from the tender process.

According to the report, approval from the Finance Ministry would have been required to carry out due diligence to ascertain the financial capability and expertise of KDSB to carry out a project involving such a huge sum.

"The failure by Transport Ministry Secretary General and PKA General Manager to follow the instruction of the Finance Ministry and seek approval from the government on the appointment of KDSB as the project developer is an offence and legal action needs to be taken against them," the report said.- BERNAMA

[nazrey]

Port Klang Free Zone (PKFZ)
From www.pka.gov.my/

Originally Posted by nazrey

Port Klang Free Zone (PKFZ)
Taken from http://www.pkfz.com/

Port Klang Free Zone (PKFZ)

[nazrey]

Westports' Gnanalingam Receives Lifetime Achievement Award
November 22, 2009 23:08 PM

KUALA LUMPUR, Nov 20 (Bernama) -- Westports Malaysia Executive Chairman Tan Sri G. Gnanalingam has received the Lifetime Achievement Award presented by the Malay Chamber of Commerce.

He received the award from Second Finance Minister Datuk Ahmad Husni Mohamed Hanadzlah, at the inaugural Malaysia Business Leadership Awards 2009, organized by the Chamber in Kuala Lumpur on Sunday 15th November 2009.

Present were prominent business and industry captains.

The award is a mark of honour and recognition toward the achievements acquired by Gnanalingam for his exemplary leadership skills in driving excellence within the port and logistics industry and for his perseverance to withstand the global economic turmoil.

According to the Chamber, "When one thinks of world class shipping and transport, with an eye for competitiveness and National pride, one name stands up above all. Tan Sri Gnanalingam has spent his life taking small things and making them very, very big."

The Chamber, in its description of Gnanalingam, pointed out that Westports today stands among the top 5 terminals in the world. "And yet, Gnanalingam has never resorted to outside labour markets for manpower.

Westports is operated by a fully Malaysian staff, 3,500 strong, with 72 per cent of them being bumiputras.

A strong patriotism runs through all members of the Westports team. This may explain why Westports is not only a leading port in South East Asia, but also regarded as one of the world's most productive ports," it said.

Of his award, Gnanalingam said, "This testifies to our belief at Westports that when we work together, we can achieve anything.

This award is due to the 3,500 staff, who are the backbone of Westports.

They inspire me, and collectively we work towards our dream of growing Westports into a top ten port in the world.

"It gives me great pleasure to know that efforts to change the face of the maritime and logistics industry are also appreciated and deemed important by reputable business organizations like the Malay Chamber of Commerce," he said.

Gnanalingam has always held a reputation for never being satisfied with the status quo or 'maintaining current standards'. He has always worked to find new and innovative methods, no matter what is required to get it done. It is this ingenuity and inventiveness that had always driven Westports and continues to drive it today.

Since 1994, Gnanalingam has been responsible for infusing a new dynamism into the port business, revolutionising the port industry with his innovative concepts like fast port, garden port and flexi port.

Westports today is a billion-dollar company, which handled nearly five million 20ft equivalent units last year.

Westports has huge influence on the development of the port industry in the region, establishing itself as one of the best ports and a benchmark for others to follow.

-- Bernama

[nazrey]

The Port Klang Free Zone Complex at Westport
Pulau Indah, Selangor
http://www.westportsmalaysia.com/
West Port is one of three ports in Selangor that comprises Port Klang, Malaysia. The other two are Northport and Southpoint. Located on Pulau Indah in Klang, it was opened in 1995. It is the nation's leading private seaport.[citation needed] In H1 2008, it'd handled 2.45 million TEUs with a market share of 62% in Port Klang. It expected to reach 5 million TEUs by end of 2008.

Leased Office Buildings (LOBs)



- 512 units light industrial warehouses
- Exhibition Centre
- Office Blocks
- Main Entrance



- Leased Office Buildings (LOBs)



- Main Office & Business Hotel



- Exhibition Centre



Taken from http://www.pkfz.com/

[nazrey]

Westports staff show their mettle as mega containership makes maiden call
Published: 2009/11/30



One of the world's largest containership, the 13,300-TEU CMA CGM Christophe Colomb, made its maiden call at Westports on November 22.

The vessel represents the biggest to arrive at Port Klang to date.

Although it was an ad hoc call, Westports Malaysia Sdn Bhd said its operations staff were fully prepared to meet the challenge, recording a gross crane productivity of 37 moves per hour.

"The arrival of Christophe Colomb proves the CMA CGM group's confidence in the ability of Westports to handle mega-sized vessels. Our skillful workforce and state-of-the-art port facilities can handle the growing sizes of container vessels which are likely to make more calls at our port next year onwards," Westports executive director Ruben Emir Gnanalingam said in a statement yesterday.

"Christophe Colomb also proves CMA CGM's ability to move forward in the current economic context.

"This new giant is a strategic asset for the group (CMA CGM), while volume and freight rates on the Asia to Europe market are recovering. This modern vessel enables CMA CGM to meet its growing customer demand on this key market while ensuring economics of scale," Ruben added.

The 365.5-metre long, 51.2-metre wide eco-friendly vessel is fully equipped with the latest technology, designed to optimise hydrodynamics and maximise propulsion. Use of an electronically controlled engine meanwhile helps reduce oil consumption by 25 per cent, resulting in a 2 to 4 per cent cut in greenhouse gas emissions.

In addition, Christophe Colomb is equipped with a fast oil recovery system, which enables bunkers to be rapidly recovered at any time, hence significantly limiting the environmental consequences should there be an incident at sea.

The Christophe Colomb is part of the FAL 7, a European service operated jointly by CMA CGM and Maersk.

[nazrey]

Asian AIM, BWT plan US$10m gold refinery in PKFZ
Published: 2009/12/30

PRIVATE funds Asian AIM Incubator Co Ltd (AAIC) and BWT Investments Ltd plan to set up a US$10 million (RM34.4 million) gold refinery in Malaysia's Port Klang Free Zone (PKFZ).

"Malaysia is the ideal location for our first factory as it has liberal gold trading laws and investor-friendly fiscal framework.

"We're currently negotiating the rental agreement with Port Klang Authority. Contrary to what is said about the implementation of the PKFZ, we find the new facility offering an ideal setting for our refinery," AAIC group managing director Patrick Harvey told Business Times in a telephone interview yesterday.

Security will be crucial for the business and the refinery will need 24-hour surveillance. The investors will also need close cooperation from the customs and police.

AAIC's refinery may source for gold mined in Malaysia.

"But the bulk of our business is to bring in raw gold from other countries, have it refined here and then exported," he said.

In the next five years, AAIC plans more factories in the Middle East, Central Asia, Africa and South America.

Kuala Lumpur-based AAIC's main business is to arrange initial public offerings and capital-raising at the stock exchanges of London, New York, Frankfurt, and Hong Kong.

Through associate companies, AAIC also engages in commodity trading with deals in oil and gas, precious metals, industrial metals, and soft commodities.

BWT Group, which is based in South Africa, has an annual turnover of US$16 billion (RM55 billion), according to its website. It has investments in fishing, industrial, start-up ventures and the trading of precious stones and metals.

[nazrey]

Port Klang container, cargo throughput down
By Kang Siew Li Published: 2010/01/1

Container traffic through Port Klang, the country's busiest container port, fell by 8.3 per cent last year, as the global economic downturn continues to hurt the country's exports.

The port handled 7.3 million TEUs (20-foot equivalent units), the standard measurement for shipping containers, compared with 7.9 million TEUs in 2008.

In terms of tonnage handled, traffic through the port was 133.8 million tonnes, down 8.8 per cent over the previous year.

More than half, or 61 per cent of the container volume, was from Westports, which generated 4.451 million TEUs. Northport accounted for the remaining 39 per cent or 2.858 million TEUs.

Transhipment cargo took the largest share of Port Klang's total throughput, contributing 58 per cent, with local boxes constituting the remaining 42 per cent .

However, transhipment volume also saw a 9 per cent drop to 4.3 million TEUs for the 12 months.

Port Klang Authority (PKA) general manager Kee Lian Yong said the decline in container and cargo throughput is in line with the global trend.

"(Nevertheless,) the port's container volume was better than our earlier forecast of a 10 per cent drop. Overall Port Klang also fared better than other major ports in the world, which saw a 10-15 per cent drop in traffic," he told Business Times.

Kee said Port Klang is expected to post throughput growth in 2010, returning to 2008 volume of 8 million TEUs.

"We remain cautiously optimistic as the shipping community is predicting that 2010 will still be a tough year," he added.

According to Drewry Shipping Consultants Ltd's most recent projections, the market will have to wait until 2012 before global container port volume exceeds 2008 levels again. It expects Far East and Southeast Asian container traffic to recover faster than that in other regions.

"In 2010, the market should brace for another tough year," Shipping Association of Malaysia chairman Ooi Lean Hin had said in an earlier interview .

[nazrey]

PKFZ 'very much alive', cargo volume set to surge
By Kang Siew Li Published: 2010/01/21



THE Port Klang Free Trade Zone (PKFZ) in Pulau Indah, Selangor, is "very much alive", although it is still embroiled in controversy and lawsuits over its ballooning cost overruns, says its head.

Last year, the free zone saw its container traffic rise almost five times to 43,032 TEUs (20-foot equivalent units) from 9,112 TEUs in 2008.

In terms of tonnage, the volume of goods generated from trading, manufacturing and logistics activities grew by 223 per cent to 1.3 million tonnes last year, from 397,110 tonnes a year ago.

Port Klang Free Zone Sdn Bhd (PKFZSB) general manager Chia Kon Leong attributed the growth to increased economic and logistics activities culminating from new investments and growth of existing businesses in PKFZ. PKFZSB operates and markets the 405ha facility.

"With the commencement of operations of new manufacturing facilities in the free zone and the expansion of trading and logistics activities, cargo volume is projected to increase by more than 100 per cent this year," he told Business Times in an interview.

As at end-December 2009, PKFZSB has attracted 56 companies into the zone with total proposed investments of RM936.1 million.

Chia believes that this will be faster once the new business model for PKFZ has been completed.

A super task force led by the Chief Secretary to the Government, Tan Sri Mohd Sidek Hassan, was set up in October last year to restore the loss-making PKFZ project and identify measures for its development. It is expected to announce a business turnaround plan and a new business model for the free zone in March this year.

"It's business as usual. The free zone is very much alive. (In fact,) we are positioning ourselves as a distribution hub for containers and the London Metal Exchange (LME)," said Chia.

This follows LME's approval of Port Klang as a good delivery point for primary aluminium, aluminium alloy, zinc, copper, lead and nickel in June last year.

As at December 30 2009, 14 companies have taken up 98.5 acres (38.89ha), representing 16 per cent of the 640 acres (259.2ha) of open land in the zone.

"We don't foresee any problems getting the remaining 541.5 acres (219.31ha) developed within the next three to five years. It could go even faster, depending on the outcome of the new business model," he added.

Chia also expects LME metals and cotton distribution activities in PKFZ to increase the occupancy of its 512 pre-built light industrial units to 50 per cent by the end of this year, from 32 per cent now.

Meanwhile, the opening of the 135-room business hotel and 100,000 sq ft exhibition centre in the zone has been delayed until the second half of this year. It was originally slated to open by June 2008.

"Much still depends on the demand (for such facilities)," said Chia.