Malaysia - Port & Shipping News

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Setting a new course for Penang Port
By Marina Emmanuel
Published: 2009/06/27



PENANG Port Commission (PPC) is drafting the terms and references for a new 20-year blueprint, which is set to chart the development of the Penang Port and its related services from 2010.

PPC chairman Tan Cheng Liang said the current 20-year masterplan will end next year and the new plan will take into cognisance many factors, which include the emergence of new economies like India and China.

"Apart from contributing to Penang's growth, the masterplan will take into account the global financial crisis and our future competitors in the region," she told reporters at her office in George Town, Penang, yesterday.

The PPC was established in 1956 under the Penang Port Commission Act, 1955. The commission serves as a statutory body under the purview of the Ministry of Transport.

Tan said the Penang Port Consultative Council, which comprises relevant government agencies, chambers of commerce in the northern states and representatives of logistics associations in Penang, has been giving its input in developing the new blueprint.

"We will then open it up for tender, after which we hope to have consultants draw up the masterplan over six months," she added.

Tan said the proposed blueprint will incorporate a holistic water public transportation system for Penang.

Elaborating on a proposal for a water taxi service which the PPC had submitted to Transport Minister Datuk Seri Ong Tee Keat, Tan said the ministry and PPC will engage the Northern Corridor Implementation Authority (NCIA) on this project.

Two other proposals from the PPC were for PPC to take over the running of the iconic Penang ferry services and a combination of PPC not only taking over the ferry operations but to also run a water taxi service.

Business Times has learnt that the NCIA will deliberate on the PPC's proposal for the water taxi system next month at its council meeting.

Sources said the authority is likely to carry out a feasibility study on the proposed water taxi service, which will see the construction of jetties and terminals dotting the island.

While the NCIA is expected to fund the infrastructure supporting the water taxi services, it is learnt that the rest of the scheme will be carried out via private finance initiative and will take off before the end of the Ninth Malaysia Plan.

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Penang Port Commission submits 3 proposals
By Presenna Nambiar
Published: 2009/06/26

THE Ministry of Transport received three proposals from the Penang Port Commission (PPC) yesterday, one of which includes details of a turnaround plan for Penang Port.

PPC has also given a proposal to have water taxies in Penang to complement current ferry operations and for the ferry operations to be handed over to the regulator to operate.

Transport Minister Datuk Seri Ong Tee Keat told reporters that he would go through the proposals in detail to study the viability of the proposals. This will include discussions with Penang Port Sdn Bhd (PPSB).

The ferry operations are currently handled by PPSB, a subsidiary of Ministry of Finance. PPSB also operates Penang Port.
In 1994, PPSB signed a 30-year concession agreement with PPC to operate the ferry service and Penang Port.

"I will do the needful and we are going to work with the Northern Corridor Implementation Authority to make it work. Hopefully it can be concluded by the next quarter," he said.

There have been previous proposals to turnaround Penang Port, including Konsortium Logistik's bid to take it private. However, Ong indicated that he is only considering the PPC suggestions at the moment.

The Penang state government and Syarikat Prasarana Negara Bhd, meanwhile, were reportedly also interested to take over the state's ferry operations.

PPSB reportedly lost some RM22 million in operating the ferries in Penang in 2008.

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Tabling of PKFZ report in Parliament in Oct
Published: 2009/07/01

A full report on the Port Klang Free Zone (PKFZ) scandal is expected to be ready in three months and will tabled in Parliament at its sitting in October, said Public Accounts Committee (PAC) chairman Datuk Seri Azmi Khalid.

"The investigation into the matter is expected to be completed before Parliament''s next sitting. We still have three months (to complete the probe) and do not want to take too long to finish it.

"We will then table the report in Parliament along with our recommendations," he told reporters at Parliament's lobby today.

PKFZ, a transhipment hub built on a 405-hectare site in Port Klang which also housed warehouses, office blocks and a four-star hotel, became a subject of conrovery after it was exposed that the development cost for it ballooned from RM2.5 billion to RM4.6 billion.

Azmi also said the PAC would be interviewing several people on the matter and they included Attorney-General Tan Sri Abdul Gani Patail and former Transport Ministers Tun Dr Lim Liong Sik and Datuk Seri Chan Kong Choy.

"Others include those named in the Price Waterhouse Coopers (PwC) audit on PKFZ and in the Auditor-General's report on the project," he said, adding that they were being called not because they were necessarily guilty of anything but to throw light on the controversy.

Asked if the PAC meeting today had propsoed for the AG to give testimony, Azmi said Abdul Gani would be called when the committee needed his input.

"He (AG) need not give any statement (for now). If we feel we need an explanation, we will invite him (Abdul Gani)," Azmi said. - Bernama

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K. Dimensi takes legal action to clear name
Published: 2009/07/01

KUALA Dimensi Sdn Bhd (KDSB), a subsidiary of Wijaya Baru Global Bhd (WBGB), is taking legal action to clear its name and defend its rights in the Port Klang Free Zone (PKFZ) issue.

"We filed the suit today against Port Klang Authority (PKA) and PricewaterhouseCoopers Advisory Services Sdn Bhd (PwCAS)," said WBGB group deputy chief executive officer and executive director Datuk Faizal Abdullah.

Speaking at a press conference, Faizal said the lawsuit was over the controversial report by PricewaterhouseCoopers (PwC) in relation to the PKFZ issue.

"In essence, it is a libel action for the publication of the report by PKA with the consent of PwCAS to the world at large," he said.

In the suit, KDSB claimed that the report contained various allegations which are highly damaging to its reputation and trade.

KDSB's solicitors would serve the papers on PKA and PwCAS in due course, Faizal said.

"This is, however, just one in a series of legal suits contemplated by KDSB with regard to the publication of the report," he said.

Among the reasons that prompted KDSB to take legal action include the statement by the PKA chairman Datuk Lee Hwa Beng,that payment due to KDSB would not be paid and that the organisation was ready to face litigation, Faizal added.

"We will sue not only to protect our rights but also the interests of investors or bondholders who have put their faith in the project," he said.

According to Faizal, he had written to the PKA chairman, stating that the proceeds of the payments due were not going into the coffers of KDSB but to pay the bondholders. - Bernama

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PKFZ developer sues port and audit firm over report
By Kang Siew Li
Published: 2009/07/02

Kuala Dimensi, the turnkey developer of the controversial Port Klang Free Zone (PKFZ), has filed a libel suit against its owner, Port Klang Authority (PKA), and PricewaterhouseCoopers Advisory Services (PwC) over the latter's report on the project.

"This is just one of the series of legal suits contemplated by Kuala Dimensi with regard to the publication of the PwC report," Kuala Dimensi group deputy chief executive officer Datuk Faizal Abdullah said here yesterday.

In May last year, PKA had commissioned PwC to conduct an independent analysis of the PKFZ project at the request of Transport Minister Datuk Seri Ong Tee Keat.

The report, which was released exactly a year later, has questioned Kuala Dimensi's role in selling the 405ha piece of land PKFZ now sits on and developing it.

CheangAriff, the law firm representing Kuala Dimensi, filed a suit at the High Court here yesterday over the PwC report, which Faizal said contained allegations that damaged its reputation and trade.

"Our lawyers will serve the papers on PKA and PwC in due course."

He said the allegations made in the report carried the meaning or insinuation, among others, that Kuala Dimensi had grossly overcharged PKA for interest in relation to the purchase of the land, that it had or was likely to have received payments in excess of the true value of the works done by it as the turnkey developer, that it had overpriced the value of its works and that it was unscrupulous.

"(Other allegations include) that Kuala Dimensi had overcharged the development of the project, that it entered into the agreements with PKA in connection with the development of the project with knowledge that the agreements were not lawfully or prudently executed and that it colluded with Datuk Abdul Rahman Palil and/or Datuk Chor Chee Heung while they were in a position of a conflict of interest to secure advantages and benefits for themselves that would otherwise not have been available to it."

Kuala Dimensi has expressed its intentions to sue PKA, its chairman Datuk Lee Hwa Beng, PwC, the transport minister and newspapers since the release of the PwC report.

Impetus for this came with Tuesday's announcement by Lee that the authority would withhold RM660 million in payments due to Kuala Dimensi for the PKFZ project pending a review by the special task force commissioned to take another look at the project.

Faizal said: "The chairman of PKA had said payments due to Kuala Dimensi will not be paid and that PKA was ready to face litigation.

"He is inviting litigation by pushing our backs against the wall.

"Litigation is generally unproductive, but he leaves us with no choice. We will exercise our constitutional right by going to court."

He also said he had written a letter to Lee on June 29 explaining that the proceeds of the payments due would not go into the coffers of Kuala Dimensi, but to a special purpose vehicle to pay the bondholders.

"Guess what was his reply? It is shocking that in his reply on June 30, he said he was unaware of the bond issue and asked whether Kuala Dimensi was getting the money.

"Isn't that strange when the PwC report had mentioned about this bond financing?

"Additionally, it has come to our knowledge that in early June, the chairman of PKA had a meeting with the representatives of bondholders where he suggested a 20 per cent discount for early settlement/redemption of the bonds," said Faizal.

He also questioned the legality of Lee's appointment as chairman of PKA.

"Section 4 of the Port Authorities Act 1963 states that the authority shall consist of a chairman who shall be appointed by the Yang di-Pertuan Agong.

"However, we understand that his appointment has not been consented to by the Yang di-Pertuan Agong until today.

"Indeed, it was the transport minister who had extended the service of Lee as PKA chairman (for another term after his term of office expired on March 31).

"So my next question: is the transport minister abusing his power?"

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PKA to release payment to K. Dimensi
Published: 2009/07/06

THE Port Klang Authority (PKA) has decided to release the payment of RM660 million due to Kuala Dimensi Sdn Bhd, the Port Klang Free Zone project turnkey contractor, thus reversing its earlier decision.

In a statement in Kuala Lumpur today, its chairman Datuk Lee Hwa Beng said decision was made after the PKA board which met this morning took into consideration the appeal from the trustees for the bondholders and the stand of the Ministry of Finance.

He said the trustees for the bondholders in an appeal letter dated July 3, apart from describing the background of the issuance of private debt securities, also spelt out the consequences of non-payment and the possibility of the trustees acting upon the directions of the bondholders and commercial papers/medium term notes holders to enforce the security charged.

PKA also received instructions from the Treasury that the PKA board be mindful of the implications that might affect the confidence of investors, local or foreign, in the Malaysian private debt securities market, he said.

Lee said the payment for amount due on June 30 is made on a "without prejudice and with reservation of rights" basis and without admission of liability, and it will also not waver from its earlier commitment to seek legal remedies and take other appropriate actions to determine its true liabilities and rights.

Recently, PKA decided to defer the RM660 million payment to Kuala Dimensi pending the completion of investigation by the special task force.

The payment in four parts from June to July to Kuala Dimensi are supposed to go to the four special purpose vehicles -- Special Port Vehicle Bhd, Transhipment Megahub Bhd, Valid Ventures Bhd and Free Zone Capital Bhd -- that were created to issue bonds to finance the project. - Bernama

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Liberal policy to benefit Sabah, Sarawak ports
By Presenna Nambiar
Published: 2009/07/10

THE recent partial liberalisation of the national cabotage shipping policy is expected to give ports in Sabah and Sarawak the advantage it needs to play leading roles in the BIMP-EAGA region, says Transport Minister Datuk Seri Ong Tee Keat.

Under a relaxation of the cabotage policy, foreign vessels are now allowed to carry containerised transhipment cargo between Port Klang and Port of Tanjung Pelepas in Peninsular Malaysia and Sepangar in Sabah and Kuching and Bintulu in Sarawak.

Currently, 20 per cent of all cargo received by ports in Sabah and Sarawak are transshipment.

"We have not made any drastic changes to the policy, but rather we will keep to the gradual relaxing of rules since 1994," Ong told a press conference yesterday, in an effort to dispel "misconceptions" associated with the cabotage policy and the reason behind its partial liberalisation.

He said the move was not a result of the review called for by the National Logistics Council last year, but was an initiative by his ministry to address the woes of the Sabah and Sarawak people. That is because the review never materialised, as talks between local shipowners and shippers hit a deadlock.

"The high price of goods cannot be blamed on the cabotage policy alone. Shipping costs are only a part of the logistic supply chain, there are also other costs involved that contribute to this. Imbalance of trade is also an issue," Ong said.

He said the intention behind the latest move was good, providing ports in Sabah and Sarawak the opportunity to attract foreign shipping lines to call there.

However, there remains a need for ports in Sabah and Sarawak to improve their port facilities and productivity in order to strengthen their position.

Ong said the cabotage policy, which was initially enacted to encourage the growth of the local shipping industry, has helped to do that.

Last year, Malaysian registered ships rose to 2,321, while there were 2,251 foreign registered ships.

"The cabotage policy is not unique to Malaysia. In fact, if you were to compare our cabotage policy with other places in the world we (shipping industry) are relatively liberal," Ong said.

The US, for example, insists that ships carrying cargo between local ports not only be registered in the US, but also only use vessels built in the US.

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Britain's Dragon LNG terminal to get first cargo on Tuesday
Published: 2009/07/11

LONDON: The first liquefied natural gas (LNG) cargo for Britain's new Dragon LNG import terminal is expected to arrive on July 14, according to the local port authority website yesterday.

BG Group's Methane Lydon Volney, which can carry 145,127 cubic metres of the super-cooled gas, was off the coast of Portugal yesterday, according to AISLive ship tracking data on Reuters.

Dragon LNG is a joint venture in which BG holds a 50 per cent stake, Malaysia's Petroliam Nasional Bhd (Petronas) 30 per cent and the Netherland's 4Gas 20 per cent.

The terminal has a storage capacity of 320,000 cubic metres and can pump up to 1.2 million cubic metres of gas a day into the UK gas network. - Reuters

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Bintulu Port, Sarawak
by richardsinyem

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Sepangar Port, Sabah (NEW)
by richardsinyem
Sepanggar Port Main Gate





Sepanggar Port Equipment Fleet





Harbour Crane





Container Yard





Main Port Operation Building

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Sepangar Port, Sabah (NEW)

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Volume growth for Sabah port
Monday February 2, 2009
Stories by SHARIDAN M. ALI



Datuk Abu Bakar Abas

SAPANGAR Bay Container Port (SBCP), the flagship container terminal in Sabah, is optimistic of recording volume growth this year despite the global economic scenario.

Last year, SBCP, which is managed by Suria Capital Holdings Bhd subsidiary Sabah Ports Sdn Bhd, posted an 84% container volume growth to 193,854 20ft equivalent units (TEUs).

Besides SBCP, Sabah Ports also manages seven other ports in the state.

Suria Capital group managing director Datuk Abu Bakar Abas told StarBiz that in view of the current economic crisis, SBCP’s throughput performance this year would be relatively dependent on the economic situation of Malaysia’s trading partners.

“But we are optimistic that SBCP will not experience a decrease in container volume. This is because we are confident that our economy will be kept healthy by the Government’s economic stimulus package and 4.5% growth outlook for the state’s economy,” he said.

Furthermore, Abu Bakar said, the positive volume growth outlook was also supported by the domestic hubbing services (DHS) initiative to be launched by Sabah Ports by the next quarter.

The domestic hubbing is to streamline Sabah’s Ports container shipment by designating SBCP as a hub port for containers from the feeder ports in Sandakan, Tawau and Lahad Datu.

Streamlining the port’s container shipment to a single loading centre or hub port will create a consolidated critical mass at one particular port.

“Through the DHS initiative, efficiency in container handling will improve as the four out of eight ports that were involved in container handling will implement effective yard and operation management.

According to Abu Bakar, Sabah Ports will also introduce new and convenient services such as priority berthing and reduced port charges to offer an overall low-cost solution and spur the growth of transshipment activities.

“The volume build-up is expected to encourage transshipment activities at SBCP, thus inducing main-line operators (shipping companies) to conduct direct callings from SBCP to foreign ports.

“This will widen our transshipment activities beyond the current domestic ports. This move will shorten container transit time, reduce the shipping cost from and to Sabah and pave the way for SBCP to position itself in regional hub activities, particularly the Brunei, Indonesia, Malaysia, the Philippines-East Asean Growth Area (BIMP-EAGA) market,” he said.

On bulk cargo operations, Abu Bakar said Sabah Ports expected it to be healthier this year due to the rosy outlook for crude palm oil (CPO).

Bulk cargo is a major contributor to the remaining four terminals of Sabah Ports located in Sandakan, Tawau, Lahad Datu and Kunak.

Other than CPO, the main bulk cargoes handled at the port are petroleum, palm oil products, fertilisers and palm kernel expeller.

“The bulk cargo operations will definitely help in keeping the four ports afloat as Sabah is one of the largest CPO exporters in the country with a vast palm oil acreage,” Abu Bakar said.

“Exports of CPO are expected to remain strong while petroleum imports will continue at a reasonable growth rate.

“Other types of cargoes are expected to experience a slight downtrend, especially fertiliser imports, due to the slower pace of palm oil production.

“Nevertheless, the market demand for palm oil is still positive despite instability in pricing,” he said.

Abu Bakar noted that bulk cargo accounted for 56% of total cargo volume handled at all the ports in Sabah.

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Butterworth container terminal sees better quarter
Monday July 6, 2009
By DAVID TAN

BUTTERWORTH: North Butterworth Container Terminal (NBCT) registered about 12% increase in the volume of cargo it handled in the second quarter, compared with the first quarter this year, Penang Port Sdn Bhd general manager Obaid Mansor said.

But for the whole of 2009, NBCT was expected to post a slight drop of about 5.5% in cargo volume from last year’s 929,000 TEUs (20ft equivalent unit), he said.

The volume handled in the second quarter was 223,372 TEUs, compared with 199,391 TEUs in the first quarter.

Despite the quarter-on-quarter increase in the second quarter, there was a 10% decrease in the cargo handled at NBCT to 422,763 TEUs in the first half this year against a year earlier, according to Obaid.

“The increase in cargo activity in the second quarter was due to outgoing and incoming cargo such as electrical products, furniture, palm-oil based products, high-technology glass used for the solar industry, and rubberwood.

“We expect more raw materials to be imported from United States and Germany in the third and fourth quarters to support the solar industry in the northern region.

“The third and fourth quarters should see a 10% increase in the volume of cargo handled,” he said.

The pick-up in cargo volumes at NBCT was a genuine indication that the Asean region was recovering as the port in Penang was not used for transhipment of goods, Obaid said.

“The cargo handled here is not on transit to other parts of the world. It is imported and exported to meet the economic needs and activities in the northern region and neighbouring countries,” he said.

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Major shipping firm keen on investing, says Ong
Monday June 29, 2009

TANGKAK: The world’s third biggest shipping company is keen to invest in port-related ventures in the country, Transport Minister Datuk Seri Ong Tee Keat said.

Speaking to reporters here, Ong said he had met with CMA Maritime in France recently and talked about investing in the shipping industry.

However, he said the recent issues relating to the Port Klang Free Zone (PKFZ) raised by DAP leader Lim Kit Siang could discourage foreign investors from setting up related ventures in Port Klang.

Lim had already read the PricewaterhouseCoopers reports on the PKFZ and yet still raised issues about the project.

“He keeps asking about the three-year-old question to which he already knew the answer,” Ong said after opening the Ledang MCA division’s annual general meeting yesterday.

Ong said Prime Minister Datuk Seri Najib Tun Razak had announced on Saturday more liberalisation policies in many sectors and as a minister he supported the move.

He said he hoped the new liberalisation policies would attract more foreign investors to set up business ventures in the country.

He said he recently met with China’s Prime Minister Wen Jiabao who pledged to import more palm oil from Malaysia and also provide soft loan facilities.

He said these developments were the result of MCA’s economic agenda planned last year and wanted all party members to know the latest progress of the agenda.

“I informed the Ledang MCA leaders about the progress as I want the grassroots to know about the results of the party’s economic agenda,” he added.

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

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Originally Posted by nazrey

Pekan to have O&G, maritime hub by 2012
17-02-2009: by Chua Sue-Ann

KUALA LUMPUR: Tanjung Agas Supply Base and Marine Services Sdn Bhd (TASBMS) is set to develop a 4,098-acre oil and gas (O&G) and maritime industrial park in Pekan, Pahang, which is expected to attract at least RM6 billion in investments.

Construction work on the Tanjong Agas Oil and Gas and Maritime Industrial Park would commence by May with completion targeted for 2012, TASBMS managing director Mohd Faidzal Ahmad Mahidin said after the launch of the park here yesterday.

Faidzal said that while the O&G facilities would take three to four years to complete, he expected the residential and commercial projects to be developed sooner.

The development also includes shipyards, fabrication yards, liquefied natural gas (LNG) and petroleum terminals, dredger yards, liquid bulk terminals and dockyards.

Faidzal said the RM2 billion needed to develop infrastructure for the industrial park would be funded mainly via bank borrowings, adding that TASBMS, a special-purpose vehicle, hoped to receive some aid from the federal government.

Between 1,600 and 2,000 acres of the state-owned land within the industrial park had already been taken up by investors, who would begin constructing their facilities simultaneously with the industrial park, subject to licensing approvals, Faidzal said.

Seven companies signed agreements with TASBMS at yesterday’s launch. They include Tec-Steel Manufacturing Sdn Bhd, Vantech Dockyard (M) Sdn Bhd, Bitari Abadi Sdn Bhd and USA Tech Marine (M) Sdn Bhd.

Faidzal said the seven companies were expected to channel at least RM6 billion worth of investments, of which half would be foreign direct investment (FDI), while TASBMS was in talks with another 10 potential investors.

Faidzal said TASBMS was seeking government approval for an independent power plant (IPP) to be located within the park to supply about 250MW of energy, as Tenaga Nasional Bhd would be unable to provide the park’s energy needs within two years.

Asked about the viability of an oil and gas hub amidst a global economic slump, Faidzal said the crisis provided an opportunity for the company in terms of development cost, adding that when the economy recovers, oil and gas players would be set to gain.

The Pahang Development Corporation (PKNP) has a 30% stake in TASBMS, which is the concession and project company incorporated primarily to develop the industrial park.

The project was launched by the Sultan of Pahang, Sultan Ahmad Shah Al-Musta’in, and witnessed by Pahang Regent Tengku Abdullah Al-haj and Deputy Prime Minister Datuk Seri Najib Razak.

TASBMS chairman Tengku Abdul Rahman Sultan Ahmad Shah said the company was in preliminary discussions for Petronas and its production-sharing contract partners, vendors and suppliers to take up residence at the industrial park.

“The location of the industrial park is most ideal as it faces the South China Sea and is in the midst of growth areas of upstream and downstream oil and gas exploration and production activities,” Tengku Abdul Rahman said.

Speaking at the event, Najib said the industrial park was consistent with the government’s policies and efforts, adding that its strategic location in the east coast would strengthen the viability of the development and spearhead more economic benefits for the region.

“As this maritime park matures and is fully occupied by the target industries and companies, the entire area will be rendering a critical service to the oil and gas and petrochemical industry,” he said.

Najib also said the bulk of basic infrastructure for the development project would be undertaken by the government through the East Coast Economic Region Development Corporation (ECERDC).

Source; http://arifjais.vox.com/library/phot...03c0d860b.html



Tanjong Agas Oil & Gas And Maritime Industrial Park

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Originally Posted by nazrey

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

Ling Testifies Before PAC Over PKFZ
July 15, 2009 21:09 PM
> http://www.bernama.com/maritime/news...425647&lang=en

KUALA LUMPUR, July 15 (Bernama) -- Former Transport minister Tun Dr Ling Liong Sik today testified before the Public Accounts Committee's (PAC) to clarify matters regarding the Port Klang Free Zone (PKFZ) scandal.

PAC chairman Datuk Seri Azmi Khalid at a news conference said the former minister was called because of his involvement in the early proposal phase for the zone's development.

"He gave full cooperation and clarified all information as the former transport minister. We also got his views and asked several questions related to the zone's development.

"He tried to answer all the questions but there were some parts that he could not remember as it was 10 years ago. The proposal for the zone was made before 1999. Dr Ling was in the ministry as minister in the early stages of the PKFZ proposal. He was not a minister when the area was being developed," Azmi said after a three-hour hearing at the Parliament House here Wednesday.

When asked about the questions posed to Dr Ling, Azmi said they would only be revealed in a parliament sitting after all reports regarding the PKFZ were completed in October.

On the support letter for the zone signed by Dr Ling, he said: "According to him, the letter was issued upon the suggestion by the administration, that is, the ministry's secretary-general with the advise of the ministry's legal advisors.

"Actuall the letter did not mean a guarantee. There was no financial implications to the government," Azmi said.

To a question if Dr Ling would be called again to testify, Azmi said possibly he would not be unless there were specific questions the PAC wanted clarification on.

Dr Ling was transport minister from 1986 till 2003 before Tan Sri Chan Kong Choy took over from July 1, 2003 till March 18 the following year. Chan was then replaced by Datuk Seri Ong Tee Keat.

Azmi said among issues that were always raised by the PAC members were regarding the process of land acquisition, bonds not guaranteed by the government, as well as the development of the PKFZ in a comprehensive manner and not in stages as was customary.

"Actually a development project should be in stages or in phases. Like developers. All developers develop an ares in phases. They make one phase first to be sold or rented.

"The PKFZ, the building was done in one go and cost a lot. In the end we (the PAC) found that although it was ready, only 14 per cent could be rented and the rest could not be," he said.

Azmi said the development of the zone which cost a lot without satisfactory returns casued the Port Klang Authority to now find customers for the zone.

Among companies investing in the PKFZ are Aker Kvaerner of Norway, Score Asia, Azron Wallsystem, Veheng Auto Link (Asia), Nova Logistics, Biodiesel SP and Oriental SP.

PKFZ is a transportation hub built on 405ha in Port Klang that has godowns, office blocks and a four-star hotel but generated controvery after it was revealed that the cost for it had balloned from RM2.5 billion to RM4.6 billion.

The Port Klang Authority bought the PKFZ land of 1,000 acres in Pulau Indah from Kuala Dimensi Sdn Bhd (KDSB) in 2002 with a price of RM25 per square foot.

KDSB was then appointed to be the developer.

The issue is of public interest as the PKA got a RM4.632 billion loan at low interest rate from the Ministry of Finance for the project.

Tomorrow, Ong is expected to testify before the PAC followed by Chan next week.

Azmi said the PAC now had a list of people to call including former Transport Ministry secretary-generals and deputies, as well as former PKA chairmen and officers representing the Ministry of Finance.

-- BERNAMA

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Expected Cargo Volume Decline At Kuching Port
July 16, 2009 15:27 PM
> http://www.bernama.com/maritime/news...425796&lang=en

KUCHING, July 16 (Bernama) -- For the Kuching Port Authority (KPA), the January-June 2009 cargo volume figures point to a downtrend for the whole year, possibly lower than 2008.

However, the expected decline in overall cargo volume is not surprising due to the current global economic slowdown, according to shipping sources.

For the first half of this year, the general cargo volume was 519,120 tonnes compared to 1,356,316 tonnes for entire 2008 period and 957,750 tonnes in 2007.

Liquid bulk in the first half of 2009 amounted to 440,932 tonnes compared to 877,119 tonnes in 2008 and 893,000 tonnes in 2007.

Containerised cargo throughput registered 57,630 TEUs (twenty-foot equivalent units) during the first half of this year compared to 169,101 TEUs in 2008 and 162,899 TEUs in 2007.

Ports in Malaysia and in the region are affected by the economic downturn and the slowdown at Kuching Port is no exception, the sources said.

Meanwhile, Kuching Port's contractor for equipment-handling services recently acquired two re-conditioned quayside cranes to complement the existing two cranes in operation, according to reliable sources.

The two cranes, which will undergo the required modifications once approval has been given by the Department of Safety and Health, are to further improve cargo-handling efficiency at the port.

"It would be wrong for anyone to say the two new cranes are lying idle at the port. They will be put in place if and when there is a sudden surge in the cargo-handling volume," a source said.

-- BERNAMA

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MMEA To Have New Base Next Year
July 16, 2009 17:30 PM

KOTA KINABALU, July 16 (Bernama) -- The Malaysian Maritime Enforcement Agency (MMEA) will build a new base in Kudat, on the northern coast of Sabah, early next year, said maritime enforcement chief of the Sabah and Labuan region, Maritime First Admiral Mohd Taha Ibrahim.

He said with the new base the agency could intensify enforcement and monitoring in the area as well as other Malaysian maritime zones, adding they currently had bases in Kota Kinabalu, Sandakan, Tawau and Labuan.

"We hope to strengthen monitoring in the country's maritime zones as well as reduce encroachments," he told reporters after launching the 'Preventive Sar' briefing, here Thursday.

Regarding the agency's success in preventing encroachments into the maritime zones in Sabah, Mohd Taha said their operations had gone well and as at yesterday 80 vessels had been detained, including foreign vessels, for various offences including flouting immigration and customs laws.

"The agency will continue to step up its operations and enforcement seeing as Sabah is located close to the borders of Indonesia and the Philippines, which presents more chances of smuggling activities," he said.

-- BERNAMA

[nazrey]

Cabinet, board not aware of decisions



Port Klang Free Zone (PKFZ)

PRICEWATERHOUSECOOPERS Advisory Services Sdn Bhd (PwC) has identified several issues that warrant the attention of the board of Port Klang Authority (PKA) on the Port Klang Free Zone project (PKFZ).

The issues in PwC’s report Position Review of Port Klang Free Zone Project and Port Klang Free Zone Sdn Bhd (PKFZSB) dated Feb 3 talks about the authority to enter into agreements, financial implications of the agreements, project management and status, ability to meet financial obligations and the financial position of PKFZSB.

One of the issues highlighted comprise several development proposals which were not tabled to the Cabinet for approval despite having obtained prior Cabinet approval to purchase the land for PKFZ.