MALAYSIA | Port & Shipping News

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Labuan Port
by Roziman MDN
http://www.flickr.com/photos/25495070@N03/2401997635/



by peterko

image hosted on flickr

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Slight recovery in two major shipping routes
Monday July 20, 2009
By SHARIDAN M. ALI

PETALING JAYA: Malaysia’s shipping industry has seen a slight recovery in volumes and freight rates in trade routes from Asia to Europe and the United States as the peak season approaches in the next two months.

“There has been a slight increase in volume but it is still weak. And the current freight rates have improved by 15% to 20% from their slump in January,” Wilhelmsen Ships Service Malaysia managing director Winston Loo told StarBiz.

“The current improvement in freight rates is still considered below healthy levels but it certainly helps mitigate, to a certain extent, rising fuel costs,” he said.

Loo said most shipping lines had also implemented a rate-restoration exercise.

The exercise aims to counterbalance the books of shippers due to the high operating costs incurred after the drastic fall in volumes and ocean freight rates since the beginning of the global economic crisis.

Loo said that the end of July was a curtain raiser for the usual traditional peak shipping period in August and September due to preparations for the festive season by year’s end.

United Arab Shipping Co Malaysia Sdn Bhd country general manager Desmond Yong said the rate-restoration exercise was implemented because the previous rates charged, especially in the first quarter, were “beyond survival”.

“The rates then were about 50% less on a year-on-year basis,” he noted, adding that the current freight rates for a container from Malaysia to Europe were about US$300.

Yong said the current container shipping capacity was quite tight due to the rise in exports from China to Europe and the United States.

“Malaysia, too, is currently recording a year-on-year increase in exports to these two markets,” he said.

Trans-Asia Shipping Corp Bhd (Tasco) head of non-vessel operating common carrier, K.H. Lim, said the overall export volumes to both the United States and Europe had picked up as the July–September peak season approached.

“This is the time when major importers start buying all those back-to-school merchandise, summer holiday stuff, followed by Christmas sales goods.

“However, the current numbers are still way behind compared with a few years ago when the US economy was still unaffected,” he said.

He added that December and January were always the slowest months as most of the merchandise had already reached the retail outlets.

Usually, according to Lim, shipping lines will impose peak season surcharges from June 15 to Nov 15 but so far, none of the liners had done so.

“Nevertheless, the capacity of trade routes to Europe from Asia is quite tight now as most of the major lines have withdrawn, consolidated, merged or suspended trade that doesn’t generate enough cargo or considered non-profitable,” he said.

Asean Port Association (APA) working committee chairman Datuk Capt Abdul Rahim Abd Aziz said many, if not all, shipping lines had reported losing US$250mil to US$350mil per quarter since the global economic meltdown.

“Ships laid up as of last month were reported to be about one million 20ft equivalent units (TEUs), corresponding to 400 vessels worldwide – which is about 10% of the world’s capacity.

“The current situation is expected to stay till early part of next year,” he said in Kota Kinabalu recently.

Correspondingly, Abdul Rahim said the decline in Malaysia’s ports’ volume was between 25% and 30%.

“But I am happy to report that it has stabilised somewhat since about a few of months ago. Nevertheless, it’s too early to tell whether this stabilisation is here to stay and improve, or otherwise,” he said.

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Port @ Penang
by Xiao Niao @ SK

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Port @ Penang
by Alex DeLarge

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OSK rates Bintulu Port a 'buy'
Published: 2009/07/22
Source: http://www.btimes.com.my/Current_New...cle/index_html

BINTULU Port gets a "buy" recommendation at a target price of RM6.75 based on a discounted cash flow (DCF) approach.

The DCF is premised on a cost of equity of 8.295 per cent.

Bintulu Port is a defensive buy given its stable recurring income from Petronas LNG operations and the potential of the port playing a big role in SCORE's infrastructural expansion.

The pricing is justified based on its superior status as the country’s most efficient port and its stable cost structure, says OSK.

"Expect a dividend of 36.5 sen for financial year 2009, which suggests a yield of 6.1 per cent." - Reuters

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The Sibu shipbuilding industry
Sibu, Sarawak

Originally Posted by slby

The Sibu shipbuilding industry: (courtesy of nelxx on flickr.com)

















The business is worldwide where orders come from all over the world. Ships you and me take to go to Langkawi and Pangkor etc also many made by Sibu.

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Rising demand helps to shield shipbuilding industry: MSET
By Zainuddin Muhammad Published: 2009/07/24



Shipbuilder MSET Shipbuilding Corp Sdn Bhd said the domestic shipbuilding industry has been largely shielded from the global economic crisis, thanks to the rising demand for support vessels and work boats to support the offshore oil and gas industry, says its top executive.

"The shipbuilding business seems to be able to withstand the test of the global economic slowdown up until now, mainly through the support from those in the oil and gas industry," its chairman Hasnan Abdullah said at the handing-over ceremony of MV Borcos Tasneem 6, a 60m, 60 tonne Bollard Pull Offshore Support Vessel to Borcos Shipping Sdn Bhd in Kuala Terengganu yesterday.

He said business could not be better for the leading shipbuilding company in the east coast.

MSET expects to deliver two 60m vessels worth nearly RM100 million this year, and will start work on another five vessels measuring 45m at its shipyard in Pulau Duyong, Terengganu.

Hasnan said with only four building and repairing docks available at the shipyard, the company will not be able to build vessels larger than 60m at the moment.

"We have a total area of 8ha, but we are located at four different areas of Kuala Terengganu namely in Pulau Duyong, Pulau Kambing and Gong Badak.

"But as soon as our new 14ha dock is ready, we will be in a position to handle the construction of vessels above 110m and 1,000 tonnes such as tug boats, anchor handling tugs, survey vessels, coastal product tankers and bunker barges," he said.

With a larger dock, MSET will also be able to improve its maintenance and repair facilities, which are currently limited to boats and crafts up to 40m and 300 tonnes displacement.

"Since 1953, we have delivered more than 1,000 boats of various types, sizes and functions to satisfied customers," he said.

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Northport Bags Frost & Sullivan Award
July 24, 2009 09:49 AM
By Zakaria Abdul Wahab

SINGAPORE, July 24 (Bernama) -- Klang terminal port operator, Northport Malaysia Bhd, has added another feather to its cap after it bagged the Asia Pacific Multi-Purpose Terminal Operator of the Year Award from Frost & Sullivan here last night.

The port recently clinched The Best Container Terminal Award (Asia) at the Asian Freight & Supply Chain Awards 2009 (AFSCA) held in Hong Kong.

Frost & Sullivan presented 37 awards to the best companies in the Asia Pacific transportation and logistics industry at an awards ceremony.

Northport, which handled a total of 3 million TEUs (twenty-equivalent-units) in 2008, has the widest shipping connectivity among ports in Malaysia with more than 123 container shipping lines linking the port with more than 300 ports worldwide.

It has a world-class infrastructure of container and conventional terminals and offers a complete range of cargo handling facilities as well as logistics services.

Last year, 81 shipping lines as well as 44 conventional and 502 container vessels made approximately 8,000 ship calls at Northport.

Partner at Frost & Sullivan, Kavan Mukhtyar, said that the awards, into their fourth consecutive year, sought to recognise companies for demonstrating outstanding achievement and superior performance.

Five more Malaysian-based companies also received six Frost & Sullivan country-level awards, namely, DB Schenker (Automotive Logistics Service Provider of the Year, DHL (Pharmaceutical Logistics Service Provider of the Year), Trans-Asia Shipping Corporation Bhd (Hi-Tech Logistics Service Provider of the Year and FMCG & Retail Logistics Service Provider of the Year), Poslaju (Domestic Express Service Provider of the Year) and MISC Integrated Logistics Sdn Bhd (Domestic Logistics Service Provider of the Year).

-- BERNAMA

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Global Carriers expects two new vessels soon
Monday July 27, 2009

PETALING JAYA: Global Carriers Bhd expects the fourth and fifth vessels under its fleet renewal programme to be delivered later this year.

The third vessel, the MT Budi Mesra, had its maiden voyage event on Saturday at the Star Cruises Terminal in Port Klang. It is a 7,000-deadweight tonne (dwt) double-hull oil tanker vessel.

Global Carriers said in a statement that the MT Budi Mulia and MT Budi Mulia Dua – the first and second new vessels – were delivered late last year and early this year respectively and are currently operating under various charters.

MT Budi Mesra was built at the Ningbo Dongfang Shipyard in China.

It was constructed in 18 months and delivered to Global Carriers in June 2009.

The Malaysian-flagged vessel began its maiden voyage from Zhoushan Island in China on July 10 and arrived at Port Klang on July 19.

Global Carriers expects MT Budi Mesra to have a positive effect on the group’s future performance.

The vessel is jointly owned by Global Maritime Ventures Bhd, a member of the Bank Pembangunan Group.

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Shipping rates facing short-term fluctuations
Monday July 27, 2009
By SHARIDAN M. ALI

PETALING JAYA: The current downtrend in shipping rates may be no more than short-term fluctuations, although excess capacity could weigh on the Baltic Dry Index (BDI) going forward, analysts said.

The BDI, a measure of shipping costs for commodities, slid 5.3% over a one-week period to 3,355 points on July 23. Year-to-date, the BDI reached its peak at 4,291 points on June 3 while its lowest level was 995 points on Jan 26.

CIMB Research analyst Raymond Yap told StarBiz that the recent downtrend in BDI was a short-term fluctuation largely influenced by iron ore demand and an over supply of ships.

“China, the largest iron ore importer, is overstocked. But, generally, the BDI is expected to be stronger in the next six months,” he said.

According to Lloyd’s List, the volume of iron ore imported into China has dropped in the last two months from a record high of 57 million tonnes in April, with volumes falling to 53.5 million tonnes in May but rising slightly to 55.3 million tonnes in June.

Kenanga Research said it was very hard to pinpoint the factors currently pushing the BDI down but the general view was that index was still very much caught in a downturn, with excess capacity a continuing concern.

“The dry bulk vessels orderbook is still too huge that cannot be absorbed by the current demand,” said analyst Liong Chee How, in reference to the high number of orders for dry bulk vessels.

“It is too large that even stable economic conditions two years ago would not have been able to support the current orderbook.”

“The consensus is that dry bulk fleet growth will continue to accelerate in the next two to three years when demand growth is likely to lag despite very high scrapping,” he added.

In a report on the dry bulk situation, Kenanga noted that “Drewry (shipping consultant) has painted a bleak dry bulk outlook, projecting average annual fleet growth of 8.7% for the next five years which will produce an excess capacity of 105 million dead weight tonnes (dwt) this year, 140 million dwt in 2010 and 200 million dwt in 2011 respectively.”

Even with a forecasted scrapping of 20-30 million dwt, or 5% to 7.5% of the global fleet, “the outcome is still a 6% to 8% net fleet growth for 2009 when demand is clearly on the fall,” the research house said in the report.

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Malaysian ports turn in better second quarter
By Kang Siew Li Published: 2009/07/30



Malaysian ports handled 10 per cent more containers in the second quarter of the year compared to the first, reflecting a recovery in both domestic and transhipment cargo.

Container traffic at the 10 major ports rose to 3.79 million TEUs (20-foot equivalent units) from 3.44 million in the periods reviewed.

Transhipment traffic, comprising almost two-thirds of the total, was up 11 per cent to 2.48 million TEUs from 2.22 million. Transhipment cargo is that which arrives in the country and is transferred to another ship before continuing to its final destination.

Export containers showed a 10.2 per cent increase to 670,718 TEUs, while import traffic rose 4.4 per cent to 640,469 TEUs.

In the January-June period, however, container throughput fell 7.7 per cent to 7.24 million TEUs from the first half of last year. Cargo tonnage was down 11.6 per cent to 168,806 tonnes.

The Transport Ministry's special maritime adviser, Datuk Captain Abdul Rahim Abd. Aziz, said the drop in first half container volume was in line with the performance of other ports in the Asean region, which saw 15-30 per cent declines.

"For instance, ports in the Philippines reported a decline in cargo volume of an average 20.6 per cent in the first half, while Vietnam's port container throughput was down between 14 per cent and 30 per cent and Thailand, an average drop of 35 per cent," he told Business Times in an interview.

"While container traffic seemed to have stabilised in the second quarter, port operators in Asean remain uncertain whether the market has hit bottom.

"At the recent Asean Ports Association (APA) working committee meeting in Kota Kinabalu, the most optimistic prediction of a recovery was from the middle of 2010," said Abdul Rahim, who is also the APA working committee chairman.

To survive the current economic downturn, port operators have resorted to various cost-cutting strategies, including sending fewer employees overseas for trips or meetings and deferring purchases of new equipment, he added.

Port Klang, comprising Northport and Westports, solidified its position as the largest container port in the country.

Its container throughput rose 7.8 per cent in the second quarter compared to the first three months. It moved 1.73 million TEUs against 1.6 million before.

Transhipment volume was 996,508 TEUs, up 4.6 per cent from the first three months, and 57.7 per cent of Port Klang's total throughput.

The Port of Tanjung Pelepas (PTP) in Johor continued to be the second largest container port, handling 1.47 million TEUs in the second quarter.

It recorded 17.6 per cent growth from 1.25 million TEUs in the first quarter, with 94.4 per cent of all volume coming from transhipment.

Bintulu Port saw 16 per cent growth to 57,895 TEUs from 49,875 in the first quarter.

Johor Port handled 216,744 TEUs in the second quarter, up 7.3 per cent from 201,915 in the first, thanks to the increase in transhipment and export cargo.

Penang Port was the only port to record a decline in the quarters reviewed, down 24.2 per cent to 151,165 TEUs from 199,391.

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Box traffic at Malaysia ports up 10% in Q2
31 July 09 The Business Times
Source: http://www.sgmaritime.com/SingleNews...ec_code=426411

(KUALA LUMPUR) Malaysian ports handled 10 per cent more containers in the second quarter of the year compared to the first, reflecting a recovery in both domestic and transhipment cargo, reported Malaysia's Business Times yesterday.

Traffic at the 10 major ports rose to 3.79 million TEUs (20-foot equivalent units) from 3.44 million previously.

Transhipment traffic, comprising almost two- thirds of the total, was up 11 per cent at 2.48 million TEUs from 2.22 million.

Export containers showed a 10.2 per cent increase to 670,718 TEUs, while import traffic rose 4.4 per cent to 640,469 TEUs.

In the January-June period, however, container throughput fell 7.7 per cent to 7.24 million TEUs from the first half of last year. Cargo tonnage was down 11.6 per cent at 168,806 tonnes.

Transport Ministry special maritime adviser Abdul Rahim Abdul Aziz said that the drop in first-half container volume was in line with the performance of other ports in the Asean region, which saw 15-30 per cent declines.

'For instance, ports in the Philippines reported a decline in cargo volume of an average 20.6 per cent in the first half, while Vietnam's port container throughput was down between 14 per cent and 30 per cent, and Thailand, an average drop of 35 per cent,' he told the paper.

'While container traffic seemed to have stabilised in the second quarter, port operators in Asean remain uncertain whether the market has hit bottom.'

'At the recent Asean Ports Association (APA) working committee meeting in Kota Kinabalu, the most optimistic prediction of a recovery was from the middle of 2010,' said Capt Abdul Rahim, who is also the APA working committee chairman.

To survive the current economic downturn, port operators have resorted to various cost-cutting strategies, including sending fewer employees overseas for trips or meetings and deferring purchases of new equipment, he added.

Port Klang, comprising Northport and Westports, solidified its position as the largest container port in the country. Its container throughput rose 7.8 per cent in the second quarter compared to the first three months. It moved 1.73 million TEUs against 1.6 million before.

Transhipment volume came to 996,508 TEUs, up 4.6 per cent from the first three months, and making up 57.7 per cent of Port Klang's total throughput.

The Port of Tanjung Pelepas (PTP) in Johor continued to be the second largest container port, handling 1.47 million TEUs in the second quarter. It recorded 17.6 per cent growth from 1.25 million TEUs in the first quarter, with 94.4 per cent of all volume coming from transhipment.

Bintulu Port saw 16 per cent growth to 57,895 TEUs from 49,875 in the first quarter.

Johor Port handled 216,744 TEUs in the second quarter, up 7.3 per cent from 201,915 in the first, thanks to the increase in transhipment and export cargo.

Penang Port was the only port to record a decline in the quarters reviewed, down 24.2 per cent to 151,165 TEUs from 199,391.

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Penang Port disputes ministry's figures
Published: 2009/08/01

TERMINAL operator Penang Port Sdn Bhd (PPSB) has disputed Thursday's figures from the Transport Ministry which indicates that the port saw a 24.2 per cent decline in container throughput to 151,165 TEUs (20-foot equivalent units) in the second quarter of the year from 199,391 TEUs in the first quarter.

PPSB general manager of marketing, Ghazali Jaafar, said the volume of containers actually rose 13 per cent to 225,322 TEUs in the second quarter from 199,391 TEUs in the preceding period.

He attributed the growth to the increase of import and export boxes, which rose 11 per cent and 15 per cent to 103,787 TEUs and 121,535 TEUs, respectively.

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From Port Klang direct to LA, Shanghai
Published: 2009/08/03

GLOBAL logistics company DHL Global Forwarding has launched a new direct less than container load (LCL) service from Port Klang to Los Angeles and Shanghai.

With this new service offering, DHL now serves 54 destinations in the US with its inland network via Los Angeles.

And through Shanghai, DHL is able to provide direct service in China with fast and reliable transit times.

In a statement issued last week, DHL Global Forwarding head of LCL management for Asia-Pacific Clas Thorell said, globally the company handles more than 2 million cu m of LCL freight per year.

The launch of direct services from Malaysia to the US and China marks the introduction of 17 new direct LCL routes launched by DHL this year, as the market leader continues to expand its global footprint.

DHL Global Forwarding chief executive officer for South Asia-Pacific, Amadou Diallo, said DHL leads the market with its LCL freight handled per year via 45,000 point-pairs.

"Since the start of 2009, we have introduced 17 direct services from China, Thailand, Japan, India as well as Malaysia to key cities around the world, enabling Malaysian businesses to tap into an unrivalled network and leverage opportunities in global markets," he said.

"The new guaranteed weekly direct LCL services will enable shipments to arrive up to a week earlier through Danmar Lines, DHL's in-house carrier," said DHL Global Forwarding Malaysia managing director Reto Pergher.

Malaysia is China's second largest trading partner, after Singapore. Total trade between Malaysia and China in 2008 increased by 10.3 per cent to RM130.1 billion, with total import and export totalling RM66.9 billion and RM63.2 billion respectively.

In 2008, Malaysian exports to the US totalled RM82.74 billion (12.47 per cent of total exports) and imports from the US totalled RM56.45 billion (10.82 per cent of total imports).

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Maritime body to make shipping sector more eco-friendly
Monday August 3, 2009
By CHERYL RITA KAUR

THE International Maritime Organisation (IMO) will intensify efforts to reduce the contribution of the shipping industry to global warming and climate change.

Specifically, the IMO’s marine environment protection committee (MEPC) 59th session recently focused on greenhouse gases (GHGs) emission.

The significance of the efforts by IMO is also clearly illustrated from the theme chosen for this year’s World Maritime Day, which will be celebrated on the Sept 24 – Climate Change: a challenge for IMO too!

Delegating the limitation and reduction of GHGs from shipping would ensure that international shipping is regulated by a single global regime applying equally to all ships.

If shipping is to have a positive impact on climate change, it would need a global regime developed and enacted by IMO and applied to all ships engaged in international trade.

Although shipping is perceived as the most safe, environmentally friendly, and fuel-efficient of all modes of transport, efforts by the IMO are seen as being a crucial point to regulate harmful emissions from international shipping activities, as land-based air pollution sources are being regulated toward reducing their contributions worldwide.

As such, shipping is expected to contribute, however modestly, to the wider efforts being made to arrest global warming.

Shipping carries 90% of world trade and as such, balancing the future growth of world trade against an essential reduction in greenhouse gases is not a decision to be taken lightly.

The second IMO GHGs study on GHGs from Ships (2009) estimated that ships engaged in international trade in 2007 contributed about 870 million tonnes or about 2.7% of the world’s anthropogenic carbon dioxide (CO2) emissions.

It also stated that emission reductions were feasible through technical and operational measures as well as through the introduction of market-based reduction mechanisms.

In the absence of global policies to control GHG from international shipping, the emissions is estimated to increase by between 150% and 250% (compared to 2007 emissions) by the year 2050 due to expected continued growth in international seaborne trade.

Thus, the MEPC of the IMO had agreed to disseminate a package of interim and voluntary technical and operational measures to reduce GHG emissions from international shipping and has agreed on a work plan of proposed market-based instruments to provide incentives for the shipping industry.

This include the formulation of interim guidelines on the method of calculation, and voluntary verification of energy efficiency design index for new ships; and guidance on the development of a ship efficiency management plan for new and existing ships, which incorporates best practices for fuel efficient operation of ships among others.

In addition to these, the MEPC also held an in-depth discussion on market-based instruments and agreed a work plan for its further consideration of the topic, as of its next session MEPC 60th session in next March.

Although significant development is being made on the matter, it is crucial however, that the outcome of strategies being developed at the IMO be pragmatic, realistic, workable, cost-effective and well-balanced decisions; in the formulation of which the views of the developing countries will be duly taken into account.

As for Malaysia, being one of the world’s top twenty trading nations, the importance of the maritime sector to the country certainly cannot be underestimated. Besides housing some of the world’s major ports, about 95% of the country’s goods traded are transported by sea. However, ships are currently not required to meet air pollution controls as other land-based transportation is required to do so in Malaysia.

As such, taking note of the development of the issue at the international level would be crucial in establishing the required time frame and targets in preparation for smooth adoption and implementation of the convention at the national level, once we decide on ratifying it.

Regulation for the prevention of air pollution from ships was adopted in the 1997 protocol to the International Convention for the Prevention of Pollution from Ships, 1973 and is included in annex VI of the convention. The annex covers a number of pollutants from shipboard operations that affect air quality, which include nitrogen oxide, sulphur oxide, fuel oil quality, incinerators, ozone depleting substances, volatile organic compounds, and vapour emissions.

The convention entered into force in May 2005 and has, so far, been ratified by 53 countries, representing approximately 81.88% of the gross tonnage of the world’s merchant shipping fleet.

Cheryl Rita Kaur is a researcher at the Centre for Maritime Security and Environment at the Maritime Institute of Malaysia (MIMA). Views expressed in this article are those of the writer and should not be regarded as necessarily reflecting the views of MIMA.

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Kuantan Port facelift
Monday August 3, 2009

GENTING HIGHLANDS: Kuantan Port will get a facelift to attract international vessels to the port - which will in turn boost the economy in Pahang, Transport Minister Datuk Seri Ong Tee Keat said.

Ong said facilities and services would be upgraded; the channel deepened and a new retention wall constructed.

The plans had been approved by the Cabinet and the Economic Council, he said at the Pahang MCA convention here yesterday.

Ong, the MCA president, also instructed Pahang MCA to solve various issued faced by farmers in Cameron Highlands.

Problems included the use of traditional farming methods, improving products promotion and packaging, as well as issues concerning farming land.

He also urged them to draw up strategies to revamp the party; and regain the one Parliament and two state seats in Pahang that had fallen to the opposition.

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Penang Port listing set to see the light of day
By Kang Siew Li Published: 2009/08/04

TERMINAL operator Penang Port Sdn Bhd (PPSB) can finally move forward with plans to privatise and float its shares on Bursa Malaysia as it looks set to hive off its loss-making ferry operation to state infrastructure company Syarikat Prasarana Negara Bhd.

It is understood that Prasarana is ready to take over the ferry operation pending approval from the Prime Minister’s Department.

A takeover is expected this year.

The ferry service between Penang island and Butterworth has been a major hindrance to state-owned PPSB’s listing plans in the past due to the losses incurred, running into some RM13 million to RM15 million a year.

“The listing of PPSB will most likely go through this time.

In the past, PPSB wasn’t able to do so because of the loss-making ferry service, which the approving authorities believed could make the company’s IPO (initial public offering) unattractive to the public,” a source close to the situation told Business Times.

PPSB’s former chairman, Datuk Abdul Latif Abdullah, and automotive logistics provider Konsortium Logistik Bhd were previously reported to have expressed interest in taking over PPSB.

PPSB has been harbouring hopes of hiving off its ferry operation as early as 2004 as it has been dragging down the company’s overall profits from day one.

The problem lies with its fares, which are said to be too low.

In an interview with
Business Times on August 23 2004, Abdul Latif spoke about a plan to hive off the ferry operation to the government but still run it for a fee.

The move was likened to the 2002 Widespread Assets Unbundling exercise of Malaysian Airline System Bhd (MAS), which saw Penerbangan Malaysia Bhd take ownership of the national carrier’s non-profitable domestic operations.

However, the plan fell through.

The public ferry service was absorbed into PPSB as part of its corporatisation deal with the Penang Port Commission (PPC) in January 1994.

“PPSB and PPC will have to revisit the agreement so that the government will totally be in control of the ferry operation.

But it (Prasarana) cannot run the ferry on the current tariff structure because it will lose money,” said the source.

Passengers pay RM1.20 each, while the fare for a car is RM7.70.

“Previous calculations have shown that the fare the operator will have to charge to break even is RM3.20 per passenger,” the source added.

Still, it is unlikely that Prasarana will be able to raise ferry fares once it takes over as that will generate fierce opposition from the public.

“The government is more likely to inject funds to subsidise the ferry operation,” the source said.

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Originally Posted by nazrey

Sepangar Port, Sabah (NEW)

Sabah Local Companies Urged To Look At Foreign Markets
August 10, 2009 19:01 PM

KOTA KINABALU, Aug 10 (Bernama) -- Chief Minister Datuk Seri Musa Aman Monday called on local companies to give serious attention to the potential in external trade or the global market by identifying competitive marketing strategies.

He said the world market presented a tremendous opportunity, where Sabah's external trade value was RM63.75 billion last year, with RM37.22 billion from exports and RM25.03 billion from imports.

"This trade capacity can be further strengthened with Sabah's strategic location in the Asian region, the expansion of its Kota Kinabalu International Airport and the Sepanggar Port which is the main gateway to Sabah.

"I am confident that it is not only an important platform for local companies to penetrate foreign markets but will also be a catalyst for foreign investments into Sabah, more so with the many attractive incentives offered by the state government to investors," he said at the launch of Borneo International Trade Fair (BITF) 2009 here today.

His text speech was read by the Minister of Tourism, Culture and Environment Datuk Masidi Manjun.

Musa said Sabah's economy was also expected to see a positive impact as the country practised an open economy and furthermore the federal government had recently liberalised several sectors including the financial and services sector.

Against such backdrop, international trade fairs like the BITF will contribute towards increased trade activities in the state, besides providing an ideal opportunity for local entrepreneurs to promote their products and services to foreign countries.

"Even then, products and services from local entrepreneurs must have a high competitive edge and a global appeal in order to fully penetrate the global market.

"The world market now is already filled with the idea of globalisation and a world without borders which makes it possible for various products and services to compete and enter any market in selected countries," Musa said.

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'Sabah ports must use new system for safety, security'
Published: 2009/08/17

PORTS in Sabah must have the Vessel Traffic Management System (VTMS) to ensure the safety and security of vessels to and from the ports, Deputy Chief Minister Datuk Joseph Pairin Kitingan said last Friday.

"There is a need for ports and shipping operators as well as those using our seaway to use this system as it ensures all sea activities will be safe.

"It ensures the smooth running of vessels within the area of surveillance," he told reporters after launching the first VTMS in Sabah at the Sapangar Bay Container Terminal near Kota Kinabalu.

Earlier, VTMS project manager Benjamin Nair said the system, located at Sapangar Bay, would monitor within a 48km radius.

When asked by Pairin, who is also State Infrastructure Development Minister, why surveillence could not go beyond the 48km, Benjamin said it was because the location of the port that was nearby the Royal Malaysian Naval Base.

"We are very fortunate that we are close to the naval base. So, beyond 48km would be under the navy's surveillence," he said.

Benjamin also said that the system operated with sensors such as closed circuit television (CCTV), very high frequency (VHF) direction finder and single-sideband (SSB) radio, and could contribute substantially to the safety, efficiency and security of maritime traffic and the protection of the environment. - Bernama

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Nation's first submarine makes port call at Cochin
Published: Wednesday August 19, 2009 MYT 12:54:00 PM

COCHIN: Malaysia's first submarine, on its maiden voyage to the naval base in Sepanggar Bay, Sabah, made a port call at the Indian naval dockyard here on Tuesday.

The Scorpene-class submarine, named KD Tunku Abdul Rahman, which began its journey on July 9, transited in Jeddah and Djibouti, before reaching Cochin waters in Kerala.

In 2002, the Malaysian government acquired two submarines, jointly built by the French DCNS and Spanish Navantia experts at Cherbourg in France.

In January, the first submarine was handed over to the Royal Malaysian Navy at the naval base in Toulon.

INS Sujata (Indian navy's patrol vessel) received the submarine and the naval band INS Krishna gave them a warm reception.

No joint operation was planned.

"Only a football match will be played with Indian naval cadets. Indian naval officials were present to receive the sub's crew," a high-ranking official of the Indian navy's Southern Command said.

After three days in Cochin, the diesel-powered submarine will depart for Lumut and Port Klang before reaching its final destination at Sepanggar in September.

The submarine commanded by Commander Zulhelmy Ithnain of the Royal Malaysian Navy is sailing with 35 crew members on board.

The underwater machine is named after Malaysia's first prime minister Tunku Abdul Rahman. -- Bernama