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Port Competition in Malaysia

A. Mustakim C.K.M. Faizul M. Faris Mawardi M. Hanafi Mazlan Syafiq Affandi M.Zulkarnain M.Zulhusnie

Universiti Teknologi Malaysia

ABSTRACT
The journal was written mainly to explain the port competition in Malaysia. There are at least 13 ports in Malaysia with their own capabilities and facilities. Most of the data in this journal were obtained through electronic resources. In this journal, the port were compared by 3 major factors which are port facilities, port service and port information. This includes the particulars of the ports, capacities and size of the port. Based on these criteria, port Klang was chosen as the most competitive among all. In addition to our research, the trade and shipping industries in Malaysia are still growing. Similarly, so are the ports. Consequently, this situation leads to increasing demand and investment on shipping industries. In conclusion, some of factors discussed to evaluate and make comparison between the ports were included in the final chapter of this journal.

The main function of the ports is to facilitate the large scale movement and delivery of goods. Nowadays, maritime freight transport has grown at a fast rate and many changes happened over decades. Freight volume and container have grown along with the global trade and geographical dispersion of the goods. With the industrial sector which has evolved rapidly, it has rendered the ports environment with more competition between ports and more challenging. Many agents along the supply chain have engaged in the activities and lead to the efficiency in the movement of cargos. In 2009, a total of 8 billion tonnes of cargo was loaded onto ships worldwide with the value around $5 trillion. For large volumes of goods and cargo, the ports must be able to handle them with a systematic system that they created to avoid any difficulty. According to the United Nations Conference on Trade and Developments (UNCTAD) 2010 report, the worldwide maritime freight volumes has doubled between 1990 and 2009. This showed that the water freight sector is growing significantly.
Table 1: development of international seaborne trade

INTRODUCTION
Water transport has historically underpinned international trade and contributed to the economic growth for its country. The water transport is facilitated by the ports which provide a linking between water transport and surface transport. For the ports to exist in between these two different types of transport to provide the services, are derived from the demand that depends on the demand for freight at a destination and demand for the travel by passengers. Therefore, it can be said that ports are the chains of services that deliver the outcome from the goods and movement of the people (passengers).

Thus, the ports are very important for the functioning of the world economy as well as for the country economic. As such, there is a need to ensure the appropriate competitive or regulatory constraints to bond ports in Malaysia to behave in a competitive manner, in terms

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of price levels, services standards and degree of innovation. Ports are infrastructure that can be organized in various ways. The ownership of structure of ports is influenced by the characteristics of each individual port, the customers it serves and its scales. Based on these factors there is no uniform model for structure of the port industry. Below is one of the illustrations of the value chain in maritime/port sector. These factors can be divided into smaller parts which are: Services and product competing Brand identity Industry concentration Product different Diversity of rivals Technology used Capability Political factor Geographic factor

BACKGROUND
The growth in the industrial sector in Malaysia since 1990s has leaded the Malaysia one of the most important nation in the global trade. The phenomenal growth in global trade has had a huge impact in the development of the ports and shipping in Malaysia. In Malaysia, this has spurred investment and the development of various infrastructures to support increasing trade with the worlds nations. In just a few decades, there have been many growths of ports and shipping activities which are recognized as essential contributors in facilitating Malaysias trade and provide economic growth for the nation. The ports in Malaysia provide a critical in the trading and transport and at the same time provide the link between shipping service and the inland transport system. Realizing the challenges, many ports have been putting an effort as to become one of the main ports in Malaysia. According to Michael E. Porter, there are five major sectors that build the shipping industry competition which consist of potential competitors, suppliers, buyers, and substitute products or services.

With the growth of many ports in Malaysia, surely there will be a competition between them. There are many factors which lead the competition between ports in Malaysia. The competition matter because they can appear as the one to possessing the market power which will affect the welfare of the peoples. In this journal, the study will cover about the ports that arise in Malaysia with concerns of the competition and the factor that effect the economic trades at the ports.

PORT COMPETITION
Johor port Introduction. The Johor Port is situated in Pasir Gudang, Johor is a modern port equipped with all facilities to meet the requirements of international level cargo and ship handling operations. It is also equipped with a highway communication network system linked to the whole of Peninsular Malaysia from north to south. The ports area of operation has been recognized as a Free Trade Zone. Thus, the Johor Port functions as a center for increasing the flow of international trade (import, export and transshipment) and encouraging the manufacturing industry in the ports area of operation. According to Wikipedia, The Johor Port can accommodate 43 million tons of cargo including 1 million TEUs of containers. Below is the port layout for Johor port;

Chart 1: Forces competition

that

shapes

industry

This terminal is exclusively for handling dangerous cargo comprising chemicals, petroleum and LPG products. It is equipped with fire-prevention equipment and sophisticated safety features. It has a 487,000 tons capacity storage place, equipped with a direct pipeline. The maximum pipeline productivity is about 1,500 tons per hour.
Table 3: facilities for liquid bulk

Jetty DCJ1 DCJ2 DCJ3 DCJ4

Figure 1: Johor port layout

Length 200m 105m 405m 240m

Depth 11m 9m 13m 13m

Max. DWT 104 000 7 000 120 000 95 000

Facilities and services. Listed below are the services and facilities provided by Johor port to cater high demand in logistic businesses;

d) Edible bulk service

Table 4: facilities for edible bulk service

a)

Container service

The wharf is 760 metres in length and equipped with 5 Post Panamax Quayside Cranes, 17 transfer cranes, 4 reach stackers and 46 prime movers. The container area is 178,000 square metres, with 5,500 slots that can accommodate 1,000,000 TEUs complete with container reefers facilities. The terminal is also equipped with a rail system network, a computerized trekking system and warehouse facilities for cargo storage.
Table 2: facilities for container services

Jetty OJT1 OJT 2 OJT 3 OJT 4 e)

Length 215m 215m 195m 130m

Depth 11m 10m 11m 10m

Max. DWT 32 000 2 660 53 300 2 660

Break bulk service

Jetty CT1 CT2 CT3

Length 253m 253m 253m

Depth 15m 15m 15m

Max. DWT 104 000 104 000 104 000

This terminal has 3 wharves, 536 m long, and handles general cargo. Examples are cargo in drums, palletize cargo, sawn timber and others. It has mobile shore cranes that can load and unload up to 300 tons of cargo. The Break Bulk Terminal in Johor Port has also obtained clearance from Landon Metal exchange (LME) to handle non-metal iron cargo.
Table 5: facilities for break bulk service

b) Liquid bulk service There are two, four-wharf jetties for Liquid Bulk Cargo Terminals namely the Edible Oil Bulk Terminal and the Dangerous Liquid Bulk Terminal.

Jetty Lighterage W1 W2 W3 f) Dry bulk service

Length 60m 110m 183m 183m

Depth 6m 6m 11m 11m

Max. DWT 5 000 20 000 30 000 30 000

c)

Dangerous liquid bulk service

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choice of shippers in the Eastern Corridor area. It is the Port which other regional ports within the Asia Pacific Rim would like to be associated with. In addition, the Port is positioning itself as a regional centre for transhipment activities as well as cargo consolidation and distribution activities.

This terminal is for handling dry bulk cargo such as grain, wheat, cement and others. Equipped with 3 cranes, using a conveyor system, it can channel cargo from a ship straight into the cargo owners storage place. The handling productivity is 1,000 tons per hour. Besides facilities provided by the private sector, there is a wide space for 72,000 tons of edible goods and 87,000 tons of non-edible goods.
Table 6: facilities for dry bulk services

Facilities and Services a) Liquid chemical service

Jetty W4 W5 W6

Length 192m 217m 214m

Depth 13m 13m 13m

Max. DWT 60 000 60 000 60 000

g) Multi-purpose bulk service

The LCB is a specialized terminal to handle liquid chemical cargo. Its facilities are fully operational to cater the needs of petrochemical industries. The berth is 289m long and is capable of accommodating vessels up to 150,000 DWT with a draught of 16.4m. It also has space available for 50 pipelines and 6 loading arms and is fully equipped with safety features.
Table 8: facilities for liquid chemical services

This terminal is for handling general cargo and bulk cargo goods that do not need conveyors. It has 5 wharves, 1.13 kilometres in length, and its storage area comprises 10,600 square metres of covered storage and 485,623 square metres of open storage.
Table 7: facilities for MPS

Berth Liquid Chemical Berth No. 1 Liquid Chemical Berth No. 2 Liquid Chemical Berth No. 3

No. of Berth 1

Length 240m

Draught 11.2m

DWT 40 000

Jetty W7 W8 W9 W10 W11S W11N

Length 195m 195m 195m 195m 230m 120m

Depth 13.5m 13.5m 13.5m 13.5m 11m 5m

Max. DWT 60 000 60 000 60 000 60 000 15 000 10 000

240m

11.2m

40 000

240m

11.2m

40 000

b) The wharf The Wharf, with a quay of 648 metres length and depth of 17 metres is one of the deepest seaports in Malaysia. As an all-weather port, it is capable of handling vessels up to 150,000 DWT and various types of cargo, dry bulk and liquid bulk. It is also a regional centre for transhipment activities as well as cargo consolidation and distribution activities.

Kemaman port Introduction. The Port of Kemaman, located on the East Coast of Peninsular Malaysia, is one of the deepest seaports in Malaysia and acting as the new gateway to the Asia-Pacific region. According to Wikipedia, it is capable of handling vessels up to 150,000 DWT and various types of cargo ranging from general cargo, dry bulk to liquid bulk. The Port of Kemaman is logical

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Table 9: wharf facilities

Berth West Wharf

No. of Berth 2

Length 510m

Draught 16.5m

DWT 150 0

provided by bintulu port to cater the needs of shipping activities in Sarawak;

Table 10: petrochemical services facilities

MLNG SATU MLNG DUA MLNG TIGA TOTAL Bintulu port Introduction. The Bintulu Port is situated in bintulu, Sarawak is a modern port equipped with all facilities to handle most of operation related to petrochemical industry as well as other shipping services. It is strategically positioned to serve the resource-rich Sarawak hinterland, Malaysias major LNG hub and the surrounding Brunei, Indonesia, Philippines and other East Asian region. Below is the port layout of bintulu port;

Capacity (Mtpa) 8.2 9.0 6.8 24

Trains (no) 3 3 2 8

Start up 1983 1996 2003

Table 11: port facilities Type of Berth Petrochemic al Terminal LPG Jetty LNG Jetty No. of bert h 2 1 3 Lengt h (m) 200 492.8 450 Dept h (m) 11 11 15 DWT (Tonne s) 30 000 51 000 80 000 Capacit y (m tonnes) 1.8 0.7 28.3

b) Container, general, bulk and multi-purpose cargo Bintulu port has successfully established shipping connectivity to multipledestinations. Approximately 15 shipping lines currently serve Bintulu Port, with fourlines offering direct services to the Far East ports. Main line operators such as Evergreen Marine and HUBline both call at Bintulu Port weekly. The major port calls that they make include Port Klang (8x weekly), PasirGudang (8x weekly), Singapore(5x weekly), Kota Kinabalu (4x weekly) and Hong Kong (4x weekly). Evergreen is oneof Bintulu Ports main customers.
Table 12: facilities for container, general, bulk and MP cargo
Type of Berth Container Terminal General Cargo Terminal Bulk No. of berth 2 3 1 Length (m) 450 514.5 270 Depth (m) 14 10.5 13.3 DWT (Tonnes) 55 000 25 000 60 000 Capacity (m tonnes) 400 000 TEUs 2.5 0.9

Figure 2: Bintulu port layout

Facilities and services. Listed below are the two main services in bintuluport ; a) Petrochemical

Sarawak is enriched with petroleum sources, thus this could benefit the development of bintulu port. Bintuluports are capable of handling the petrochemical product. Listed below are some of the facilities

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Terminal Multipurpose Terminal 5 950 14 40 000 4.1

Table 13: Port facilities

Kuantan port Introduction. Kuantan port is situated at TanjungGelang on the eastern seaboard of Peninsular Malaysia between latitude 03 58' N, longitude 103 26.4' E, some 25 kilometers north of Kuantan, the state capital of Pahang. To the major sea lanes of the shipping world, Kuantan Port serves primarily the Pacific Rim, the Middle East, the Far East, Europe and Asian region. Sailing time from Kuantan Port to Singapore and Hong Kong takes 18 and 60 hours, Sailing time to other destinations are 4 days to Tokyo, to the Middle East 7 days, Europe 23 days, the Mediterranean and the west coast of USA approximately 15 and 18 days respectively. Kuantan Port is also well-connected by road and rail to other parts of Peninsular Malaysia and by air to major world destinations via Kuala Lumpur. Located approximately 220 kilometers away from Kuala Lumpur, Kuantan Port is about 3 hours by road or 40 minutes by air from Kuala Lumpur. Kuantan Airport is 12 kilometres to Kuantan town and approximately 38 kilometres to the Port. Public taxis are available at Kuantan Airport.

Kuching port Introduction. Kuching Port Authority was the first organized port in the state of Sarawak. It was established in 1961 under the Port Authorities Ordinance 1961. Being situated just outside Kuching, the capital city of Sarawak and the seat of the State Government and administration, it has grown to become a premier port of the State served by numerous shipping lines connecting it to the regional hub ports. All its terminals are in close proximity to the industrial estates to facilitate easy cargo movement. Both terminals have easy access to highway and coastal routes to all main towns in Sarawak. Kuching Port Authority is the first Malaysian port authority to have its Container Handling Management System accorded the MS ISO 9002 certification. Kuching port has to terminal which is Pending Terminal and Senari Terminal.

Figure 3: Kuantan port layout

Facilities and service. Listed below are the services and facilities provided by Kuantan port:
Figure 4: Pending Terminal

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Table 15: storage facilities

Figure 5: Senari Terminal

Service and facilities. The port services and facilities provided by Kuching Port Authority to the port users are:
Table 14: berthing facilities

Labuan Port Introduction. The Port is located off Northwest coast of Borneo, at 05 latitude North and 115 longitude East and lies about 10 km Southeast off the mainland of Sabah. Its deep bay provides ideal conditions for large vessels to anchor and is free from hurricane and typhoons and enjoys a tropical climate with two annual monsoon seasons. Daily temperatures average between 28 to 32 degrees Celsius. The Labuan Liberty Port is the main port of entry for vessel carrying general cargoes, bulk cargoes and containers in Labuan. It has a 244-meter long jetty with draft of 8.54 meter and capacity to handle vessels of up to 16,000 DWT.

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12. Issuance and renewal of security passes for individuals and vehicles. 13. Parking facilities. 14. Rental of machineries and equipment. 2 unit of KALMAR Reach stackers 40MT 12 unit prime movers / trailers 10 unit forklifts 2.5MT to 7MT
Figure 6: Labuan port layout

4 unit lorries 3MT 15. Management and coordination of haulage, handling and transportation services. Port advantages. The port has a cargo handling capacity of 100,000 TEUs annually. Despite its small size, the port has its own unique strengths compared to neighboring ports: 1. As a duty free port, customs procedures are much more relaxed. By using the appropriate importexport customs declaration forms, good can be cleared more speedily and without hassle. Being small, it can provide dedicated and specialized logistics arrangements for speedier handling. There is usually zero waiting time for berthing and cargo discharging (weather permitting). Also, all facilities are located next to each other thus saving much time, movements and handling costs. Comparatively, port charges such as storage charges, container handling fees and others are among the lowest in Malaysia. Certified as a safe port and operates in accordance with the International Ship and Port Facility Security Code (ISPS Code). Much room to grow in terms cargo volume, facilities, equipment and services. Various business opportunities in the logistics sector. The port is capable of providing integrated logistics solution to those involved in the oil and gas sector in line with the aspiration of Labuan to become a vibrant oil and gas hub.

Service and facilities. LLPM and its related companies have the necessary experience, know-how, manpower and equipment to provide the following services at Labuan Liberty Port: 1. 2. Short and long-term storage of cargoes. Rent of space for the purpose of sorting, checking, re-bagging, strapping of cargo, stuffing or unstuffing of containers etc. Handling of general cargo received, stored and delivered within storage area. Shifting of goods not delivered after free storage period to an unclaimed area. Lifting on or lifting off and stuffing/un-stuffing of container by consignee or shipper at the container yard. Transfer of containers between port and inland container yard. Supply of fresh water for vessels at berth. Supply of electricity including connecting and disconnecting reefers and reefer monitoring services. Moving a container or loose cargo from vessel to the container yard or warehouse for storage and vice-versa.

3. 4. 5.

2.

6. 7. 8.

3.

4.

9.

5.

10. Extra movement of containers within the storage area for the purpose of sorting, shifting, and stacking and storage of empty containers. 11. Handling of cargoes outside normal working hours.

6.

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Langkawi port Introduction. In 1987, Langkawi was declared as one of duty-free place. This declaration has help Langkawi to lead into tremendous change and rapid development. To fulfil the development of Langkawi itself, the need of transportation infrastructure increases. At that time, the existing port at TelukEwa does not enough to support the increasing volume of cargo. A new port was developed in TanjungLembung in 1996 in order to increase the capacity of Langkawi port to sustain the increasing amount of trading business. This responsibility of this port development was put on the Langkawi Development Authority or LADA. Management. To synchronize the management of these two port in Langkawi, collaboration of Langkawi Development Authority (LADA, Amanah Saham Anak Langkawi (ASAL) and DR Group Holding Sdn. Bhd., has set up the Lanagkawi Port Sdn. Bhd in 16 June 1997. This company is function to manage and administrator the Teluk Lembung port. This company was given concession to supervise the port by the government agency. The company started to operate on 15 November 1997. Management organisation of Langkawi Port Sdn. Bhd. is as below: 1. 2. 3. 4. General Manager Senior Financial Executive Operation Executive Administration Executive Shelter: Fair

Langkawi Development Authority (LADA) was established by the Malaysia Federal Government to plan, promote and implement the development in Langkawi Island. It was officially established on 15 March 1990 under the Government Authority Act 1990 (Act 423) and was operated under the Ministry of Finance. The main objectives of LADA are: To lead socio-economic development, infrastructure and tourism development. To provide investment opportunity to develop economic and tourism sectors. To encourage community participation in socio economic activities and culture. To promote Langkawi as tourist destination internationally.

Management organisation is essential for a port in order to ensure the flow of the business been monitored by responsible personnel. These personnel will be a reference if there any problems occur at the port. General Manager is a person that nominated by the Board of Director to manage the management of the port.

Some details of Port Langkawi are: Location of water: Strait of Malacca Anchorage depth: 9.4 m -10 m Cargo pier depth: 7.1m 9.1m Oil terminal Depth: 7.1m 9.1m Harbour size: Very small scale Harbour type: Open Roadstead Port maximum size: 500 ft in length

Safety policy. Port safety environment has become major issue in shipping business. The Langkawi port has stated certain policies that implement the safe working environment. The safety environment policy is a guide for the personnel at the port to always practice the safe act at the port. Some of policies that implement at the port are: To inculcate a safe working culture through on-going education, supervision, instruction and training on safe working procedures without any harmful risk on health with the commitment to zero accident To provide and implement action plan to enable activities be carried out in safe and healthy environment

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To ensure all port users, contractors and tenants do provide and implement health and safety working precautions in line with this policy To investigate all accidents and dangerous incidents and take further actions to make sure such incidents do not reoccur renting the space for the purpose of sorting, checking, re-bagging, strapping of cargo, stuffing or un-stuffing of containers etc. At port Langkawi there also service that involves transferring the containers between port and inland container yard. Another facility that present at the port is fresh water for vessels at berth. This will help to attract merchant ship to harbour and using the facilities at the port Langkawi. Vessel at the port is also been supply of electricity including connecting and disconnecting reefers and reefer monitoring services. Crane facilities at the port enable the vessel to shift it cargo to the container yard or warehouse for storage and vice-versa easily.

Facilities and service. At port there are certain machinery and facilities that supposed to present in order to assist in cargo handling process. At Langkawi port, the facilities that present are 1 unit of warehouse with 2 unit of cold room serve as the storage place of port, roll-on roll off system for vehicle handling irrespective of sea tidal, mooring, stevedoring, wharf handling, crane equipment, fresh water supply for ship resupplying, weighbridge, and administrative office space

Port service charges. Each services provide at the port Langkawi have its own tariff. Table below shows the tariff of port Langkawi service charges.
Table 16: Port charges
No. 1 2 3 4 5 6 Type of services General charge (discharge of general cargo) Harbour fees (>150 m LOA) Pilotage dues (>150 m LOA) Towage dues (>150 m LOA) Berth occupy charge (>150 m LOA) Water supply General cargo berth (dry bulk )cargo Mooring services (121 150 m LOA) Indirect charges (general cargo) Wharf handling charge (dry bulk cargo) Long storage rent Security service Charges RM 1.30 per tonne RM 6.70 per metre RM 1.80 per hour RM 1.80 per metre RM 1.10 per metre per hour RM 30 for first 10,000 litres and RM 3 for each 1000 litres after RM 1 per tonne RM 70 per operation RM 0.40 per tonne RM 0.55 per tonne RM 4 per unit/per hour RM 25 per person per hour

Figure 7: Roll-on roll-off facilities

7 8 9 10 11 12

Malacca Port Introduction. There is several general information regarding Malacca Port that situated PelabuhanTanjungBruas, Tanjung Kling that are: Port type: Pier, Jetty or Wharf Langkawi Port is providing service of short and longterm storage of cargoes. They is getting income from Port size scale: small

Figure 8: Langkawi port layout

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Location of water: Strait of Malacca Anchorage depth: 4.9 m -6.1 m Cargo pier depth: 3.4 m 4.6 m Oil terminal Depth: 7.1m 9.1m Harbour size: Very small scale Harbour type: River natural Port maximum size: 500 ft in length Shelter: Good Penang Port Introduction. Penang port management is under responsibility of Penang Port Sdn. Bhd. (PPSB) that was incorporated on 7 December 1993. The company is fully owned by the Ministry of Finance. Penang Port Sdn. Bhd. is licensed to operate and manage the port activities and ferry service. The company is also responsible for the development and survivability of the Penang port. The company vision is to be the premier port and having a logistic network management in Asia. The nature of PPSB business is port operation which means it giving service and facilities toward vessel at Penang Port. Management. The management of Penang Port Sdn. Bhd. can be divided into two sections which are Board of Directors and Management Team. From this organisational flow chart it can be conclude that Penang port is a large scale business and deal with global trading business. It requires large organisational team to manage the huge scale of business and to ensure the management of port consistent and smooth. Penang Port Sdn. Bhd. Board of Directors are consisting of: Malacca Port equip with a warehousing facilities with area of storage of 3000 square metre. Another facility is liquid tank farm with capacity of storage of 6500 Chairman Chief of Executive Officer Company Secretary Board of Director m/tonne. At Malacca port there also, private own space with 24722 square metre area. These facilities are rental to the ship or vessel which harbour at the port. This is one of the sources of income for the port which also ensure the survival of the port. The facility and service can attract international and local to do trading service at the port and act as medium for sea and inland transportation.

Up until 2 November 1992, the Malacca Port was managed by Klang Port Authority that was one of the government agencies. Following the policy stated by Malaysia government to imply privatization of company and agency in various Governments owned, the Malacca Port facilities and services were privatised to Syarikat Perkhidmatan Pelabuhan Gabungan Sdn Bhd in 1992. Management. Management organisation of Syarikat Perkhidmatan Pelabuhan Gabungan Sdn Bhd is as below: 1. 2. 3. 4. General Manager Senior Financial Executive Operation Executive Administration Executive

Facilities and service.The berthing facility in Malacca Port located at Tanjung Beruas. Some of the berthing facilities at Port Malaccas details are: Berth: T-shape Length: 170 m Depth: 9 m Vessel maximum size: 10000 DWT

While the Management Team (Strategic Business Units) consisting of: Chief Operating Officer

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General Manger of Container General Manager of Cargo General Manager of Marine General Manager of Development and Logistics General Manager of Technical South port is the oldest port among three of them. It is administrated by Malayan Railways Administration since the railway line from Kuala Lumpur is terminated at South Port. Even is being the oldest port, South port nowadays being the last port that has the least activity among the port in Port Klang. North port is the largest port in Port Klang and also the largest container port in Malaysia which handle 60% of nations trade. It is administrated by Northport Corporation Berhad. Generally the cost applied in North port is lower than west port.

Facilities and service. To attract vessel to use Penang Port, the facilities and service at the port must fulfil the requirement of cargo handling operation. Several facilities and services that available at the Penang Port are: Berthing - 3 berths with length of 900 meters. - 12 meters approach channel depth. - Land area with capacity of 42 hectares. - 2 approach bridge. Storage - Berth capacity with capacity of 660,000 TEUs per year. - Container yard with capacity of 4,400 TEU ground slots. Equipment / Capacity Per Unit: - 9 gantry cranes. - 32 40 tonnes transfer cranes. - 81 prime movers - 111 20 & 45 feet trailers. - 386 reefer points - 3 900 meters berths.

Port layout
North

port

South port

West port

Figure 9: Port Klang location

Port Klang Introduction. Located in Selangor, Port Klang is the largest port in Malaysia used to known as Port of Swettenham was which commenced in 1880s during British colonization on Malaya. Upon the declaration of independence of Malaya, new Malaysia government establish the Port Swettenham Authority which later being changed into Port Klang Authority. Port Klang comprises of three different port that are North port, West port and South port.
Figure 10: Northport layout

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11. General services 12. One stop center

a)
Figure 11: Westport layout

Container terminal

Table 17:Northport container terminal

Berthing facilities Annual Capacity 5.0mill TEU Number of Berths 12 Total Quay Length Over 3km Depth Alongside 15m Max displacement 120000tonnes Handling equipment Rubber Tyred 54 Gantry Quay Cranes 26 Storage Container Yard (hectares) Ground Slots (TGS) Yard Capacity (TEUs) Reefer Points (units) Import Warehouses Export Warehouses Dangerous Cargo Covered Storage 145 19,319

Straddle Carriers

67

68,506

Figure 12: Southport layout

High Stackers Prime Movers Trailers Front-end Loader

8 15 8 11 2 1

759 28,434 m2 12,245 m2 7,783 m2 48,462 m2

Facilities and services. In order to ensure the maximum port services, Port Klang offering a various type of ports facility to their customer. The management of Port Klang provides these facilities to attract more clients. Generally concluded all the ports in port klang, facilities provided are as follow: 1. 2. 3. 4. 5. 6. 7. 8. 9. Container Conventional Dry bulk Liquid bulk Free commercial zone Dangerous goods Passengers terminal Vehicle terminal Distribution park b)
Annual capacity

Table 18: Westport container terminal

Berthing facilities Number of Berths Total Quay Length Depth Alongside max displacement 13 3700m 16.5m 115,000 tonne Handling Equipment Quay cranes Rubber tyred gantry Prime movers Stackers Refeer points Ground slots 40 106 324 25 1,236 27,268

7.5 million TEU

10. Vessle traffic management system(VTMS)

Break bulk terminal

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1 continuo us unloader 10km conveyer belt

Table 19: Northport breakbulk terminal

Berthing facilities Number of Berths 9 Total Quay Length 1286.2m Depth Alongside - min 3.0m and max -12.5m Mobile Cranes Container Trailers Trailers 4 7 70 Handling equipment Forklifts 47 Storage Transit Sheds Wareho uses Towing Tractors 16 Open Yard 57,8 05 m2 19,8 79 m2 47, 169 m2 nes

d) Liquid terminal
Table 23: Northport Liquid terminal

Max displacement 60000 tonnes

Berthing facilities Number of Berths Total Quay Length Depth Alongside 4 779.42m 11.5m

Table 20: Westport breakbulk terminal Berthing facilities Number of Berths Total Quay Length Depth Alongside max displacement 5 1000m 15m 80,000 tonne

Table 24: Westport liquid terminal

Berthing facilities Number of Berths Total Quay Length Depth Alongside

5 1365m 16.1m

c)

Dry bulk terminal

Table 21: Northport drybulk terminal Berthing facilities Number of Berths Total Quay Length Depth Alongside 2 426.0m 12.0m Storage Warehouses Open Yard 36,623 m2 17,520 m2

West ports pipes are between 250 and 1000 meters long and capable of transferring liquid bulk up to a maximum rate of 6000 tonnes per hour. By the help of loading arm will speed up the connection to vessel within 10 seconds to a minute upon vessel berthing
Table 25: Southport liquid terminal

Berthing facilities no of berth Total Quay length depth alongside max displacement 2 354m 10.6m 40,000tonnes

Table 22: Westport drybulk terminal

Handlin g equipme nt 2 grab unloader 1 grab discharge r

Berthing facilities No. of berth Total Quay length depth max displacement

DB1 2 400 m 15m NA

DB2 1 250m 13.5m 78,000ton

Cement terminal 1 285m 11m 35,000tonnes

e)

Free commercial zone

On 1994, Port Klang was declared as a free commercial zone by the minister of finance. Starting by Northport on 1st April 1993, later on 1996 Westport and on 2004 Southport were also declared as a free commercial

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zone. In this zone only commercial activity are allowed and any manufacturing activity is banned. The activities allowed in the free zone are transshipment, consolidation of cargo for subsequent shipment, regional distribution, trading activities, storage or deferment of duty on import cargo, inspection and sampling, and value-adding such as break-bulking, labeling and etc. In Port Klang, there are two passenger terminals which one is for ferry services and the other one is for cruise vessels. Operated by Port Klang Cruise Centre Sdn. Bhd, the terminal is known as Port Klang Cruise Centre which handles a lot of major cruise line. The terminal is built with enough amenities in order to comfort passenger.

Being declared as a free commercial zone, Port Klang is given special treatment by government in order to attract more foreign investor to Malaysia. One of advantages of using free zone is being duty-free and exemption on sales tax. It means the duty on foreign goods is defer until they leave the free zone into country. Other than that, the importer can store goods while awaiting a favorable market condition. Exhibition and promotion of merchandise can be done to prospective client. Free commercial zone also give greater flexibility compare to normal zone. It insures goods for just their value and ocean freight. Moreover, it allows relabeling goods to match the local standards. In the free zone also, client can salvage or repair damaged goods.

Table 26: Passenger terminal facilities

Berth length length with dolphins depth h)

PKCC berth 1 200m 438m 14m

PKCC berth 2 120m 195m 10m

PKCC berth 3 165m 210m 10m

Vehicle terminal

Other advantage of free commercial zone is the reduction of restriction. After Customs Order 1998, a lot of goods can be brought into the free zone for subsequent re-export without an import permit. The benefits from this scenario are lower cost, less restriction, simple documentation and procedure, paperless transaction, elimination and deferment of duty and lasty is value-adding services.

Vehicle terminal is available at Westport which is a joint venture between Konsortium Perkapalan bhd, Klang Multi Terminal, NYK line and Mitsui OSK line. This terminal is a center that provides services such as pre-shipment and pre-delivery inspection, minor repair and insurance coverage. At this terminal, it can receive up to 40,000 vehicles and also there are facilities provided such as body repair shop, wrapping cover bay and also an accessories fitting bay. i) Distribution park

f)

Dangerous goods

Port Klang offers service in handling dangerous cargo. According to Kelang Port Authority any dangerous cargo that passing through Port Klang must be declared to port authority 48 hours before arrival and it can be done through electronic submission.

In order to maximize the profit margin, Port Klang need for an efficient distribution park or Distripark as Malaysian economy rapidly growing and demanding a smoother flow of goods into or out of the country. Distribution Park is built on each port except for Southport. For Northport Distribution Park it is handled by Northport DistriparkSdn. Bhd and likewise for Westport, it is handled by Westport DistriparkSdn. Bhd. Both disrtriparks offers adequate and sophisticated facilities to their client. j) Vehicle traffic management systems

g)

Passenger terminal

To ensure the navigational safety in port water, Port Klang introduced a system to manage the vessel traffic which is known as Vehicle Traffic Management System (VTMS). The Area Control Centres radar are located on three location which are at Westport ,PulauAngsa

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and Bukit Jugra. This system will provide the information on vessels operating in harbor and also provide accurate information on the vessels location and the density of the traffic.
Table 27: Marine services provided

Rajang port Introduction. The Rajang River flows through the central region of Sarawak and the town of Sibu is an important commercial and financial center. Timber logging & timber-related products industry and other agro-based industries are the main economic activities of the Rajang Basin. There are more than one port available along the riverside of Rajang river. Before 1961, all the ports in Sarawak were administered by government agency which known as Marine Department. This agency is responsible for traffic and movement of ships in and out of ports. While Royal Custom and Excise Department is responsible for custody of cargoes and for construction and maintenance of port facilities is managed by Public works Department. Through the enactment of the Port Authority Ordinance 1961, the Authority came into legal existence on 1st November 1970 but commenced its operation on 17th May 1971. Its establishment represented a positive step towards providing more efficient port services.By the establishment of Port Authority, a better organization and planning achieved faster development through better wharf facilities, more economical and sophisticated modes of cargo handling, and greater convenience in importing and exporting goods.

Vessels Pilot Boats Tug Boats

North port 5 units 4 units

West port 8 units 5 units

k)

Ones stop center

Port Klang create a center to facilitate trade which is known as Ones Stop Center. The functions of this center include consolidating and introducing the best practices for the logistic industry. Other that, this center also facilitates the establishment of port related business in Port Klang and organize dialogues with port users.

Port tariff. Consolidate marine charge. This charge applied upon the following services Pilotage from pilot station / inner anchorage to berth Pilotage from berth to pilot station / inner anchorage Towage operation during berthing &unberthing of vessel

Details of Rajang port. Since Rajang port located far away in land, the route to Rajang port can be divided into two routes:

Table 28: Port Charges Overall Length Not exceeding 80 m Exceeding 80 m but not exceeding 100 m Exceeding 100 m but not exceeding 140 m Exceeding 140 m but not exceeding 200 m Exceeding 200 m but not exceeding 250 m Exceeding 250 m but not exceeding 300 m Exceeding 300 m Rates(RM) 2,000 2,600 3,500 7,000 11,000 12,000 14,000

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both a centre for the export of agricultural products and consumer goods for Sarikei town and its surrounding area

3) Tanjung Manis port TanjungManis Port is located only 30 km from the mouth of the Rajang river with draught of 10 metres. This port provides a safe berthing place for large oceangoing vessel. Its strategic location and landforms thus make TanjungManis into a maingateway for logs and timber trades. The TanjungManis deep anchorage is used mainly for loading logs and timber products and can accommodate about 20 vessels.

Figure 13: Route to rajang ports

Table 29: Route details

4) Sungei Merah Jetty Batang Rajang 112km 2000GRT 61m 4m SungeiMerah is situated on the eastern bank of the Igan River, about 5km downstream from the confluence of the Rajang River. The jetty is about 91km from the mouth of the Paloh River and about 116km from the mouth of the Rajang River. There is one 48.8m long wharf used primarily for the handling of fuel oil in bulk. The wharf is limited to vessels of 75m length and with draughts of 4.6m because of the narrowness of the river. Facilities and services. Pilotage is provided by the Marine Department. Though pilotage is not compulsory, it is advisable for larger vessels to have a pilot on board when navigating the port's approaches. Applications for pilotage should be made 24 hours before a ship's arrival. Ships which require a pilot enroute to Sibu should indicate which approach channel they will be using. Ship can contact the pilot via the 'Hague Plan' and communicate with the shore on berthing information. The labour to handle the cargo in Sibu port is provided by the Authority and there are thirteen 15-men stevedore gangs available to offer such services. In TanjungManis, and Sarikei stevedoring services are contracted out. Rajang Port Authority also provides fresh water to vessels berthed along the wharves at Sibu, TanjungManis, Sarikei and Sungai Merahcentres.

Route Distance Vessel allowed Maximum LOA Maximum Draught

Batang paloh 82km 6000GRT 152.4m 6m

Rajang port can be divided into 4 operation centers that are: 1) sibu port Sibuport is the main operations center out of all Rajang port. It is located 113km from the mouth of the Batang Rajang. The general cargo container berths can accommodate two ships at a time. With the length of 154m per berth, the deckloading specification for live stacking load is 672 lb/sq.ft s. 20 ft. containers can be stacked two-high while 40 ft. containers can be stacked one-high on the 2 wharf deck. The storage facilities at SibuPort comprise four that are transit sheds, dangerous goods shed, an open yard and a container yard.

2) sarikei port Sarikei is located 48km from the mouth of the Rajang River. Equipped with a general cargo or container berth of 146m long, sarikei port can accommodate vessel with displacement up to 3000 tonneswith draughts of 7.6m. The port has two transit sheds. Sarikei serves as

Port tariff

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Table 30: Port charges for container services
Description 1. Reefer Container Electricity Type of container (a) 20' Container (b) 40'Container Rate RM50.00 per day or part thereof RM100.00 per day or part thereof

since there is no need for pilotage through the river. Being situated near the city, it brings great advantages for port development in the future and also it contributes to city development.

Containers 1st Week 20-footer 40- footer 3. Extra Movement 5 10

Charges Per Day or Part Thereof 2nd Week 7.5 15 (a) 20'Container (b) 40'Container 3rd Week 10 20 RM50.00 per movement RM75.00 per movement

Figure 14: Sabahport layout

Services
Table 31: Services provided
Services

Sabah port Introduction. Located in Kota Kinablu, sabah port is known as Sabah Port SdnBhd which is managed by Sabah Port Authority (SPA). The Sabah Ports is a state statutory body established in 1968 by the SPA Enactment 1967 which was repealed and replaced by the SPA Enactment 1981. Under the jurisdiction of the Ministry of Infrastructure Development, The Sabah Ports Authority will act as the regulatory authority that responsible on port activities. They also will ensure the terminal operator who operates the server ports in Sabah with the privatization agreement fully and set standards plus benchmark for port operations comparable with ports in the region. Generally, the Sabah Ports Authority acts as the landlord of all wharves servicing ships on a commonuser basis. All warehouses that serves as transit storage warehouses for goods before loading into the ships in respect of export cargo and before collection by consignees or their agents in the case of import cargo. But all cargo handling and ships operation are carried out by the terminal operator.

pilotage Stevedoring Security Water

Pilotage is not compulsory and it is provided by the Marine Department or pilot from private sector Stevedoring services are provided by the Authority The Authority through the terminal operator provides its own security personnel. Fresh water is available from mains at all the wharves.

Discussion
Based on the information above, there are a lot of criteria that addressed the capability of the particular port. It can be seen that each port possessing different sort of facilities and services that they provide to the customers. It is important for owner of the ship to know the capability and facility of each port before going to that port. The criteria and details that the owner needs to know are consisting of container service, liquid bulk service, dangerous liquid bulk service, edible bulk service, break bulk service, dry bulk service and multipurpose bulk service. But, actually is depending on the type of cargo on the board and from there the owner can know what type of service that is required from the port.

Port layout. Located near kotaKinabalu and facing the open sea, the location of Sabah port is very strategic

Besides, the owner needs to know the duration of time that required to keep waiting before the turn comes. This is very essential because if miss predicted or

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estimated it will cost a lot of losses and probably the goods will not reach to the destination within the time frame. Nevertheless, for the ship that has a problem that needs to be repaired also need to go to port that provides a maintenance service for ship as well. It would make easy for that ship to deliver the goods in the same time the maintenance process is undertaken to the ship.

Here is the comparison of each port that needs to be cleared before it can be selected which one is the most preference port. Based on the figure, the data shown the main comparison between each port and also addressed the advantages and disadvantages for each port to give some knowledge regarding to port services. Once the owner knows the capability of yard, it will be automatically easy for owner to select which port that they will use their services Nevertheless, what can be identified here port that provides various kind of service would be the most popular port to be anchorages. This is very essential because most of the time ship that coming from others country will tend to get service not only one kind of service but more than one service

Criteria Container Service

Port Klang NORTHPORT: No of Berths: 12 Max Disp.: 120000 tonnes Storage: 68,506 TEUs WESTPORT: No of Berth: 13 Quay Length: 3700m Max Disp, : 115,000 tonne Annual Capacity: 7.5 million TEU NORTHPORT: No Of Berth: 4 WESTPORT: No of Berth: 5 SOUTHPORT: No of Berth: 2

Penang Port

Labuan Port Max Capacity: 100,000 TEU Length: 244 m Max Vessel: 16,000 DWT

Kuching Port

Kuantan Port No Berth: 3 Length: 600 m Max DWT: 35,000 Max Displacement: 45,000 tonnes

Bintulu Port No Berth: 2 Length: 450 m Depth: 14 m Max Capacity: 400,000 tonne

Kemaman Port

Johor Port Length: 760 m Cranes: 12 Size of TEU: 1,000,000

Liquid Bulk Service

No Berth: 3 Length: 720 m Max DWT: 40,000 Max Displacement: 53,000

No Berth: 1 Length: 450 m Depth: 14 m Max Capacity: 2.5 m tones

BERTH CRITERIA: Length: 289 m Max Size of Vessel: 150,000 DWT No Pipelines: 50 Loading Arms: 6 No Berths: 3 Storage: 487,000 tons Direct pipeline: 1,500 tons per hour No of Jetty: 4 Max DWT: 32,000 No Wharves: 3 Length: 536 m Mobile shore Cranes: Load/upload 300 tons No Jetty: 4 Max Dwt: 30000

Dangerous Liquid Bulk Service Edible Bulk Service Break Bulk Service

NORTHPORT: Annual Capacity: 5.0 million TEU No of Berth: 9 Max Disp.: 60,000 tonnes Open Yard: 57,805 m^2 Warehouse: 47,169 m^2 WESTPORT: No of Berth: 5 Max Disp: 80,000 tonne NORTHPORT: No of Berth: 2 Warehouses: 36,623 m^2 Open Yard: 17,520 m^2 WESTPORT: No of Berth: 2 Max Disp.: 113,000 tonnes

Dry Bulk Service

No Cranes: 3 Productivity: 1,000 tons/hour No Jetty: 3 Max Dwt: 60000

Multi Purpose Bulk Service

No of Berth: 4 Length: 725 m Max DWT: 35,000 Max Displacement: 45,000

No of Berth: 5 Length: 950 m Depth: 14 m Max Capacity: 4.1 m.tonnes

WHARF CRITERIA: Length: 648 m Depth: 17 m Max Size Vessel: 150,000 DWT Applicable: Various type of cargo, dry bulk, liquid bulk

No Wharves: 5 Length: 1.13 km Covered Storage: 10,600 m^2 Open Storage: 485,623 m^2

General Cargo Terminal

No of Berths: 3 Max Storage: 660,000 TEUs Container Capacity: 4,400 TEU

No of Berth: 3 Max DWT: 160,000 No of Pipeline: 9

No of Berth: 3 Length: 514.5 m Depth: 10.5 m Max Capacity: 2.5 m.tonnes Land Transportation: 220 km from KL, 12 km from Kuantan Airport

Transportation

CONCLUSION Ports are very important in the trading business which is used to facilitate the transport, connect the inland and water transport and then increase the economy of the nation. Certain features of the ports can make one ports to lead the competition such as geographic factor which is located at strategic location, facilities and services provided with the aid of technology and the capacity that they can handle. This paper has review on the many ports in Malaysia and it is found that the Port Klang is located at first place in the leading ports in Malaysia which handle 60 percents of national trade. The reasons why the port Klang become the first because:

Located at strategic place Many services and facilities provided Have a commercial free zone Have a supports from government Have a large area which can handle many cargos and provided many services.