port competition in malaysia

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Port Competition in Malaysia

A. Mustakim

C.K.M. FaizulM. 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 inMalaysia 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 ourresearch, 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 andmake comparison between the ports were included in

the final chapter of this journal.

INTRODUCTION

Water transport has historically underpinnedinternational trade and contributed to the economicgrowth for its country. The water transport is facilitatedby the ports which provide a linking between watertransport and surface transport. For the ports to exist in

between these two different types of transport toprovide the services, are derived from the demand thatdepends on the demand for freight at a destination anddemand for the travel by passengers. Therefore, it canbe said that ports are the chains of services that deliverthe outcome from the goods and movement of thepeople (passengers).

The main function of the ports is to facilitate the largescale movement and delivery of goods. Nowadays,maritime freight transport has grown at a fast rate and

many changes happened over decades. Freight volumeand container have grown along with the global tradeand geographical dispersion of the goods. With theindustrial sector which has evolved rapidly, it hasrendered the ports environment with more competitionbetween ports and more challenging. Many agentsalong the supply chain have engaged in the activitiesand lead to the efficiency in the movement of cargos. In2009, a total of 8 billion tonnes of cargo was loadedonto ships worldwide with the value around $5 trillion.For large volumes of goods and cargo, the ports mustbe able to handle them with a systematic system thatthey created to avoid any difficulty.

According to the United Nations Conference on Tradeand Developments (UNCTAD) 2010 report, theworldwide maritime freight volumes has doubledbetween 1990 and 2009. This showed that the waterfreight sector is growing significantly.

Table 1: development of internationalseaborne trade

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


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of price levels, services standards and degree ofinnovation.

Ports are infrastructure that can be organized in variousways. The ownership of structure of ports is influencedby the characteristics of each individual port, thecustomers it serves and its scales. Based on thesefactors there is no uniform model for structure of theport industry. Below is one of the illustrations of thevalue chain in maritime/port sector.

BACKGROUND

The growth in the industrial sector in Malaysia since1990s has leaded the Malaysia one of the mostimportant nation in the global trade. The phenomenalgrowth in global trade has had a huge impact in thedevelopment of the ports and shipping in Malaysia. In

Malaysia, this has spurred investment and thedevelopment of various infrastructures to supportincreasing trade with the worlds nations. In just a fewdecades, there have been many growths of ports andshipping activities which are recognized as essentialcontributors in facilitating Malaysias trade and provideeconomic growth for the nation.

The ports in Malaysia provide a critical in the tradingand transport and at the same time provide the linkbetween shipping service and the inland transportsystem. Realizing the challenges, many ports have beenputting an effort as to become one of the main ports in

Malaysia. According to Michael E. Porter, there arefive major sectors that build the shipping industrycompetition which consist of potential competitors,suppliers, buyers, and substitute products or services.

Chart 1: Forces that shapes industrycompetition

These factors can be divided into smaller parts whichare:

Services and product competing

Brand identity

Industry concentration

Product different

Diversity of rivals

Technology used

Capability

Political factor

Geographic factor

With the growth of many ports in Malaysia, surely therewill be a competition between them. There are manyfactors which lead the competition between ports inMalaysia. The competition matter because they canappear as the one to possessing the market power whichwill affect the welfare of the peoples. In this journal, thestudy will cover about the ports that arise in Malaysiawith concerns of the competition and the factor thateffect the economic trades at the ports.

PORT COMPETITION

Johor port

Introduction. The Johor Port is situated in PasirGudang, Johor is a modern port equipped with allfacilities to meet the requirements of international levelcargo and ship handling operations. It is also equippedwith a highway communication network system linkedto the whole of Peninsular Malaysia from north tosouth. The ports area of operation has been recognized

as a Free Trade Zone. Thus, the Johor Port functions asa center for increasing the flow of international trade(import, export and transshipment) and encouraging themanufacturing industry in the ports area of operation.According to Wikipedia, The Johor Port canaccommodate 43 million tons of cargo including 1million TEUs of containers. Below is the port layout forJohor port;


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Figure 1: Johor port layout

Facilities and services. Listed below are the services

and facilities provided by Johor port to cater highdemand in logistic businesses;

a) Container service

The wharf is 760 metres in length and equipped with 5Post Panamax Quayside Cranes, 17 transfer cranes, 4reach stackers and 46 prime movers. The container areais 178,000 square metres, with 5,500 slots that canaccommodate 1,000,000 TEUs complete with containerreefers facilities. The terminal is also equipped with arail system network, a computerized trekking system

and warehouse facilities for cargo storage.

Table 2: facilities for container services

Jetty Length Depth Max. DWT

CT1 253m 15m 104 000

CT2 253m 15m 104 000

CT3 253m 15m 104 000

b) Liquid bulk service

There are two, four-wharf jetties for Liquid Bulk CargoTerminals namely the Edible Oil Bulk Terminal and theDangerous Liquid Bulk Terminal.

c) Dangerous liquid bulk service

This terminal is exclusively for handling dangerouscargo comprising chemicals, petroleum and LPGproducts. It is equipped with fire-prevention equipmentand sophisticated safety features. It has a 487,000 tonscapacity storage place, equipped with a direct pipeline.The maximum pipeline productivity is about 1,500 tonsper hour.

Table 3: facilities for liquid bulk


DCJ1 200m 11m 104 000

DCJ2 105m 9m 7 000

DCJ3 405m 13m 120 000

DCJ4 240m 13m 95 000

d) Edible bulk service

Table 4: facilities for edible bulk service


OJT1 215m 11m 32 000

OJT 2 215m 10m 2 660

OJT 3 195m 11m 53 300

OJT 4 130m 10m 2 660

e) Break bulk service

This terminal has 3 wharves, 536 m long, and handlesgeneral cargo. Examples are cargo in drums, palletizecargo, sawn timber and others. It has mobile shorecranes that can load and unload up to 300 tons of cargo.The Break Bulk Terminal in Johor Port has alsoobtained clearance from Landon Metal exchange(LME) to handle non-metal iron cargo.

Table 5: facilities for break bulk service

Jetty Length Depth Max.

DWTLighterage 60m 6m 5 000

W1 110m 6m 20 000

W2 183m 11m 30 000

W3 183m 11m 30 000

f) Dry bulk service


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This terminal is for handling dry bulk cargo such asgrain, wheat, cement and others. Equipped with 3cranes, using a conveyor system, it can channel cargofrom a ship straight into the cargo owners storageplace. The handling productivity is 1,000 tons per hour.Besides facilities provided by the private sector, there isa wide space for 72,000 tons of edible goods and87,000 tons of non-edible goods.

Table 6: facilities for dry bulk services


DWT

W4 192m 13m 60 000

W5 217m 13m 60 000

W6 214m 13m 60 000

g) Multi-purpose bulk service

This terminal is for handling general cargo and bulkcargo goods that do not need conveyors. It has 5wharves, 1.13 kilometres in length, and its storage areacomprises 10,600 square metres of covered storage and485,623 square metres of open storage.

Table 7: facilities for MPS


DWT

W7 195m 13.5m 60 000

W8 195m 13.5m 60 000

W9 195m 13.5m 60 000

W10 195m 13.5m 60 000

W11S 230m 11m 15 000

W11N 120m 5m 10 000

Kemaman port

Introduction. The Port of Kemaman, located on theEast Coast of Peninsular Malaysia, is one of the deepestseaports in Malaysia and acting as the new gateway tothe Asia-Pacific region. According to Wikipedia, it iscapable of handling vessels up to 150,000 DWT andvarious types of cargo ranging from general cargo, drybulk to liquid bulk. The Port of Kemaman is logical

choice of shippers in the Eastern Corridor area. It is thePort which other regional ports within the Asia PacificRim would like to be associated with. In addition, thePort is positioning itself as a regional centre fortranshipment activities as well as cargo consolidationand distribution activities.

Facilities and Services

a) Liquid chemical service

The LCB is a specialized terminal to handle liquidchemical cargo. Its facilities are fully operational tocater the needs of petrochemical industries. The berth is289m long and is capable of accommodating vessels upto 150,000 DWT with a draught of 16.4m. It also has

space available for 50 pipelines and 6 loading arms andis fully equipped with safety features.

Table 8: facilities for liquid chemicalservices

Berth No. of

Berth

Length Draught DWT

LiquidChemicalBerth No.

1

1 240m 11.2m 40 000

LiquidChemical

Berth No.2

1 240m 11.2m 40 000

LiquidChemicalBerth No.

3

1 240m 11.2m 40 000

b) The wharf

The Wharf, with a quay of 648 metres length and depthof 17 metres is one of the deepest seaports in Malaysia.As an all-weather port, it is capable of handling vesselsup to 150,000 DWT and various types of cargo, dry bulk

and liquid bulk. It is also a regional centre fortranshipment activities as well as cargo consolidationand distribution activities.


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Table 9: wharf facilities

Berth No. of

Berth

Length Draught DWT

WestWharf

2 510m 16.5m 150 0

Bintulu port

Introduction. The Bintulu Port is situated in bintulu,Sarawak is a modern port equipped with all facilities tohandle most of operation related to petrochemicalindustry as well as other shipping services. It isstrategically positioned to serve the resource-richSarawak hinterland, Malaysias major LNG hub and thesurrounding Brunei, Indonesia, Philippines and otherEast Asian region. Below is the port layout of bintuluport;

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 thiscould benefit the development of bintulu port.Bintuluports are capable of handling the petrochemicalproduct. Listed below are some of the facilities

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

Table 10: petrochemical services facilities

Capacity

(Mtpa)

Trains

(no)

Start

up

MLNGSATU

8.2 3 1983

MLNGDUA

9.0 3 1996

MLNGTIGA

6.8 2 2003

TOTAL 24 8

Table 11: port facilities

Type of

Berth

No.

of

berth

Lengt

h (m)

Dept

h (m)

DWT

(Tonne

s)

Capacit

y (m

tonnes)

Petrochemical Terminal

2 200 11 30 000 1.8

LPG Jetty 1 492.8 11 51 000 0.7

LNG Jetty 3 450 15 80 000 28.3

b) Container, general, bulk and multi-purpose cargo

Bintulu port has successfully established shipping

connectivity to multipledestinations. Approximately 15shipping lines currently serve Bintulu Port, withfourlines offering direct services to the Far East ports.Main line operators such as Evergreen Marine andHUBline both call at Bintulu Port weekly. The majorport calls that they make include Port Klang (8xweekly), PasirGudang (8x weekly), Singapore(5xweekly), Kota Kinabalu (4x weekly) and Hong Kong(4x weekly). Evergreen is oneof Bintulu Ports maincustomers.

Table 12: facilities for container, general,bulk and MP cargo

Type ofBerth

No.of

berth

Length(m)

Depth(m)

DWT(Tonnes)

Capacity(m

tonnes)

ContainerTerminal

2 450 14 55 000 400 000TEUs

GeneralCargoTerminal

3 514.5 10.5 25 000 2.5

Bulk 1 270 13.3 60 000 0.9


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Terminal

Multi-purposeTerminal

5 950 14 40 000 4.1

Kuantan port

Introduction. Kuantan port is situated atTanjungGelang on the eastern seaboard of PeninsularMalaysia between latitude 03 58' N, longitude 103 26.4'E, some 25 kilometers north of Kuantan, the statecapital of Pahang. To the major sea lanes of theshipping world, Kuantan Port serves primarily thePacific Rim, the Middle East, the Far East, Europe andAsian region. Sailing time from Kuantan Port toSingapore 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, theMediterranean and the west coast of USAapproximately 15 and 18 days respectively.

Kuantan Port is also well-connected by road and rail toother parts of Peninsular Malaysia and by air to majorworld destinations via Kuala Lumpur. Locatedapproximately 220 kilometers away from KualaLumpur, Kuantan Port is about 3 hours by road or 40minutes by air from Kuala Lumpur. Kuantan Airport is12 kilometres to Kuantan town and approximately 38kilometres to the Port. Public taxis are available atKuantan Airport.

Figure 3: Kuantan port layout

Facilities and service. Listed below are theservices and facilities provided by Kuantan port:

Table 13: Port facilities

Kuching port

Introduction. Kuching Port Authority was the first

organized port in the state of Sarawak. It wasestablished in 1961 under the Port AuthoritiesOrdinance 1961. Being situated just outside Kuching,the capital city of Sarawak and the seat of the StateGovernment and administration, it has grown tobecome a premier port of the State served by numerousshipping lines connecting it to the regional hub ports.All its terminals are in close proximity to the industrialestates to facilitate easy cargo movement. Bothterminals have easy access to highway and coastalroutes to all main towns in Sarawak. Kuching PortAuthority is the first Malaysian port authority to haveits Container Handling Management System accorded

the MS ISO 9002 certification. Kuching port has toterminal which is Pending Terminal and SenariTerminal.

Figure 4: Pending Terminal


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Figure 5: Senari Terminal

Service and facilities. The port services and facilitiesprovided by Kuching Port Authority to the port usersare:

Table 14: berthing facilities

Table 15: storage 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 andenjoys 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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Figure 6: Labuan port layout

Service and facilities. LLPM and its related companieshave the necessary experience, know-how, manpowerand equipment to provide the following services atLabuan Liberty Port:

1. Short and long-term storage of cargoes.

2. Rent of space for the purpose of sorting, checking,re-bagging, strapping of cargo, stuffing or un-stuffing of containers etc.

3. Handling of general cargo received, stored anddelivered within storage area.

4. Shifting of goods not delivered after free storageperiod to an unclaimed area.

5. Lifting on or lifting off and stuffing/un-stuffing ofcontainer by consignee or shipper at the container

yard.

6. Transfer of containers between port and inlandcontainer yard.

7. Supply of fresh water for vessels at berth.

8. Supply of electricity including connecting anddisconnecting reefers and reefer monitoringservices.

9. Moving a container or loose cargo from vessel tothe container yard or warehouse for storage andvice-versa.

10. Extra movement of containers within the storagearea for the purpose of sorting, shifting, andstacking and storage of empty containers.

11. Handling of cargoes outside normal working hours.

12. Issuance and renewal of security passes forindividuals 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

4 unit lorries 3MT

15. Management and coordination of haulage, handlingand transportation services.

Port advantages. The port has a cargo handling capacity

of 100,000 TEUs annually. Despite its small size, theport has its own unique strengths compared toneighboring ports:

1. As a duty free port, customs procedures are muchmore relaxed. By using the appropriate import-export customs declaration forms, good can becleared more speedily and without hassle.

2. Being small, it can provide dedicated andspecialized logistics arrangements for speedierhandling. There is usually zero waiting time forberthing and cargo discharging (weatherpermitting). Also, all facilities are located next to

each other thus saving much time, movements andhandling costs.

3. Comparatively, port charges such as storagecharges, container handling fees and others areamong the lowest in Malaysia.

4. Certified as a safe port and operates in accordancewith the International Ship and Port FacilitySecurity Code (ISPS Code).

5. Much room to grow in terms cargo volume,facilities, equipment and services. Various businessopportunities in the logistics sector.

6. The port is capable of providing integrated logisticssolution to those involved in the oil and gas sectorin line with the aspiration of Labuan to become avibrant oil and gas hub.


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Langkawi port

Introduction. In 1987, Langkawi was declared as oneof duty-free place. This declaration has help Langkawito lead into tremendous change and rapid development.

To fulfil the development of Langkawi itself, the needof transportation infrastructure increases. At that time,the existing port at TelukEwa does not enough tosupport the increasing volume of cargo. A new port wasdeveloped in TanjungLembung in 1996 in order toincrease the capacity of Langkawi port to sustain theincreasing amount of trading business. Thisresponsibility of this port development was put on theLangkawi Development Authority or LADA.

Langkawi Development Authority (LADA) was

established by the Malaysia Federal Government toplan, promote and implement the development inLangkawi Island. It was officially established on 15March 1990 under the Government Authority Act 1990(Act 423) and was operated under the Ministry ofFinance. 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 socioeconomic activities and culture.

To promote Langkawi as tourist destination

internationally.

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

Shelter: Fair

Management. To synchronize the management of thesetwo port in Langkawi, collaboration of LangkawiDevelopment Authority (LADA, Amanah Saham AnakLangkawi (ASAL) and DR Group Holding Sdn. Bhd.,has set up the Lanagkawi Port Sdn. Bhd in 16 June1997. This company is function to manage andadministrator the Teluk Lembung port. This companywas given concession to supervise the port by thegovernment agency. The company started to operate on15 November 1997.

Management organisation of Langkawi Port Sdn. Bhd.is as below:

1. General Manager

2. Senior Financial Executive

3. Operation Executive

4. Administration Executive

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

Safety policy. Port safety environment has becomemajor issue in shipping business. The Langkawi porthas stated certain policies that implement the safeworking environment. The safety environment policy isa guide for the personnel at the port to always practicethe safe act at the port. Some of policies that implementat the port are:

To inculcate a safe working culture through

on-going education, supervision, instruction andtraining on safe working procedures without any

harmful risk on health with the commitment to zeroaccident

To provide and implement action plan to

enable activities be carried out in safe and healthyenvironment


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To ensure all port users, contractors and

tenants do provide and implement health and safetyworking 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

Facilities and service. At port there are certainmachinery and facilities that supposed to present inorder to assist in cargo handling process. At Langkawiport, the facilities that present are 1 unit of warehousewith 2 unit of cold room serve as the storage place ofport, roll-on roll off system for vehicle handlingirrespective of sea tidal, mooring, stevedoring, wharfhandling, crane equipment, fresh water supply for shipresupplying, weighbridge, and administrative officespace

Figure 7: Roll-on roll-off facilities

Figure 8: Langkawi port layout

Langkawi Port is providing service of short and long-term storage of cargoes. They is getting income from

renting the space for the purpose of sorting, checking,re-bagging, strapping of cargo, stuffing or un-stuffingof containers etc. At port Langkawi there also servicethat involves transferring the containers between portand inland container yard. Another facility that presentat the port is fresh water for vessels at berth. This willhelp to attract merchant ship to harbour and using thefacilities at the port Langkawi. Vessel at the port is alsobeen supply of electricity including connecting anddisconnecting reefers and reefer monitoring services.Crane facilities at the port enable the vessel to shift itcargo to the container yard or warehouse for storageand vice-versa easily.

Port service charges. Each services provide at the port

Langkawi have its own tariff. Table below shows thetariff of port Langkawi service charges.

Table 16: Port charges

No. Type of services Charges

1 General charge (discharge of general cargo)

RM 1.30 per tonne

2 Harbour fees (>150 m LOA) RM 6.70 per metre

3 Pilotage dues (>150 m LOA) RM 1.80 per hour

4 Towage dues (>150 m LOA) RM 1.80 per metre

5 Berth occupy charge (>150m LOA)

RM 1.10 per metre per hour

6 Water supply RM 30 for first 10,000 litresand RM 3 for each 1000

litres after7 General cargo berth (dry

bulk )cargoRM 1 per tonne

8 Mooring services (121 150m LOA)

RM 70 per operation

9 Indirect charges (generalcargo)

RM 0.40 per tonne

10 Wharf handling charge (drybulk cargo)

RM 0.55 per tonne

11 Long storage rent RM 4 per unit/per hour

12 Security service RM 25 per person per hour

Malacca Port

Introduction. There is several general informationregarding Malacca Port that situatedPelabuhanTanjungBruas, Tanjung Kling that are:

Port type: Pier, Jetty or Wharf

Port size scale: small


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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

Up until 2 November 1992, the Malacca Port wasmanaged by Klang Port Authority that was one of thegovernment agencies. Following the policy stated byMalaysia government to imply privatization of

company and agency in various Governments owned,the Malacca Port facilities and services were privatisedto Syarikat Perkhidmatan Pelabuhan Gabungan SdnBhd in 1992.

Management. Management organisation ofSyarikatPerkhidmatan Pelabuhan Gabungan Sdn Bhd is asbelow:

1. General Manager

2. Senior Financial Executive

3. Operation Executive

4. Administration Executive

Facilities and service.The berthing facility in MalaccaPort located at Tanjung Beruas. Some of the berthingfacilities at Port Malaccas details are:

Berth: T-shape

Length: 170 m

Depth: 9 m

Vessel maximum size: 10000 DWT

Malacca Port equip with a warehousing facilities witharea of storage of 3000 square metre. Another facility isliquid tank farm with capacity of storage of 6500

m/tonne. At Malacca port there also, private own spacewith 24722 square metre area.

These facilities are rental to the ship or vessel whichharbour at the port. This is one of the sources of incomefor the port which also ensure the survival of the port.The facility and service can attract international andlocal to do trading service at the port and act as mediumfor sea and inland transportation.

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 portactivities 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 Boardof Directors and Management Team. From this

organisational flow chart it can be conclude that Penangport is a large scale business and deal with globaltrading business. It requires large organisational team tomanage the huge scale of business and to ensure themanagement of port consistent and smooth.

Penang Port Sdn. Bhd. Board of Directors areconsisting of:

Chairman

Chief of Executive Officer

Company Secretary

Board of Director

While the Management Team (Strategic BusinessUnits) 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

Facilities and service. To attract vessel to use PenangPort, the facilities and service at the port must fulfil therequirement of cargo handling operation. Severalfacilities and services that available at the Penang Portare:

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 peryear.- Container yard with capacity of 4,400 TEUground 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 Klang

Introduction. Located in Selangor, Port Klang is thelargest port in Malaysia used to known as Port ofSwettenham was which commenced in 1880s during

British colonization on Malaya. Upon the declaration ofindependence of Malaya, new Malaysia governmentestablish the Port Swettenham Authority which laterbeing changed into Port Klang Authority. Port Klangcomprises of three different port that are North port,West port and South port.

South port is the oldest port among three of them. It isadministrated by Malayan Railways Administrationsince the railway line from Kuala Lumpur is terminatedat South Port. Even is being the oldest port, South portnowadays being the last port that has the least activityamong the port in Port Klang.

North port is the largest port in Port Klang and also thelargest container port in Malaysia which handle 60% ofnations trade. It is administrated by NorthportCorporation Berhad. Generally the cost applied inNorth port is lower than west port.

Port layout

Figure 9: Port Klang location

Figure 10: Northport layout

North

port

West

port

South

port


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Figure 11: Westport layout

Figure 12: Southport layout

Facilities and services. In order to ensure the maximumport services, Port Klang offering a various type ofports facility to their customer. The management ofPort Klang provides these facilities to attract more

clients. Generally concluded all the ports in port klang,facilities provided are as follow:

1. Container

2. Conventional

3. Dry bulk

4. Liquid bulk

5. Free commercial zone

6. Dangerous goods

7. Passengers terminal

8. Vehicle terminal

9. Distribution park

10. Vessle traffic management system(VTMS)

11. General services

12. One stop center

a) Container terminal

Table 17:Northport container terminal

Berthing

facilities

Handling

equipmentStorage

Annual Capacity5.0mill TEU

RubberTyredGantry

54ContainerYard(hectares)

145

Number ofBerths 12

Quay Cranes 26Ground Slots(TGS)

19,319

Total Quay

Length Over 3kmDepth Alongside15mMaxdisplacement120000tonnes

StraddleCarriers

67YardCapacity(TEUs)

68,506

HighStackers

8ReeferPoints (units)

759

PrimeMovers

158

ImportWarehouses

28,434m2

Trailers112

ExportWarehouses

12,245m2

Front-endLoader

1DangerousCargo

7,783m2

CoveredStorage

48,462m2

Table 18: Westport container terminal

Berthing facilities Handling Equipment

Number of Berths 13Quaycranes

40

Total Quay Length 3700m

Rubbertyredgantry

106

Depth Alongside 16.5mPrimemovers

324

max displacement 115,000 tonneStackers 25

Annual capacity 7.5 million TEU

Refeerpoints

1,236

Groundslots

27,268

b) Break bulk terminal


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Table 19: Northport breakbulk terminal

Berthing facilitiesHandling

equipmentStorage

Number of Berths 9 Forklifts 47Transit

Sheds

19,879m2

Total Quay Length -1286.2m

TowingTractors

16

Warehouses

47,169m2

Depth Alongside - min 3.0mand max -12.5m

OpenYard

57,805m2

Max displacement 60000tonnes

MobileCranes

4

ContainerTrailers

7

Trailers 70

Table 20: Westport breakbulk terminal

Berthing facilities

Number of Berths 5


Depth Alongside 15m

max displacement 80,000 tonne

c) Dry bulk terminal

Table 21: Northport drybulk terminal

Berthing facilities Storage

Number of Berths 2 Warehouses36,623m2

Total Quay Length 426.0m Open Yard17,520m2

Depth Alongside 12.0m

Table 22: Westport drybulk terminal

Berthing

facilities DB1 DB2

Cement

terminal

Handlin

g

equipme

nt

No. of berth 2 1 12 grabunloader

1 grabdischarger

Total Quaylength

400m 250m 285m

depth 15m 13.5m 11m

maxdisplacement

NA 78,000ton 35,000tonnes

nes

1continuousunloader

10kmconveyer

belt

d) Liquid terminal

Table 23: Northport Liquid terminal

Berthing facilities

Number of Berths 4

Total Quay Length 779.42m


Table 24: Westport liquid terminal

Berthing facilities

Number of Berths 5



West ports pipes are between 250 and 1000 meterslong and capable of transferring liquid bulk up to amaximum rate of 6000 tonnes per hour. By the help of

loading arm will speed up the connection to vesselwithin 10 seconds to a minute upon vessel berthing

Table 25: Southport liquid terminal

Berthing facilities

no of berth 2

Total Quay length 354m

depth alongside 10.6m

max displacement 40,000tonnes

e) Free commercial zone

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


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zone. In this zone only commercial activity are allowedand any manufacturing activity is banned. The activitiesallowed in the free zone are transshipment,consolidation of cargo for subsequent shipment,regional distribution, trading activities, storage ordeferment of duty on import cargo, inspection andsampling, and value-adding such as break-bulking,labeling and etc.

Being declared as a free commercial zone, Port Klang isgiven special treatment by government in order toattract more foreign investor to Malaysia. One ofadvantages of using free zone is being duty-free andexemption on sales tax. It means the duty on foreigngoods is defer until they leave the free zone intocountry. Other than that, the importer can store goodswhile awaiting a favorable market condition. Exhibitionand promotion of merchandise can be done to

prospective client.

Free commercial zone also give greater flexibilitycompare to normal zone. It insures goods for just theirvalue and ocean freight. Moreover, it allows relabelinggoods to match the local standards. In the free zonealso, client can salvage or repair damaged goods.

Other advantage of free commercial zone is thereduction of restriction. After Customs Order 1998, alot of goods can be brought into the free zone forsubsequent re-export without an import permit. Thebenefits from this scenario are lower cost, lessrestriction, simple documentation and procedure,paperless transaction, elimination and deferment ofduty and lasty is value-adding services.

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 declaredto port authority 48 hours before arrival and it can bedone through electronic submission.

g) Passenger terminal

In Port Klang, there are two passenger terminals whichone is for ferry services and the other one is for cruisevessels. Operated by Port Klang Cruise Centre Sdn.Bhd, the terminal is known as Port Klang Cruise Centrewhich handles a lot of major cruise line. The terminal isbuilt with enough amenities in order to comfortpassenger.

Table 26: Passenger terminal facilities

Berth

PKCC

berth 1

PKCC

berth 2

PKCC

berth 3

length 200m 120m 165m

length withdolphins 438m 195m 210m

depth 14m 10m 10m

h) Vehicle terminal

Vehicle terminal is available at Westport which is ajoint venture between Konsortium Perkapalan bhd,Klang Multi Terminal, NYK line and Mitsui OSK line.This terminal is a center that provides services such aspre-shipment and pre-delivery inspection, minor repairand insurance coverage. At this terminal, it can receiveup to 40,000 vehicles and also there are facilitiesprovided such as body repair shop, wrapping cover bay

and also an accessories fitting bay.

i) Distribution park

In order to maximize the profit margin, Port Klang needfor an efficient distribution park or Distripark asMalaysian economy rapidly growing and demanding asmoother flow of goods into or out of the country.Distribution Park is built on each port except forSouthport. For Northport Distribution Park it is handledby Northport DistriparkSdn. Bhd and likewise forWestport, it is handled by Westport DistriparkSdn. Bhd.Both disrtriparks offers adequate and sophisticatedfacilities to their client.

j) Vehicle traffic management systems

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


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and Bukit Jugra. This system will provide theinformation on vessels operating in harbor and alsoprovide accurate information on the vessels locationand the density of the traffic.

Table 27: Marine services provided

Vessels North port West port

Pilot Boats 5 units 8 units

Tug Boats 4 units 5 units

k) Ones stop center

Port Klang create a center to facilitate trade which isknown as Ones Stop Center. The functions of this

center include consolidating and introducing the bestpractices for the logistic industry. Other that, this centeralso facilitates the establishment of port relatedbusiness in Port Klang and organize dialogues with portusers.

Port tariff. Consolidate marine charge. This chargeapplied upon the following services

Pilotage from pilot station / inner anchorage to

berth

Pilotage from berth to pilot station / inneranchorage

Towage operation during berthing &unberthing of

vessel

Table 28: Port Charges

Overall Length Rates(RM)

Not exceeding 80 m 2,000

Exceeding 80 m but not exceeding 100m

2,600

Exceeding 100 m but not exceeding

140 m3,500

Exceeding 140 m but not exceeding200 m

7,000


11,000


12,000

Exceeding 300 m 14,000

Rajang port

Introduction. The Rajang River flows through thecentral region of Sarawak and the town of Sibu is animportant commercial and financial center. Timberlogging & timber-related products industry and otheragro-based industries are the main economic activitiesof the Rajang Basin. There are more than one portavailable along the riverside of Rajang river.

Before 1961, all the ports in Sarawak wereadministered by government agency which known asMarine Department. This agency is responsible fortraffic and movement of ships in and out of ports.While Royal Custom and Excise Department isresponsible for custody of cargoes and for constructionand maintenance of port facilities is managed by Public

works Department.

Through the enactment of the Port Authority Ordinance1961, the Authority came into legal existence on 1stNovember 1970 but commenced its operation on 17thMay 1971. Its establishment represented a positive steptowards providing more efficient port services.By theestablishment of Port Authority, a better organizationand planning achieved faster development throughbetter wharf facilities, more economical andsophisticated modes of cargo handling, and greaterconvenience in importing and exporting goods.

Details of Rajang port. Since Rajang port located faraway in land, the route to Rajang port can be dividedinto two routes:


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Figure 13: Route to rajang ports

Table 29: Route details

Route Batang paloh Batang Rajang

Distance 82km 112km

Vessel allowed 6000GRT 2000GRT

Maximum LOA 152.4m 61m

Maximum

Draught

6m 4m

Rajang port can be divided into 4 operation centers thatare:

1) sibu port

Sibuport is the main operations center out of all Rajangport. It is located 113km from the mouth of the BatangRajang. The general cargo container berths canaccommodate two ships at a time. With the length of154m per berth, the deckloading specification for livestacking load is 672 lb/sq.ft s. 20 ft. containers can bestacked two-high while 40 ft. containers can be stackedone-high on the 2 wharf deck. The storage facilities atSibuPort comprise four that are transit sheds, dangerousgoods shed, an open yard and a container yard.

2) sarikei port

Sarikei is located 48km from the mouth of the RajangRiver. Equipped with a general cargo or container berthof 146m long, sarikei port can accommodate vesselwith displacement up to 3000 tonneswith draughts of7.6m. The port has two transit sheds. Sarikei serves as

both a centre for the export of agricultural products andconsumer goods for Sarikei town and its surroundingarea

3) Tanjung Manis port

TanjungManis Port is located only 30 km from themouth of the Rajang river with draught of 10 metres.This port provides a safe berthing place for large ocean-going vessel. Its strategic location and landforms thusmake TanjungManis into a maingateway for logs andtimber trades. The TanjungManis deep anchorage isused mainly for loading logs and timber products andcan accommodate about 20 vessels.

4) Sungei Merah Jetty

SungeiMerah is situated on the eastern bank of the IganRiver, about 5km downstream from the confluence ofthe Rajang River. The jetty is about 91km from themouth of the Paloh River and about 116km from themouth of the Rajang River. There is one 48.8m longwharf used primarily for the handling of fuel oil inbulk. The wharf is limited to vessels of 75m length andwith draughts of 4.6m because of the narrowness of theriver.

Facilities and services. Pilotage is provided by theMarine Department. Though pilotage is notcompulsory, 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 hoursbefore a ship's arrival. Ships which require a pilotenroute to Sibu should indicate which approach channelthey will be using. Ship can contact the pilot via the'Hague Plan' and communicate with the shore onberthing information.

The labour to handle the cargo in Sibu port is providedby the Authority and there are thirteen 15-menstevedore gangs available to offer such services. InTanjungManis, and Sarikei stevedoring services arecontracted out. Rajang Port Authority also provides

fresh water to vessels berthed along the wharves atSibu, TanjungManis, Sarikei and Sungai Merahcentres.

Port tariff


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Table 30: Port charges for containerservices

Description Type of container Rate

1. Reefer ContainerElectricity

(a) 20' Container

RM50.00 perday or partthereof

(b) 40'Container RM100.00 perday or partthereof

Containers Charges Per Day or Part Thereof

1stWeek

2nd Week 3rd Week

20-footer 5 7.5 10

40- footer 10 15 20

3. Extra Movement (a) 20'Container RM50.00 per movement

(b) 40'Container RM75.00 permovement

Sabah port

Introduction. Located in Kota Kinablu, sabah port isknown as Sabah Port SdnBhd which is managed bySabah Port Authority (SPA). The Sabah Ports is a statestatutory body established in 1968 by the SPAEnactment 1967 which was repealed and replaced bythe SPA Enactment 1981. Under the jurisdiction of theMinistry of Infrastructure Development, The SabahPorts Authority will act as the regulatory authority thatresponsible on port activities. They also will ensure theterminal operator who operates the server ports inSabah with the privatization agreement fully and setstandards plus benchmark for port operationscomparable with ports in the region.

Generally, the Sabah Ports Authority acts as thelandlord of all wharves servicing ships on a common-user basis. All warehouses that serves as transit storagewarehouses for goods before loading into the ships inrespect 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 carriedout by the terminal operator.

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

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

Figure 14: Sabahport layout

Services

Table 31: Services provided

Services

pilotagePilotage is not compulsory and it is provided by theMarine Department or pilot from private sector

Stevedoring Stevedoring services are provided by the Authority

SecurityThe Authority through the terminal operator providesits own security personnel.

Water Fresh water is available from mains at all the wharves.

Discussion

Based on the information above, there are a lot ofcriteria that addressed the capability of the particularport. It can be seen that each port possessing differentsort of facilities and services that they provide to thecustomers. It is important for owner of the ship to knowthe capability and facility of each port before going tothat port. The criteria and details that the owner needsto know are consisting of container service, liquid bulkservice, dangerous liquid bulk service, edible bulkservice, break bulk service, dry bulk service andmultipurpose bulk service. But, actually is dependingon the type of cargo on the board and from there the

owner can know what type of service that is requiredfrom the port.

Besides, the owner needs to know the duration of timethat 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 thegoods will not reach to the destination within the timeframe. Nevertheless, for the ship that has a problem thatneeds to be repaired also need to go to port thatprovides a maintenance service for ship as well. Itwould make easy for that ship to deliver the goods inthe same time the maintenance process is undertaken tothe ship.

Here is the comparison of each port that needs to becleared before it can be selected which one is the mostpreference port. Based on the figure, the data shown themain comparison between each port and also addressedthe advantages and disadvantages for each port to givesome knowledge regarding to port services. Once theowner knows the capability of yard, it will beautomatically easy for owner to select which port thatthey will use their services

Nevertheless, what can be identified here port thatprovides various kind of service would be the mostpopular port to be anchorages. This is very essentialbecause most of the time ship that coming from otherscountry will tend to get service not only one kind ofservice but more than one service


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Criteria Port Klang Penang Port Labuan Port Kuching Port Kuantan Port Bintulu Port Kemaman Port Johor Port

ContainerService

NORTHPORT:

No of Berths: 12Max Disp.: 120000tonnesStorage: 68,506 TEUsWESTPORT:

No of Berth: 13Quay Length: 3700mMax Disp, : 115,000tonneAnnual Capacity: 7.5million TEU

Max Capacity:100,000 TEULength: 244 mMax Vessel:16,000 DWT

No Berth: 3Length: 600 mMax DWT: 35,000Max Displacement:

45,000 tonnes

No Berth: 2Length: 450 mDepth: 14 mMax Capacity:400,000 tonne

Length: 760 mCranes: 12Size of TEU:1,000,000

Liquid Bulk

Service

NORTHPORT:

No Of Berth: 4WESTPORT:No of Berth: 5SOUTHPORT:

No of Berth: 2

No Berth: 3

Length: 720 mMax DWT: 40,000Max Displacement:

53,000

No Berth:

1Length: 450 mDepth: 14 mMax

Capacity: 2.5m tones

BERTH

CRITERIA:Length: 289 mMax Size of

Vessel: 150,000DWTNo Pipelines: 50Loading Arms: 6No Berths: 3

DangerousLiquid BulkService

Storage: 487,000 tonsDirect pipeline:1,500 tons per hour

Edible BulkService

No of Jetty: 4Max DWT: 32,000

Break BulkService

NORTHPORT:

Annual Capacity: 5.0million TEUNo of Berth: 9Max Disp.: 60,000tonnesOpen Yard: 57,805m^2Warehouse: 47,169

m^2

WESTPORT:

No of Berth: 5Max Disp: 80,000tonne

No Wharves: 3Length: 536 mMobile shore

Cranes: Load/upload300 tonsNo Jetty: 4Max Dwt: 30000

Dry BulkService

NORTHPORT:

No of Berth: 2Warehouses: 36,623m^2Open Yard: 17,520m^2WESTPORT:

No of Berth: 2Max Disp.: 113,000tonnes

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


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Multi PurposeBulk Service

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

No of Berth: 5Length: 950 mDepth: 14 mMax Capacity:4.1 m.tonnes

WHARF

CRITERIA:

Length: 648 mDepth: 17 mMax Size Vessel:150,000 DWTApplicable:Various type ofcargo, dry bulk,liquid bulk

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

General CargoTerminal

No of

Berths: 3Max

Storage:

660,000TEUsContainer

Capacity:4,400 TEU

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

Pipeline: 9

No of Berth: 3Length: 514.5mDepth: 10.5 mMax

Capacity: 2.5m.tonnes

Transportation Land Transportation:220 km from KL, 12km from KuantanAirport


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CONCLUSION

Ports are very important in the trading business whichis used to facilitate the transport, connect the inland andwater transport and then increase the economy of thenation. Certain features of the ports can make one portsto lead the competition such as geographic factor whichis located at strategic location, facilities and servicesprovided with the aid of technology and the capacitythat they can handle. This paper has review on themany ports in Malaysia and it is found that the PortKlang is located at first place in the leading ports inMalaysia which handle 60 percents of national trade.The reasons why the port Klang become the firstbecause:

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.

port competition in malaysia

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