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Penang Port to be Pillar of Northern Corridor
September 14, 2007
MALAYSIA’S oldest port, Penang Port, which has been identified to play the role of lead port in the Northern Corridor Economic Region (NCER), intends to enhance its existing competencies as it leverages on intra-Asian trade as its pillar of strength.
Intra-Asian trade currently forms a substantial part of the port’s business, with over 35 per cent direct calls mainly to various regional destinations.
Penang Port Sdn Bhd (PPSB) managing director Datuk Ahmad Ibnihajar said larger vessels of up to 6,000 TEUs (20-foot equivalent units) are likely to be deployed along this trade route.
“In anticipation of this, PPSB is upgrading its facilities and capabilities in line with the above strategy and shipping trends,” he said.
PPSB is planning the third-phase of the Northern Butterworth Container Terminal (NBCT), at a cost of RM1 billion and to be carried out over the next five years. The project will include:
* the construction of an additional 600m wharve extension at the north end to the existing 900m container wharves;
* construction of a new stacking area for export containers behind the new 600m and existing 900m wharves;
* construction of a new barging centre at the south end of the existing 900m wharves;
* procurement of seven Super Post Panamax cranes and other handling equipment; and
* dredging of the North Channel to 14.5m.
Strategically located along the northwest coast of the peninsula, Penang Port serves some of the busiest trade routes in the region and links Malaysia to more than 200 ports worldwide.
Up to June this year, PPSB handled 445,138 TEUs, and this reflects an increase of 12 per cent compared with 398,304 TEUs handled during the corresponding period in 2006.
“Improved global and domestic economic activities in PPSB’s hinterland have contributed to the growth in throughput handled by PPSB,” said Ahmad.
The port operator has forecast to handle 900,000 TEUs this year, based on its continuous efforts to improve services and strategic marketing, and supported by the present global and domestic economic growth, which it expects will be sustained till the end of the year.
Last year, PPSB recorded an operating revenue of RM225 million with a net profit of RM13 million.
It is forecasting RM280 million operating revenue this year and a RM26 million net profit.
Ahmad said that PPSB’s ferry operation has continually incurred losses. In 2006, the operating loss was RM12 million.
Under the Penang Port Commission Act 1955, the Penang Port Commission (PPC) was established in 1956.
PPC was responsible for providing and maintaining port facilities and ferry services as well as promoting the upgrading, development and use of the port.
In January 1994, port and ferry operations were handed over to PPSB, leaving PPC to focus on the strategic development of the Port of Penang.
On Tanjung City Marina, which was completed in 2005 and managed by PPSB, Ahmad said its operations are not expected to have a significant impact on PPSB’s overall financial performance.
“While we expect the marina operation to incur minimal losses initially, we are projecting it to be profitable in two to three years’ time,” he said.
In the NCER blueprint, the role of Penang Port has been outlined as the point for produce which has been farmed and goods manufactured, to be shipped out from.
Additionally, the Government plans to encourage feeder services from Thailand and Sumatra to Penang Port in order to promote the port as a regional transshipment centre.
Source: Business Times (Article by Marina Emmanuel)
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