Exporting port management skills
The Star
Seemingly bold after capturing over RM750 million worth of business from their Singapore rival, Malaysian ports are now keen to export their expertise to the Indian sub continent, Africa and the Middle East. In fact, these ports have already expressed interest to offer concessions to Malaysian port operations to develop and manage their terminals.
The main factor that has prompted their eagerness to tap the domestic expertise is this – the astounding growth in volume from 3 million container boxes in 1997 to 10 million boxes forecast for this year.
For one, Port of Tanjung Pelepas (PTP) chief executive officer Mohd Sidik Shaik Osman strongly feels that it is time for Malaysian ports to export their expertise. “We have been building the port sector profile for over 30 years. I believe we are ready for the challenge, “ he says, adding that within five years or so, PTP is likely to tap this potential market.
“Just like Malaysia is exporting road building expertise to India, the port sector (in certain countries) is also in dire need of port management skills, “says Sidik in an interview with Bizweek.
Such as aspiration has in fact already taken shape going by the sizeable tie-ups between Malaysian companies and foreign experts.
MMC Construction and Engineering Sdn Bhd (MMC) has tied up with Shanghai based Zhenhua Port Machinery Co Ltd (ZPMC) to make quay cranes. Three of PTP’s latest 22 super post panamax cranes are from the MMC-ZPMC tie-up, with another two expected to arrive sometime later this month. The cranes are among the largest in the world with outreaches of 22 across.
Dredging company IMW-BHD Sdn Bhd is a joint venture between Dutch based Ballast Ham Dredging, and Malaysian based Integrated Marine Works Sdn Bhd (IMW). IMW is itself a joint venture between local dredging specialist Inai Kiara Sdn Bhd and Seaport Terminals (Johor) Sdn Bhd.
In addition, Polygon Services Sdn Bhd, a local specialist in port management services, has projects in Mundra Port, Gujerat, India that it has been managing for the past one and a half years. Polygon Services designed and constructed Mundra Port with a capacity of one million boxes, and a berth of 600 metres.
An added bonus is that the world’s largest operators have equity participation in two local ports. PTP is 30 per cent-owned by AP Moller that owns the largest container line in the world, Maersk Sealand. The stake was purchased for RM800 million two years ago.
Hutchison International Terminals holds a 30 per cent interest in Westport in Port Klang which it paid RM380 million two years ago. Westport has recently expressed interest to export expertise to two Indonesian ports in Semarang and Belawan.
On the other hand, Konsortium Logistik Sdn Bhd has a 26 per cent stake in Kakinada Port in Andhra Pradesh in South India. Its other attempt to take up a stake in Nava Shiva International Container Terminal fell through in 1998.