23 Jul 1999

Move to make PTP into a 'cyber port'

The Shipping Times

THE Royal Customs and Excise Department aims to make the Port of Tanjung Pelepas (PTP) into Malaysia's 'cyber port' which will boost its position as an alternative hub to Singapore.


Johor Customs deputy director M.Viknasevaran explained that the cyber port refers to faster documentation declaration process.

"For example, if a vessel was to sail out from Japan today, the manifest should be able to flow in the same day for Customs to process the documentation before the vessel arrive at PTP. In other words, we can give pre-shipment clearance of the cargo before it berths," he told Business Times in an interview in Johor Baru.

While the pre-shipment clearance is not something new in this country, having been implemented in Port Klang, nevertheless it will certainly be a boon to importers in the South and thus encourage them to use the port instead of Singapore.

Viknasevaran said the Customs Department will introduce phase 2 of the Sistem Maklumat Kastam (Customs Information System) - the electronic data interchange-based Customs documentation declaration system, covering the Tanjung Puteri (Causeway) and Sultan Abu Bakar Complex at the Second Link with an extension to PTP early next year.

The SMK system will be interfaced with the Electronic Data Interchange Malaysia (M) Sdn Bhd's cargo community network linking freight forwarders, the port shipping agents, financial institutions and other Government agencies based in Johor.

Another advantage of importing the cargo by sea via PTP instead of road mode by the Second Link is that the importer will be able to tell the cargo from the bill of lading.

"However for shipments by road the lorry will not able to ascertain before they leave Johor Baru what type of cargo goods they are supposed to carry.

"The importer cannot tell for certain the types of cargo and whether the lorry is coming in today," he said.

About 3,000 truck trips are recorded at the Causeway and another 400-450 trips using the Second Link daily of which half the number are laden with exports to Singapore while the others return empty, said Senior Assistant Director of Customs Kiruppalini M. Kandavavanam, who is the head of Sultan Abu Bakar Customs Complex at the Second Link.

While the bulk of Malaysian exports comprise perishables and raw materials/semi-finished products for the Singapore market, a substantial volume estimated at 300 tonnes daily are transhipment cargo which are shipped via Singapore Port.

Viknasevaran did not dismiss the possibility that a large volume of the transhipment cargo from Malaysia will start flowing back to the country when PTP is operational.

If that happens, the amount of levy collected by the Government on trucks leaving the country and coming in the country and coming in the country will drop.

The Customs collect RM200 from each lorry leaving the country and RM100 when they return at the Causeway and Second Link/

"That is the whole idea of having PTP (to boast usage of local ports)," he said, adding that the Johor Customs is working closely with PTP to promote it as an alternative hub.

Kiruppalini said he do not see why PTP cannot live up to its ambition of being a transhipment hub if it can deliver its services to the customers' expectations.

"Using PTP means only one level of Customs documentation and clearance instead of twice via Singapore overland - once at the Malaysian checkpoint and another at Singapore side of the Causeway or the Second Link," he pointed.

The Johor Customs Department has requested 200 additional staff to meet the extra dem and on manpower when the port is operational.