TRANSFORMING MALAYSIAN PORTS FROM NATIONAL

GATEWAYS TO INTERNATIONAL HUBS

PORT & MARITIME TRANSPORTATION SEMINAR

KOBE, JAPAN

18 OCTOBER 2006

TRANSFORMING MALAYSIAN PORTS FROM NATIONAL

GATEWAYS TO INTERNATIONAL HUBS

PORT & MARITIME TRANSPORTATION SEMINAR

KOBE, JAPAN

18 OCTOBER 2006

SCOPESCOPE

BRIEF OVERVIEW OF MALAYSIAN BRIEF OVERVIEW OF MALAYSIAN PORTSPORTSGOVERNMENTGOVERNMENT’’S PORT S PORT DEVELOPMENT POLICYDEVELOPMENT POLICYPORT KLANGPORT KLANG’’S JOURNEY TO BECOME S JOURNEY TO BECOME HUB PORTHUB PORTPORT OF TANJUNG PELEPAS PORT OF TANJUNG PELEPAS DEVELOPMENTDEVELOPMENT

MAJOR PORTSMAJOR PORTS

PORT KLANG PORT KLANG PORT OF TANJUNG PELEPASPORT OF TANJUNG PELEPASPENANGPENANGPASIR GUDANGPASIR GUDANGKUANTAN KUANTAN BINTULUBINTULU

GOVERNMENTGOVERNMENT’’S POLICYS POLICY

PORT KLANG AND PTP TO BE PORT KLANG AND PTP TO BE DEVELOPED AS NATIONAL LOAD DEVELOPED AS NATIONAL LOAD CENTRES AND TRANSHIPMENT HUBSCENTRES AND TRANSHIPMENT HUBS

OTHER MAJOR PORTS TO FUNCTION OTHER MAJOR PORTS TO FUNCTION AS SECONDARY / FEEDER PORTSAS SECONDARY / FEEDER PORTS

PORT KLANG: PERCEPTIONSECONDARY HUB PORT

PORT KLANG : VISIONAN INTERNATIONAL TRANSSHIPMENT

HUB PORT

PORT KLANG: PERCEPTIONSECONDARY HUB PORT

PORT KLANG : VISIONAN INTERNATIONAL TRANSSHIPMENT

HUB PORT

LIMITATIONSLIMITATIONSLIMITATIONS

NEIGHBOURING PORT WHICH IS A PRIMARY / INTERNATIONAL TRANSSHIPMENT HUB

FOR MAJOR SHIPPING LINES AND CONSORTIUMS

NEIGHBOURING PORT WHICH IS A PRIMARY / INTERNATIONAL TRANSSHIPMENT HUB

FOR MAJOR SHIPPING LINES AND CONSORTIUMS

PRE - 1993PRE PRE -- 19931993

MLO’S AND FEEDERS ALMOST NON-EXISTENT

• 14 MLO’s handling indegineouscargo

• No feeders to Port Klang• Feeders only to PSA

MLO’S AND FEEDERS ALMOST NON-EXISTENT

• 14 MLO’s handling indegineouscargo

• No feeders to Port Klang• Feeders only to PSA

STRATEGIESSTRATEGIESSTRATEGIES

GOVERNMENT POLICY

1993 PORT KLANG DESIGNATED AS THE

NATIONAL LOAD CENTREAND TRANSSHIPMENT HUB

GOVERNMENT POLICY GOVERNMENT POLICY

1993 1993 PORT KLANG DESIGNATED AS THE PORT KLANG DESIGNATED AS THE

NATIONAL LOAD CENTRENATIONAL LOAD CENTREAND TRANSSHIPMENT HUBAND TRANSSHIPMENT HUB

STRATEGIESSTRATEGIESSTRATEGIES

PRIVATISATION OF OPERATIONAL FACILITIES AND SERVICES

KCT – 1986KPM – 1992KMT – 1994 (Greenfield project with initial development by government & later privatised on BOT basis )

PRIVATISATION OF OPERATIONAL PRIVATISATION OF OPERATIONAL FACILITIES AND SERVICESFACILITIES AND SERVICES

KCT KCT –– 19861986KPM KPM –– 19921992KMT KMT –– 1994 (Greenfield project with 1994 (Greenfield project with initial development by government initial development by government & later & later privatisedprivatised on BOT basis )on BOT basis )

STRATEGIESSTRATEGIESSTRATEGIES

PORT INFRASTRUCTURE (SUPPLY DRIVEN)

- 2 Competitive Terminals with full facilities

PORT INFRASTRUCTURE PORT INFRASTRUCTURE (SUPPLY DRIVEN)(SUPPLY DRIVEN)

-- 2 Competitive Terminals with full facilities2 Competitive Terminals with full facilities

STRATEGIESSTRATEGIESSTRATEGIES

CONTAINER TERMINAL NORTHPORT WESTPORT

Number of Berths 12 9Length (Metres) 2711 2600Draft (Metres) 11 – 15 11 – 16.5

CONTAINER FACILITIES

Quay Cranes 24 24

Panamax 5 2Post Panamax 16 2Super Post Panamax 3 20On order (Super Post Panamax) 5 -

STRATEGIESSTRATEGIESBUILDING CARGO BASEBUILDING CARGO BASE

BY REDUCING LEAKAGES BY REDUCING LEAKAGES (MALAYSIAN CARGO)(MALAYSIAN CARGO)

LEAKAGESLEAKAGES

PENANG – PSA

2000 - 38.62001 - 31.3%2002 - 28.9%2003 - 25.52004 - 29.02005 - 34.0%

PORT KLANG – PSA

2000 - 16.5%2001 - 9.9%2002 - 9.8%2003 - 7.4%2004 - 9.8%2005 - 9.6%

STRATEGIES

BUILDING CARGO BASEBUILDING CARGO BASEBUILDING CARGO BASE

LOAD CENTERING- DEDICATED FEEDER INCENTIVE

SCHEME

LOAD CENTERINGLOAD CENTERING-- DEDICATED FEEDER INCENTIVE DEDICATED FEEDER INCENTIVE

SCHEMESCHEME

STRATEGIES

BUILDING CARGO BASEBUILDING CARGO BASEBUILDING CARGO BASE

BUILD TRANSSHIPMENT VOLUMEBUILD TRANSSHIPMENT VOLUME-- REGIONAL FEEDER INCENTIVE REGIONAL FEEDER INCENTIVE SCHEMESCHEME

-- ASEAN / INDIA SUBASEAN / INDIA SUB--CONTINENTCONTINENT

CURRENT NO. REGIONAL FEEDER INCENTIVE SCHEME SERVICES

THAILAND - 7INDONESIA - 11INDIA - 7VIETNAM - 3BANGLADESH - 5MYANMAR - 6

THAILAND THAILAND -- 77INDONESIAINDONESIA -- 1111INDIAINDIA -- 77VIETNAMVIETNAM -- 33BANGLADESHBANGLADESH -- 55MYANMARMYANMAR -- 66

STRATEGIESSTRATEGIESSTRATEGIES

LIFTING OF THE CABOTAGE POLICY

TO ALLOW FOREIGN FLAGGED SHIPS TO CARRY LOCAL CARGO BETWEEN LOCAL PORTS FOR LOAD CENTERING

EG. PENANG – PORT KLANGPASIR GUDANG – PORT KLANG

LIFTING OF THE CABOTAGE POLICYLIFTING OF THE CABOTAGE POLICY

TO ALLOW FOREIGN FLAGGED SHIPS TO CARRY LOCAL CARGO BETWEEN LOCAL PORTS FOR LOAD CENTERING

EG. PENANG – PORT KLANGPASIR GUDANG – PORT KLANG

STRATEGIES

FREE ZONEFREE ZONEFREE ZONE

NORTHPORT – 1/4/93WESTPORT – 20/6/96SOUTHPOINT– 19/2/2004PKFZ - 8/6/2005

PAPERLESS SYSTEM 2001DISTRIPARK FACILITIESIPC

NORTHPORT NORTHPORT –– 1/4/931/4/93WESTPORT WESTPORT –– 20/6/9620/6/96SOUTHPOINTSOUTHPOINT–– 19/2/200419/2/2004PKFZPKFZ -- 8/6/20058/6/2005

PAPERLESS SYSTEM 2001PAPERLESS SYSTEM 2001DISTRIPARK FACILITIESDISTRIPARK FACILITIESIPCIPC

STRATEGIES

PORT KLANG FREE ZONE

STRATEGIESSTRATEGIES

PORT KLANG FREE ZONEPORT KLANG FREE ZONE

1000 ACRES

MANUFACTURING / COMMERCIAL ACTIVITIES

TO BE LAUNCHED IN NOV 2006

1000 1000 ACRESACRES

MANUFACTURING / MANUFACTURING / COMMERCIAL ACTIVITIESCOMMERCIAL ACTIVITIES

TO BE LAUNCHED IN NOV TO BE LAUNCHED IN NOV 20062006

STRATEGIES

INLAND PORTSINLAND PORTSINLAND PORTS

ICT

SIP

ICTICT

SIPSIP

STRATEGIESEDI:

PORT KLANG COMMUNITY SYSTEM

STRATEGIESSTRATEGIESEDI:EDI:

PORT KLANG COMMUNITY SYSTEMPORT KLANG COMMUNITY SYSTEM

ELECTRONIC DECLARATIONS

CUSREPCUSCARCUSDEC

- Simple and Paperless Transshipment declaration

ELECTRONIC DECLARATIONSELECTRONIC DECLARATIONS

CUSREPCUSREPCUSCARCUSCARCUSDECCUSDEC

-- Simple and Paperless Simple and Paperless Transshipment declarationTransshipment declaration

STRATEGIESLIBERALISATION OF THE HAULAGE

INDUSTRY

STRATEGIESSTRATEGIESLIBERALISATION OF THE HAULAGE LIBERALISATION OF THE HAULAGE

INDUSTRYINDUSTRY

SINCE 1973 – 2000 ONLY 5 OPERATORS

NOW > 80

IMPROVED SERVICES

IMPACT ON RECEIVAL AND DELIVERIES

IMPROVED LOGISTICS/JIT

SINCE 1973 SINCE 1973 –– 2000 ONLY 5 OPERATORS2000 ONLY 5 OPERATORS

NOW > 80NOW > 80

IMPROVED SERVICESIMPROVED SERVICES

IMPACT ON RECEIVAL AND DELIVERIESIMPACT ON RECEIVAL AND DELIVERIES

IMPROVED LOGISTICS/JITIMPROVED LOGISTICS/JIT

STRATEGIESSTRATEGIESSTRATEGIES

MAINTAIN PRICE COMPETITIVENESSMAINTAIN PRICE COMPETITIVENESSMAINTAIN PRICE COMPETITIVENESS

CONCESSIONARY TRANSSHIPMENT TARIFFCONCESSIONARY TRANSSHIPMENT TARIFF-- ( USD 38 )( USD 38 )

MINIMAL TARIFF INCREASE OVER THE YEARSMINIMAL TARIFF INCREASE OVER THE YEARS-- ( USD 51.35 TO USD 62 per TEU FCL )( USD 51.35 TO USD 62 per TEU FCL )

OTHER TARIFF INCENTIVESOTHER TARIFF INCENTIVES

STRATEGIESSTRATEGIESSTRATEGIES

PORT PROMOTION AND MARKETING

VISITS TO CLIENTSDIALOGUESPROMOTIONAL TRIPSINTERNATIONAL AND REGIONAL TRADE FAIRS / EXHIBITIOND

PORT PROMOTION AND MARKETINGPORT PROMOTION AND MARKETING

VISITS TO CLIENTSVISITS TO CLIENTSDIALOGUESDIALOGUESPROMOTIONAL TRIPSPROMOTIONAL TRIPSINTERNATIONAL AND REGIONAL INTERNATIONAL AND REGIONAL TRADE FAIRS / EXHIBITIONDTRADE FAIRS / EXHIBITIOND

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACEMEGA SIZE VESSELSMEGA SIZE VESSELSMEGA SIZE VESSELS

OOCL SHENZHENOOCL SHENZHEN( 8,063 TEUS)( 8,063 TEUS)

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACEMEGA SIZE VESSELSMEGA SIZE VESSELSMEGA SIZE VESSELS

CSCL EUROPECSCL EUROPE( 8,468( 8,468 TEUS)

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACE

EXPECTATIONS OF MEGA SIZE VESSELS

HIGHER CRANE PRODUCTIVITY (CURRENT AVERAGE 32 – 36 MPH)FASTER TURN AROUNDHIGHER CARGO EXCHANGEDEEPER DRAFTMINIMISE PORT COSTS

EXPECTATIONS OF MEGA SIZE VESSELSEXPECTATIONS OF MEGA SIZE VESSELS

HIGHER CRANE PRODUCTIVITY HIGHER CRANE PRODUCTIVITY (CURRENT AVERAGE 32 (CURRENT AVERAGE 32 –– 36 36 MPH)MPH)FASTER TURN AROUNDFASTER TURN AROUNDHIGHER CARGO EXCHANGEHIGHER CARGO EXCHANGEDEEPER DRAFTDEEPER DRAFTMINIMISE PORT COSTSMINIMISE PORT COSTS

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACEMEGA SIZE VESSELSMEGA SIZE VESSELSMEGA SIZE VESSELS

CURRENTLY PORT KLANG IS CHOSEN AS A PRIMARY HUB BY:

CMACHINA SHIPPING

HANJINWAN HAI LINES

PORT KLANG AS SECONDARY HUB BY OTHERS

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACE

LINER ALLIANCES

LINER ALLIANCES PROVIDE GLOBAL SERVICE IN PURSUIT OF RELATIVELY

LOW COST BUT HIGH QUALITY OF SERVICES AND CONNECTIVITY

LINER ALLIANCESLINER ALLIANCES

LINER ALLIANCES PROVIDE GLOBAL LINER ALLIANCES PROVIDE GLOBAL SERVICE IN PURSUIT OF RELATIVELY SERVICE IN PURSUIT OF RELATIVELY

LOW COST BUT HIGH QUALITY OF LOW COST BUT HIGH QUALITY OF SERVICES AND CONNECTIVITYSERVICES AND CONNECTIVITY

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACERAPID GROWTH OF TRADE AT

MAINLAND CHINA PORTS

AS DEMAND IS GREATER THEN SUPPLY, SHIPPING LINES MAY OMIT LOW REVENUE CONTRIBUTING CARGO I.E. OMIT SECONDARY PORTS.

SITUATION EXPECTED TO IMPROVE IN 2007 WITH NEW BUILDINGS

RAPID GROWTH OF TRADE AT RAPID GROWTH OF TRADE AT MAINLAND CHINA PORTSMAINLAND CHINA PORTS

AS DEMAND IS GREATER THEN AS DEMAND IS GREATER THEN SUPPLY, SHIPPING LINES MAY OMIT SUPPLY, SHIPPING LINES MAY OMIT LOW REVENUE CONTRIBUTING LOW REVENUE CONTRIBUTING CARGO I.E. OMIT SECONDARY PORTS.CARGO I.E. OMIT SECONDARY PORTS.

SITUATION EXPECTED TO IMPROVE SITUATION EXPECTED TO IMPROVE IN 2007 WITH NEW BUILDINGSIN 2007 WITH NEW BUILDINGS

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACE

DIRECT CALLS FROM CHINA PORTS TO EUROPE / US

POTENTIAL REDUCTION TRANSSHIPMENT VOLUME

DIRECT CALLS FROM CHINA PORTS DIRECT CALLS FROM CHINA PORTS TO EUROPE / USTO EUROPE / US

POTENTIAL REDUCTION POTENTIAL REDUCTION TRANSSHIPMENT VOLUMETRANSSHIPMENT VOLUME

CHALLENGES WE FACECHALLENGES WE FACE

VOLATILE GLOBAL POLITICSVOLATILE GLOBAL POLITICS

UNCERTAINITY IN FUEL PRICESUNCERTAINITY IN FUEL PRICES

SECURITY CONCERNS / THREAT OF SECURITY CONCERNS / THREAT OF TERRORISM TOWARDS PORTS, TERRORISM TOWARDS PORTS, SHIPPING & COMMERCIAL SEALANESSHIPPING & COMMERCIAL SEALANES

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACE

STEEP INCREASE IN SHIP CHARTER RATES RESULTING IN

RESTRUCTURING OF SERVICESCONSOLIDATIONWITHDRAWAL OF SERVICES

STEEP INCREASE IN SHIP CHARTER STEEP INCREASE IN SHIP CHARTER RATES RESULTING INRATES RESULTING IN

RESTRUCTURING OF SERVICESRESTRUCTURING OF SERVICESCONSOLIDATIONCONSOLIDATIONWITHDRAWAL OF SERVICESWITHDRAWAL OF SERVICES

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACEEMERGING REGIONAL PORTS

E.g. LAEM CHABANGJAKARTA

MORE DIRECT SERVICESREDUCE POTENTIAL TRANSSHIPMENT AT PORT KLANG

EMERGING REGIONAL PORTSEMERGING REGIONAL PORTS

E.g. LAEM CHABANGE.g. LAEM CHABANGJAKARTA JAKARTA

MORE DIRECT SERVICESMORE DIRECT SERVICESREDUCE POTENTIAL REDUCE POTENTIAL TRANSSHIPMENT AT PORT KLANGTRANSSHIPMENT AT PORT KLANG

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACE

PORT OF TANJUNG PELEPAS

INTERNATIONAL TRANSSHIPMENT HUB

GOOD LOCATION

GOVERNMENT POLICIES?

PORT OF TANJUNG PELEPASPORT OF TANJUNG PELEPAS

INTERNATIONAL TRANSSHIPMENT HUBINTERNATIONAL TRANSSHIPMENT HUB

GOOD LOCATIONGOOD LOCATION

GOVERNMENT POLICIES?GOVERNMENT POLICIES?

CHALLENGES WE FACECHALLENGES WE FACECHALLENGES WE FACE

PROXIMITY TO PSA

GOOD FEEDER NETWORK

COST EFFECTIVE TO USE FEEDERS

LEAKAGES THROUGH CAUSEWAY/2ND LINK

PROXIMITY TO PSAPROXIMITY TO PSA

GOOD FEEDER NETWORKGOOD FEEDER NETWORK

COST EFFECTIVE TO USE FEEDERSCOST EFFECTIVE TO USE FEEDERS

LEAKAGES THROUGH CAUSEWAY/2LEAKAGES THROUGH CAUSEWAY/2NDND LINKLINK

HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?IMPROVE OPERATION EFFICIENCY

HUMAN CAPITALINFORMATION MANAGEMENTCONTAINER YARD OPERATIONSEQUIPMENT UTILIZATIONOPTIMIZE VESSEL OPERATIONS AND CARGO HANDLING

IMPROVE OPERATION EFFICIENCYIMPROVE OPERATION EFFICIENCY

HUMAN CAPITALHUMAN CAPITALINFORMATION MANAGEMENTINFORMATION MANAGEMENTCONTAINER YARD OPERATIONSCONTAINER YARD OPERATIONSEQUIPMENT UTILIZATIONEQUIPMENT UTILIZATIONOPTIMIZE VESSEL OPERATIONS AND OPTIMIZE VESSEL OPERATIONS AND CARGO HANDLINGCARGO HANDLING

HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?PRO BUSINESS APPROACH

WORK CLOSELY WITH SHIPPING LINES AND SHIPPERS

CUSTOM CLEARANCE - GOLDEN CLIENT SYSTEM

SIMPLIFICATION OF DOCUMENTS –FOR TRANSSHIPMENT ONLY STATUS LIST

TO TERMINAL OPERATORS

PRO BUSINESS APPROACHPRO BUSINESS APPROACHWORK CLOSELY WITH SHIPPING LINES AND WORK CLOSELY WITH SHIPPING LINES AND

SHIPPERSSHIPPERS

CUSTOM CLEARANCE CUSTOM CLEARANCE -- GOLDEN CLIENT GOLDEN CLIENT SYSTEMSYSTEM

SIMPLIFICATION OF DOCUMENTS SIMPLIFICATION OF DOCUMENTS ––FOR TRANSSHIPMENT ONLY STATUS LIST FOR TRANSSHIPMENT ONLY STATUS LIST

TO TERMINAL OPERATORSTO TERMINAL OPERATORS

HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?

IMPROVE ANCILARY SERVICES

SHIP CHANDLINGBUNKERING

RECEPTION FACILITIES

IMPROVE ANCILARY SERVICESIMPROVE ANCILARY SERVICES

SHIP CHANDLINGSHIP CHANDLINGBUNKERING BUNKERING

RECEPTION FACILITIESRECEPTION FACILITIES

HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?

INCREASE TRANSSHIPMENT CARGO

LOOKING AT NEW MARKETSREVIEW INCENTIVE SCHEME TO FEEDERSWORKING CLOSELY WITH LOCAL SHIPPING LINES FOR LOAD CENTERING

INCREASE TRANSSHIPMENT CARGOINCREASE TRANSSHIPMENT CARGO

LOOKING AT NEW MARKETSLOOKING AT NEW MARKETSREVIEW INCENTIVE SCHEME TO FEEDERSREVIEW INCENTIVE SCHEME TO FEEDERSWORKING CLOSELY WITH LOCAL WORKING CLOSELY WITH LOCAL SHIPPING LINES FOR LOAD CENTERINGSHIPPING LINES FOR LOAD CENTERING

HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?

CABINET COMMITTEE ON PORT COMPETITIVENESS

A SPECIAL COMMITTEE COMMISSIONED TO STUDY AND RECOMMEND

STRATEGIES TOWARDS ENHANCING THE COMPETITIVESNESS OF

MALAYSIAN PORTS (STATUS ONGOING)

CABINET COMMITTEE ON PORT CABINET COMMITTEE ON PORT COMPETITIVENESSCOMPETITIVENESS

A SPECIAL COMMITTEE COMMISSIONED A SPECIAL COMMITTEE COMMISSIONED TO STUDY AND RECOMMEND TO STUDY AND RECOMMEND

STRATEGIES TOWARDS ENHANCING STRATEGIES TOWARDS ENHANCING THE COMPETITIVESNESS OF THE COMPETITIVESNESS OF

MALAYSIAN PORTS MALAYSIAN PORTS (STATUS ONGOING)(STATUS ONGOING)

HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?ADDRESS SECURITY ISSUESADDRESS SECURITY ISSUES

ISPS COMPLIANTISPS COMPLIANT

RATIFIED AS CSI PORTRATIFIED AS CSI PORT

MEGAPORT INITIATIVE MEGAPORT INITIATIVE ––CURRENTLY WORKING WITH CURRENTLY WORKING WITH US AUTHORITIESUS AUTHORITIES

TERMINALS AND LOCAL TERMINALS AND LOCAL INDUSTRIES EMBARKING ON CINDUSTRIES EMBARKING ON C--TPAT TPAT

COMPLIANCE TO ANNUAL COMPLIANCE TO ANNUAL SECURITY ASSESSMENTSECURITY ASSESSMENT

COOPERATION WITH US COOPERATION WITH US COASTGUARD ON EXTERNAL COASTGUARD ON EXTERNAL SECURITY AUDITSSECURITY AUDITS

HOW DO WE STAY AHEAD?HOW DO WE STAY AHEAD?DEEPENING OF NORTH CHANNEL DEEPENING OF NORTH CHANNEL FROM 11.3 M TO 15.5M FROM 11.3 M TO 15.5M –– PROJECT PROJECT COMMENCED IN NOV COMMENCED IN NOV

COMMENCED 2005 TO BE COMPLETED COMMENCED 2005 TO BE COMPLETED IN 2008IN 2008

REDUCE STEAMING TIME BY 3 HOURSREDUCE STEAMING TIME BY 3 HOURS

PROVIDE ALTERNATE DEEP WATER PROVIDE ALTERNATE DEEP WATER ACCESS INTO PORTACCESS INTO PORT

FUTURE DEVELOPMENTSFUTURE DEVELOPMENTSFUTURE DEVELOPMENTS

PORT KLANG MASTER PLAN : 2006 -2010

NORTH PORTCONVERSION OF BERTHSREFURBISHMENT OF BERTHSREDEVELOPMENT OF SOUTH POINT

WEST PORTCONSTRUCTION OF 1.8 KM BERTHS & BACK UP FACILITIES

FUTURE DEVELOPMENTSFUTURE DEVELOPMENTS

DEEPENING OF SOUTH CHANNEL DEEPENING OF SOUTH CHANNEL FROM 15.5 m TO 17.0 m AND FROM 15.5 m TO 17.0 m AND WIDENING FROM 360 m TO 500 m IN WIDENING FROM 360 m TO 500 m IN 20082008

NEW DEEP SEA PORT FACILITIES OFF NEW DEEP SEA PORT FACILITIES OFF WESTPORT AND CAREY ISLAND WITH WESTPORT AND CAREY ISLAND WITH DEPTHS UP TO 20 mDEPTHS UP TO 20 m

OPPORTUNITIESOPPORTUNITIESOPPORTUNITIES

INDIGENOUS CARGO BASE

YEAR 2005 GROWTH

IMPORT 1,342,901EXPORT 1,276,661 3.6%TOTAL 2,619,562PERCENTAGE OUT OF TOTAL VOLUME HANDLED IN 2005: 47.3%

INDIGENOUS CARGO BASEINDIGENOUS CARGO BASE

YEAR 2005YEAR 2005 GROWTHGROWTH

IMPORTIMPORT 1,342,9011,342,901EXPORTEXPORT 1,276,6611,276,661 3.6%3.6%TOTALTOTAL 2,619,5622,619,562PERCENTAGE OUT OF TOTAL PERCENTAGE OUT OF TOTAL VOLUME HANDLED IN 2005: 47.3%VOLUME HANDLED IN 2005: 47.3%

OPPORTUNITIESOPPORTUNITIESOPPORTUNITIESGROWING REGIONAL MARKETS AND

INTRA ASIA TRADE

- INCREASING EXPORTS IN THE INTRA ASIA REGION

- GROWING IMPORTANCE OF DEVELOPING MARKETS IN THE REGION :INDIAN SUBCONTINENTPROXIMITY OF INDIAN PORTS/CHITTAGONG TO PORT KLANG

GROWING REGIONAL MARKETS AND GROWING REGIONAL MARKETS AND INTRA ASIA TRADEINTRA ASIA TRADE

-- INCREASING EXPORTS IN THE INTRA ASIA INCREASING EXPORTS IN THE INTRA ASIA REGION REGION

-- GROWING IMPORTANCE OF DEVELOPING GROWING IMPORTANCE OF DEVELOPING MARKETS IN THE REGION :MARKETS IN THE REGION :INDIAN SUBCONTINENTINDIAN SUBCONTINENTPROXIMITY OF INDIAN PORTS/CHITTAGONG PROXIMITY OF INDIAN PORTS/CHITTAGONG TO PORT KLANGTO PORT KLANG

OBJECTIVE TOP 10

CONCLUSIONCONCLUSIONCONCLUSION

MANY CHALLENGES

WITHIN / WITHOUT

CONTROL / MITIGATE

OBJECTIVE TOP 10OBJECTIVE TOP 10

MANY CHALLENGESMANY CHALLENGES

WITHIN / WITHOUTWITHIN / WITHOUT

CONTROL / MITIGATECONTROL / MITIGATE

COMPETITIVE POSITION

COMPETING STRONGLY

COMPETITIVE POSITIONCOMPETITIVE POSITION

COMPETING STRONGLYCOMPETING STRONGLY

CONCLUSIONCONCLUSION

PORT KLANG TOTAL THROUGHPUT AND TRANSSHIPMENT

54.054.02,448,0822,448,0824,533,2124,533,2122002200250.250.21,886,7451,886,7453,759,5123,759,5122001200142.142.11,350,4841,350,4843,206,7533,206,7532000200037.937.9966,090966,0902,550,4192,550,4191999199923.923.9435,854435,8541,820,0181,820,0181998199816.516.5277,120277,1201,684,5081,684,5081997199710.210.2144,386144,3861,409,5941,409,594199619962.72.730,80430,8041,133,8111,133,811199519951.01.09,1269,126944,386944,386199419940.20.21,7501,750771,901771,90119931993

% % OF OF TRANSSHIPMENTTRANSSHIPMENT

TRANSSHIPMENTTRANSSHIPMENTTEUSTEUS

TOTALTOTALTEUSTEUS

YEARYEAR

20032003 4,841,2354,841,235 2,581,8482,581,848 53.353.320042004 5,243,5935,243,593 2,715,0952,715,095 51.851.820052005 5,543,5275,543,527 2,923,9652,923,965 52.852.8

WORLD CONTAINER PORTS RANKING1993 – 58TH

1995 – 27TH

2003 – 12TH

2005 – 14TH

THROUGHPUT HANDLED

1993 – 0.78M TEUS

2003 – 4.84M TEUS

2004 – 5.24M TEUS

2005 – 5.54M TEUS

2006 – 6.1M TEUS ( EST )

WORLD CONTAINER PORTS RANKING1993 – 58TH

1995 – 27TH

2003 – 12TH

2005 – 14TH

THROUGHPUT HANDLED

1993 – 0.78M TEUS

2003 – 4.84M TEUS

2004 – 5.24M TEUS

2005 – 5.54M TEUS

2006 – 6.1M TEUS ( EST )

16 October 2006

The Building of A Regional Transshipment Hub

1995 – Tanjung Pelepas, Mangrove Swamp

2006 – Tanjung Pelepas, World-class transshipment Hub

PTP – Emerged as Transshipment Hub

Ultimate LocationIntersection of East –West International trade lanes45 minutes diversion time

Natural FactorsSheltered bay & no tide restrictionTerminal Draft of 15-19 meters12.6 km of Accesschannel for two-way trafficTurning basin of 600 m

World Class and StateWorld Class and State--ofof--thethe--art Facilities & art Facilities & EquipmentsEquipmentsFacilities

2,880m linear quay (8 berths x 360m)154,000 TEU capacity container yard2,100 Reefer points 6 million TEU capacity

Equipment24 super-post panamax cranes

14 with 18 rows outreach 10 with 22 rows outreach & twin pick

72 Rubber Tyred Gantry cranesIntegrated IT system

Ancillary FacilitiesContainer repair & maintenanceOn-dock depotBunkering & other marine servicesInspection BaysOperations Support Center

Facilities – Growing for the future

FacilitiesBerth 9 & 10 under construction(720m) completion expected Q4 20068 million TEU capacity

EquipmentAdditional 3 New Quay Cranes (Twin Lift of 40ft capable) – biggest in the region

Throughput

Malaysia Port Volumes (2001 Malaysia Port Volumes (2001 --2005)2005)PTP Volumes (2000 PTP Volumes (2000 ––2005)2005)

418K

2.05 M

2.66 M

3.49 M

4.02 M 4.20 M

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2000 2001 2002 2003 2004 2005

TEU ('000)

Port Name 2001 2002 2003 2004 2005

PTP2,05

02,67

8 3,490 4,020 4,177

North Port2,30

42,48

3 2,510 2,690 2,632

West Port1,45

62,05

0 2,300 2,510 2,868

Johor Port 639 684 750 806 837Penang Port 600 634 688 770 795

Bintulu 76 91 144 144 148

Kuantan 76 91 108 123 119

Total M'sia

7,479

8,900

10,000

11,000

12,000

Regional Landscape

PSA Corp

20.6 million TEUs

PTP

4.177 million TEUs

Johor Port

837,000 TEUs

Tanjung Priok

3.18 million TEUs

Thai Ports

BKK : 1.32mnLCB : 3.62mnTotal: 4.94mn

Westport

2.8 million TEUs

Northport

2.6 million TEUs

Penang Port

795,000 TEUs

THANK YOUTHANK YOUTHANK YOU

BINTULU

KOTA KINABALU

PENANG

KUANTANPORT KLANG

KUCHING

PTPSINGAPORE