YB MINISTER OF FINANCE II AND YB MINISTER OF TRANSPORT

VISITS PORT KLANG

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@pka1malaysia

@pka1malaysia

2

EDITORIAL TEAM

ADVISOR

Capt. K. Subramaniam

EDITOR-IN-CHIEF Shanti T. Gunaratnam

EDITOR Nur Faizatul Ismah Rosli

A working visit to Port Klang led by YB Datuk Seri Johari Abdul Ghani, Minister of Finance II Malaysia and YB Dato’ Sri Liow

Tiong Lai, Minister of Transport Malaysia was held on 8 March 2018 to review the port operations, mainly involving Customs

procedures.

The visit commenced with a presentation and discussion session between the Ministry of Finance (MOF) and the Ministry

of Transport (MOT). The session was co-chaired by both Ministers and attended by Royal Malaysian Customs’ officers led

by YBhg. Dato' Sri Subromaniam Tholasy, Director General of Royal Malaysian Customs and officers from Port Klang

Authority (PKA) led by YBhg. Tan Sri Kong Cho Ha, Chairman of PKA and Capt. K. Subramaniam, General Manager of

PKA. All parties agreed to cooperate to ensure imports, exports and transhipment activities run smoothly to strengthen

Port Klang's position as a world-class port.

The delegation was later taken on a port tour of Northport, Westports and PKFZ and were given a briefing of port and

logistics operations. Also present during the visit was YBhg. Dato 'Azman Shah Mohd Yusof, Chief Executive Officer,

Northport (Malaysia) Bhd, YBhg. Datuk Tan Chong Seng, Chairman of PKFZ and YBhg. Dato' Ong Chong Yi, Chief

Executive Officer, PKFZ.

ISSUE 01/2018 JANUARY – MARCH 2018

e-Gateway is a publication of Port Klang Authority

During the meeting co-chaired by both Minister of

Finance (MOF) Malaysia, YB Datuk Seri Johari Abdul

Ghani and Minister of Transport (MOT) Malaysia, YB Dato’

Sri Liow Tiong Lai

Group photo from left:

Dato’ Khadijah Abdullah (Secretary of Tax Division

MOF), YBhg. Datuk Tan Chong Seng (PKFZ Chairman),

YBhg. Tan Sri Kong Cho Ha (PKA Chairman), YBhg. Dato’

Sri Idris Jala (CEO PEMANDU), YB Datuk Seri Johari Abdul

Ghani (2nd Finance Minister), YB Dato’ Sri Liow Tiong Lai

(Minister MOT), YBhg. Datuk Seri Sharipuddin Hj Kasim

(KSU MOT), YBhg. Dato’ Sri Subromaniam Tholasy

(Director General of Royal Malaysian Customs), and

YBhg. Dato’ Azman Shah Mohd Yusof (CEO Northport)

Meeting at Royal Malaysian Customs and Operational Site Visits to PKFZ, Westports and

Northport

E-GATEWAY 01/2018

On 6th March 2018, a Privatisation Agreement was signed between The

Government of Malaysia, Port Klang Authority and Northport (Malaysia) Bhd

(NMB), witnessed by Transport Minister Dato’ Sri Liow Tiong Lai.

Northport has been operating under an interim agreement based on the terms

and conditions of the 1992 Privatisation Agreement since the concession expired

on Nov 30, 2013, until a new privatisation is approved.

Under the new concession agreement, Northport is granted the right and

authority to provide and carry out the development, operation, maintenance,

management and control of Northport and Southpoint in Port Klang for a period

of 30 years until Nov 30, 2043.

The country first privatisation project took place in Port Klang in tandem with the

Government’s policy to infuse private sector management and discipline in

various Government owned/controlled undertakings. In 1986, the container

terminal facilities operated by Port Klang Authority was privatised to Klang

Container Terminal Berhad (KCT). Subsequently, the remaining operational

facilities and services of the port were privatised to Klang Port Management Sdn

Bhd (KPM) in 1992. Both KCT and KPM merged and became Northport in 2001.

NORTHPORT granted 30-year concession extension

1986

FIrst privatsisaon exercise in Malaysia.

Container operations of Port Klang Authority was privatised to Kelang

Container Teriminal (KCT)

1992

The remaining operational activities in

Port Klang Authority were privatised to

Klang Port Management

2001

KCT AND KPM merged into

Northport (Malaysia) Bhd

2018

30-year concession renewal until 2043

First Shipping Transaction on Ethereum Blockchain at Westports, Port Klang

A trial shipment using smart technology known as the Ethereum blockchain has successfully taken place at

Westports, Port Klang. Ethereum is an open-source, public, blockchain-based distributed computing platform

and operating system featuring smart contract functionality developed by 300cubits, a Hong Kong-based

firm. 300cubits has developed its blockchain-based platform to tackle industry pain points such as no-show

and rolling by creating its digital currency, TEU tokens, as a booking deposit and a decentralized application

ecosystem.

On March 15, 2018, TEU tokens held as booking deposit on blockchain were returned to the users upon receipt

of port EDI message on a textile shipment. The shipment consists of two 40-foot high cube container boxes

going from Malaysia to Brazil. A Malaysian liner company, Westports and LPR, a Brazilian textile importer that

ships few thousand TEU a year, participated in the trial.

The process involved both the shipper and the liner placing TEU token deposits on March 9, 2018, which were

then returned on March 15, 2018, upon successful completion of shipment loading.

Vijaya Kumar, General Manager of Marketing at Westports, stated: “We are strong believer in shipping

digitalization, especially when it comes to improving efficiency and providing better services for global supply

chain, and supporting the innovations being embarked on by our customers.”

E-GATEWAY 01/2018

Port Klang joins KTMB’s trade mission to Thailand

Port Klang Authority and its terminal operator, Northport & Westports joined a working visit and trade mission to Hatyai, South Thailand on 26th January 2018. This initiative was organized by Keretapi Tanah Melayu Berhad (KTMB) to promote rail services by KTMB from Port Klang to Southern Thailand and vice versa, as well as to boost container shipments between two countries. The trade mission was also participated by representatives from Penang Port Sdn. Bhd., MMC Port, Multi Capital. The hi-tea session – A Joint Sales and Marketing Hi Tea held at Centara Hotel saw 40 representatives from shipping agencies in Malaysia and Thailand discussing and exploring new trading opportunities and cooperation to improve cargo handling between both countries.

IMPLEMENTATION OF HAULIER DEPOT BOOKING SYSTEM (HDBS) AT PORT KLANG

Participants of A Joint Sales and Marketing Hi Tea at

Centara Hatyai Hotel, Southern Thailand. Also present

were the General Manager of Cargo KTM Services, Mohd.

Din Mohammad and Chief Executive Officer of Multi

Capital Freight Sdn. Bhd., Mohd. Hasdey Yaakob.

Port Klang Authority (PKA) will implement the Haulier Depot Booking System (HDBS) at On Dock Depots (ODDs) in Port Klang mandatorily wth effect from 1st May 2018 to facilitate the haulage fraternity to manage their fleet deployment more effectively. The HDBS will improve efficiency at depots by optimum utilization of resources. It will also reduce congestion at ports gates and improve turnaround time of haulier trucks.

HDBS enables the Haulage Companies to plan appointments to ODDs for MT pickup and drop off transactions. The haulage company will need to make prior bookings for delivery and pick-up of MT units from ODDs. The booking window will be made available 24 hours a day. Booking in HDBS can be made at any time for either container delivery or pick-up if the slot is vacant and booking is accepted by the ODD Operator. The number of bookings within one slot (one hour) will be determined based on the capacity of an ODD. Haulage Companies need to ensure that the ODD has accepted / rejected the booking prior to gate-in. In the event the Haulier is unable to deliver or pick-up an empty container within the booking time, the Haulage Operator must cancel the booking before the booking time in order to give way for other Haulage Operators to make a booking. The booking is valid for 3 hours beginning from 1 hour before the allocated time. It will be cancelled automatically after that period and a penalty may be imposed in case of no show. Implementation of HDBS can improve the operations efficiency and achieve the service level set by PKA of 45 minutes haulage turn-around time at ODDs. This system is an extension of the current Haulage Pre-Arrival Booking (HPAB) which was introduced several years ago to cater for import/export laden containers.

E-GATEWAY 01/2018

PKA CELEBRATES CHINESE NEW YEAR CELEBRATION

AND CONTINUES ITS CSR GESTURES TO HELP THE NEEDY

Port Klang Authority hosted a luncheon to celebrate Chinese New Year on 21 February 2018. The event was aimed at fostering closer ties with industry players as well as helping the less fortunate. Present at the event were PKA Board Members, representatives from Terminal Operators, goverment agencies, members of shipping associations and more than 30 guests from 3 welfare centres and old folks homes around the Klang area which were the Good Samaritan Home Klang, Pusat Jagaan Kanak-Kanak Down Syndrome dan Hyper Active Klang and Grace Home Klang. The event began with the traditional dragon dance followed by the tossing of the Yee Sang led by Tan Sri Kong Cho Ha, PKA Chairman. Tan Sri Kong later handed over cheques amounting to RM1,500 to each of the welfare organisation. Guests were also treated to performances by Zhong Yi Asssociation Lion Dance Selangor.

VIP guest doing Yee Sang tossing to celebrate Chinese New Year

The Year of the Dog is expected to bring

happiness, harmony and success, with

individuals required to improve their focus

and believe in their own abilities.

Tan Sri Kong Cho Ha distributed Ang Pow to

the charity homes residents

The luncheon saw close to 300 guests including PKA staff to

be part of the Chinese New Year Celebration 2018

E-GATEWAY 01/2018

5th March 2018

Maiden Voyage of MV Trans Harmony to Westports, Port Klang.

Trans Harmony 1 was launched on August 23rd 2017. This Toyofuji Shipping's

new 3,000-vehicle car carrier vessel is designed in consideration of the

environment and shaped to reduce water and wind resistance, includes

equipment that also cuts water resistance, and features electronically-

controlled engines and other technology that are expected to reduce CO2

emissions per loaded vehicle by 52%, in comparison with conventional

vessels. A variety of newly developed features have also been incorporated

to improve the loading operations environment and help ensure crew

safety.

17 January 2018

A delegation from Hapag Lloyd HQ led by Mr. Joern Springer, Head of Fleet Support

Centre, Hapag Llyod visited Port Klang Authority to discuss on opportunities for mutual

cooperation. The meeting was fruitful as it focused on port's infrastructure, marine

operations, and possibilities to strengthen existing ties between both parties. Capt

Subra, General Manager of Port Klang Authority expressed his gratitude and Port Klang’s

interest in establishing further cooperation with Hapag-Lloyd AG which is currently

the world's fifth largest container line.

DELEGATION FROM HAPAG LLOYD HQ

VISITS PORT KLANG AUTHORITY

TOYOFUJI SHIPPING’S NEW VESSEL - MV TRANS HARMONY 1

MAIDEN VOYAGE AT WESTPORTS, PORT KLANG

Capt. Subramaniam presented a token to MV Trans

Harmony 1’s Master to mark their maiden voyage to

Port Klang

From left: Mr. Vijayaindiaran Viswalingam,

AGM (Corporate), PKA, Mr. Elson Wee,

Director Marine Operations, Hapag Lloyd

(Region Asia) , Mr. Nemmara Subramanian,

Country Manager,Hapag Llyod Malaysia, Mr.

Henner Meyer, Senior Director Operations,

Hapag Llyod (Region Asia), Capt. K.

Subramaniam, GM PKA, Mr. Matthias Korthals,

Senior Director, Global Service Procurement,

Hapag Llyod, Mr. Daniel Braune, Head of

Global Procurement, Hapag Llyod, Mr. Joern

Springer, Head of Fleet Support Centre,

Hapag Llyod, Capt. Kamal Ariffin Idris, AGM

(R) PKA.

Capt. Subramaniam presented a token of

appreciaton to Mr. Joern Springer, Head

of Fleet Support Centre, Hapag Lloyd

The meeting focused on ways to

strengthen the regional cooperation

E-GATEWAY 01/2018

30 January 2018

Westports bags the ‘Excellence in Logistics’ award at the

Malaysia Top Achiever Awards 2017

The award was presented by YBhg Dato’ Faizul Arby Mohd

Sohor. Westports was represented by En Shah Nuzi, Corporate

Affairs Manager. The event was held at the Royale Chulan Hotel

Kuala Lumpur

1 January 2018

PKFZ welcomes Dato’ Ong Chong Yi as new CEO

PKFZ announced the appointment of their new Chief

Executive Officer, Dato’ Ong Chong Yi who succeeded

Dato’ Chia Kon Leong after his retirement.

Dato’ Ong’s appointment is pivotal in PKFZ’s strategy to

grow as a preferred distribution and value-added

processing hub in the future.

9 March 2018

NORTHPORT dialogue with stakeholders

This quarterly program has an ultimate objective to

update all stakeholders on the company initiatives as

well as to discuss issues pertaining to port infrastructure,

safety and health. There were 40 representatives from 28

government agencies including Port Klang Authority,

Royal Customs Department, National Security Council,

Klang Municipal Council, Immigration Department of

Malaysia, Public Works Department, Malaysia Maritime

Enforcement Agency, Department of Occupational

Safety and Health Malaysia, IPD Klang Utara and Klang

Selatan.

Northport’s CEO YBhg. Dato’ Azman Shah Mohd

Yusof chaired the dialogue session