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Nazery Khalid
Port Klang Authority Celebrating 50 years of Excellence
Logistics Forum : Asia The Engine for Growth
1-2 July 2013

Making good better :
Some thoughts on elevating Port Klang to
attain greater heights
Presentation objectives
To look at the state of play at Port Klang and
its operating environment.
To share some thoughts on how to make Port
Klang a more competitive port and to attain
its ambition of becoming Asias preferred
logistics hub.

State of play

Port Klang has been growing in capacity, number
of ship calls and throughput volume handled over
the past decade.
Its operating environment is challenging i.e.
sluggish global economic growth, rising
competition from other ports etc.
However, there is bright prospect for Port Klang
to handle more business owing to its location,
advantages and attributes.
Port operating environment dynamics

Shipping lines attaining economies of scale : M&A,
growing vessel size, involvement in logistics.
Emergence of new shipping routes and hub and
spoke port system arising from MLOs strategies.
Shipping lines investing in terminals, logistics cos.
Demand by port users for value-adding services.
Aggressive port development and expansion.
Regionalization, liberalization, globalization.
Impact of global recession and overcapacity.
Rising operation cost of shipping lines.
Focus on security & reducing carbon footprint.

What Port Klang is today

Worlds 12
th
busiest container port, handling 9.9
mil. TEU (4.1% growth from 2011).
Malaysias national load center. Handled half of
Malaysias container throughput in 2012, making it
the nations busiest container port.
Handled more transshipment containers (6.3 mil.
TEU in 2012) than domestic (3.6 mil. TEU in 2012).
Connected to > 500 ports in > 120 countries.
Adopts supply-driven expansion strategy and has
current capacity to handle 14 mil. TEU. ( to be
increased to 20 mil. TEU by 2016).

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What Port Klang wants to / should be
Become Asias preferred logistics hub.
Attract main line operators (MLO).
Expand connectivity.
Enhance efficiency and productivity.
Handle bigger throughput volumes
Provide more value-adding services.
Charge competitive rates that commensurate
with its infrastructures and services.
Increase and strengthen strategic alliances.
Diversify into managing other ports esp. abroad.
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SWOT analysis of Port Klang


Strengths Weaknesses
1.
Location is Strategically placed
2. Good infrastructures with
qualityservices, and favorable
features i.e. deep draft.
3. Strong cargo base.
4. Good connectivity and levels
of efficiency and
productivity.
5. Strong support from
logistics players
and Government.


Has long term strategy.
1. Archaic tariff structure.
2. Terminals are competing
strongly with one another in
similar markets.
3. Not developed in a
structured, holistic way.
4. Global connectivity not
extensive enough.
5. Yet to venture into port
management business.
6. Quality of roads and rail
issue.
SWOT analysis of Port Klang


Opportunities Threats
1. Capitalizing on growing
intra-Asia, intra-ASEAN and
transshipment trades.
2. Capitalizing on full capacity
of Singapore Port.
3. Capitalizing on growing
shipping traffic in Straits of
Malacca .
4. Managing ports in other
countries.
5. Expanding strategic alliance.

1. Competition from other ports
and private jetties.
2. Changing trade / production /
supply chain patterns.
3.
Economical impact on
port business.
4. Opening of alternative routes
i.e. Arctic Route.
5.
Other external develop-

ments i.e. high oil cost,
climate change, security etc.


Some questions for Port Klang

Does it have what it takes to be a megahub port like
Singapore and Shanghai?
How vulnerable is it to the vagaries of market dynamics
and volatility? How can it hedge against it?
How flexible is Port Klang to adjust to changes
in its operating environment?
Would Port Klang be better off acting as a spoke
port feedering off the megahub ports?
Has the time come to seriously consider merging
Port Klangs two terminals?
Can Port Klang be positioned to influence trade flow?
What kind of port will it be in 50 years time?

My thoughts

The region cannot accommodate too many hubs.
Port Klang should focus on enhancing its
efficiency, productivity and customer service and
more success will come naturally.
More important than trying to become a megahub is
to benchmark itself against best-in-class ports.
Port Klang has the attributes to attain greater heights
but it needs to beef up its branding.
By capitalizing on its strengths, overcoming its
weaknesses, grabbing the opportunities,
confronting the threats, and thinking bigger, Port
Klang can become better and achieve more.

The way forward for Port Klang

Enhance service delivery by adding more value- adding,
dedicated services to stand out from the competition.
Work on areas which result in maximum impacts on
the ports margins and competitiveness i.e. ship/cargo
turnaround time, throughput volume.
Work at retaining customer loyalty and attracting new
ones by finding out what they want out of the port and
delivering it to them. Be more customer-centric!
Work closely with terminal operators to promote Port
Klangs strengths, advantages and vision.
Enhance branding as the port of choice that provides
its users with customer service excellence,
convenience, connectivity and competitive advantage.







nazery@mima.gov.my
www.mima.gov.my

Terima kasih
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A smooth sea never makes a
skilled sailor