10th March 2008

The Star Maritime

Seaports to become part of supply chain

Seaports are expected to be integrated into the supply chain, in line with the growing emphasis on door-to-door delivery of cargo instead of port-to-port, said Maritime Institute of Malaysia research fellow Nazery Khalid.
 
“Malaysian ports are not exempted from this trend and should position themselves to act more as transit points of cargo providing value-added services than merely a place where ships call.
 
“The growing emphasis on developing multi-modal linkages to enhance the competitiveness of a trade-dependent nation like Malaysia will inevitably train the focus on ports which are critical components in facilitating the nation’s trade,” he told StarBiz.
 
Nazery said trade imbalance between Peninsular and East Malaysia needed to be addressed so that the ports in the country could reach their full throughput handling potential.
 
“As it stands, for every three containers leaving Peninsular Malaysian ports to Sabah and Sarawak, two will come back empty. This partly contributes to the high freight rates and high inland transportation costs between the two regions.
 
“Unless the trade, economic and development disparity between them is addressed, this situation is likely to persist,” he said.
 
Going forward, he said, opportunities existed in the free zones of several local ports, which had the potential of enhancing further Malaysia’s role as a regional distribution centre.
 
“The efforts of Port Klang, Port of Tanjung Pelepas and Penang Port to establish such zones within their premises as a strategy to provide value-added services to their users are laudable and should be given due support by local manufacturers and business entities,” he said.
 
Nazery added that other Malaysian ports should take the cue from such a move to present a package of attractive investment opportunities and growth plans to draw and raise capital for their expansion plans.
 
“This is all the more pressing, given that shipping lines and other port users are increasingly looking for a comprehensive range of services in deciding their ports of choice,” he said.
 
According to Nazery, it will be critical for Malaysia, whose economic prosperity depends a lot on the efficiency of its trade infrastructure, to adjust and respond to fast-changing trends and market conditions that affect trade transport.
 
“This is even more evident in the maritime sector that facilitates much of the country’s trade and is a key thrust for our overall competitiveness as a trading nation,” he said.
 
“The intense competition for ports to attract cargo and the never-ending pursuit of shipping lines for operational efficiency and economies of scale exert tremendous pressure on Malaysian ports to provide the best, most effective services at all times,” he said. 

  
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