Port Klang, strategically positioned and equipped with
state of the art modern infrastructure, plays a very important role in the
facilitation of imports, exports and transhipments for the Asian region. Under
the ASEAN Economic Community (AEC), which envisions a free flow of goods among
ASEAN member countries, an increase in competition among ASEAN ports is
expected. As a result, cargo flow configuration might change in ASEAN.
Mr. Igwe Kingsley Onyekachi, from Malaysia University
of Science and Technology (MUST), investigated the impact of AEC on cargo flows
through Port Klang for his Master thesis. He presented his findings during his
VIVA this month at MUST. The coming 10 years Port Klang will most likely maintain
its rank as the second transhipment hub port (after Singapore) in ASEAN.
However, according to Mr. Kingsley, intensive competition can be expected from
emerging ports that are being developed in ASEAN, eating away from its
contestable hinterland.
In particular, Pak Bara deep-sea port in Thailand is a
port to watch due to its close proximity to Port Klang. The deep-sea port in
Pak Bara is part of the landbridge project in southern Thailand to connect the
eastern and western coasts of Thailand so that freighters from Europe can
unload cargo in Pak Bara port (saving over 3,000 kilometres) without going to
round the Strait of Malacca to arrive at ports in the Gulf and the South China
Sea. It shares the same contestable hinterland on the northern peninsular
Malaysia with southern Thailand and has a more competitive strategic location
for ocean freight from/to India, Middle-east, Europe and Africa especially transhipment
cargo which can be ferried by rail to/from China and the greater Mekong region.
Other new port developments in planning are Dawei deep-sea port (Myanmar) and
various new port developments and extensions in Indonesia (in particular
Sumatra). These ports could become significant players in the transhipment business
as well.
Mr. Kingsley proposes to strengthen the control of
Port Klang’s hinterland through improving intermodal and multimodal
connectivity: rail-sea, road-sea and feedering services with Sumatra, Thailand,
Brunei and India. Second, he proposes the development of mega distribution centres
located in Port Klang, hereby locking in value added logistics activities in
the port as well as its position as a key node in the trans ASEAN transport
network.
Amongst others, the following policy recommendations
were made in order to strengthen the competitive advantage of Port Klang:
§ Enhance investment policies for local and foreign
investors in its port cluster;
§ Stimulate the development of a strong and complete industrial
and logistics clusters in Port Klang;
§ Develop a comprehensive range of maritime ancillary
services to strengthen its maritime supporting industry;
§ Stimulate innovations in and modernisation of the
Malaysian transportation sector: trucking, rail and (short)sea;
§
Improve
intermodal and multimodal connections with Southern Thailand, Myanmar and
Sumatra.
In order to strengthen Port Klang in AEC over the
coming year, it needs a continuous investment in and innovation of its port and
its logistics cluster. This requires an intensive collaboration between Port
Klang, its users, the logistics industry, government, universities and research
institutes. This does not mean that the ball is in the court of the government.
Both the government and private sector are each fully responsible in enhancing
the competitive advantage and business for Port Klang as a hub port in ASEAN.
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