STANDARDISED and simplified port charges, further development of secondary maritime services and value-added facilities will further spur Malaysia to becoming a true maritime nation.

Federation of Malaysian Port Operating Companies chairman Tan Sri G. Gnanalingam said it was vital to tap the full potential of the seven times multiplier effect which ports provided.

He said the shipping and port policies required in the future included having value- added services and distriparks to further add to the country’s invisible earnings.

“This will happen when the Pulau Indah Free Trade Zone is fully developed.

“We can standardise and simplify port charges like the airport industry where one ticket pays for all the services of both the airlines and the airports.

“We also need to exploit further the ship repair and ship service and spare parts industry.”

Gnanalingam, who is also Westport executive chairman, said besides geographical and physical attributes, the key ingredients necessary for a country to become a maritime nation were capacity, productivity and deregulation.

“Malaysia has an ideal location not only because it is a peninsular but also because 40% of the world’s vessels go through the Straits of Malacca.

“In terms of physical attributes, it not only has the natural depth of water to accommodate the largest vessels in the world but is sheltered by an island negating the need for breakwater which can sometimes cost three times more than the port itself.

“In 1995, the whole country handled only 2.5mil boxes. Today it is close to handling 10mil boxes.

“This is only possible because we have built the capacity to handle 16mil boxes so that utilisation will at least be 65%.”

Gnanalingam added that to sustain growth, ports needed a supply-driven philosophy, since port development required a long construction and gestation period.

“We can have the location, physical attributes and capacity but if we do not have the capability to turnaround vessels, we will only have the hardware and not the software.

“Productivity means a berth on arrival, fast turnaround and despatch of vessels with at least 80 moves per hour on the average,” he said.

Gnanaligam said the relaxation of bureaucratic controls was also essential, and in Malaysia, government departments like Customs and Immigration had co-operated well to reduce paperwork and processing time.

He said there were many parts of Asia and Africa today where shipping lines feared the archaic controls by many government agencies.

Gnanalingam said there was a need for deregulation so that tariffs could be simplified and standardised.

“Tariffs are determined by market forces and competition, not by regulation. For example DHL and Fedex will not operate in Malaysia if they have to adhere to the postal tariff.

“Tariffs can also determine the quality of services provided such as First Class or Second Class on trains or First Class on airlines.

“The hotel industry is not regulated but classified in terms of five-star or four-star hotels, leaving the customer to decide what he wants.

“Tariff also has a viable equation whereby you can have 100% market share with very low tariff leading to bankruptcy or very high tariffs, which will result in 0% market share since shipping lines have alternatives.

“We are fortunate that the government has the right priority and has given the industry appropriate support because we handle the inventory of the nation.

“Our ports also need priority attention to remain the 17th largest trading nation since 95% of trade is by sea.”