Westport in Port Klang has grown from a green field to a leading port in the country in terms of developments and container throughput. Westport executive chairman Tan Sri G Gnanalingam spoke to NATHANIEL XAVIER on the port's performances, challenges and future plans.

Q: How did Westport perform this year? What were the volumes handled from January to October 2003 compared to the same period last year?

A: This year has been a good year, in terms of volume and we are looking at double-digit growth of at least 10% for the whole year.Our productivity has improved tremendously with current average hovering close to 30 moves per hour (mph), in many cases, we have also achieved more than 30 mph.

This has led to a faster turnaround time which has enabled our berth occupancy rate to be currently at 35%. Total container volumes from January to October this year was 1.91 million TEUs compared to 1.69 million TEUs last year, an increase of 13%. Local boxes recorded 614,000 TEUs against 557,000, a 10% growth while transhipment was 1.21 million boxes representing an increase of 13% compared to 1.06 million TEUs.

Till October, there were 3,480 vessel calls compared to 3,160 the same time last year, a 10% increase. We project to handle 8.6 million tones of conventional volume, from 8.2 million tones last year. Till October, we recorded 7.2 million tonnes.

For Dry Bulk, Westport handles 70% of Port Klang's market share and volumes for the first 10 months are 3.22 million tones. Liquid bulk is expected to reach 3.2 million tones this year, from 2.6 million tones last year.

Till October we have already hit 2.63 million tones. This positive trend is expected to continue with our customers' expansion plans. There is also a greater awareness of our liquid bulk facilities with more investors looking for land near the facilities. We are in the midst of constructing a new wharf (LBT4) to cater to this future growth.

Q: What were the effects of two major challenges this year namely SARS and the Iraq war on West Port terminal's operations, revenue, liftings, etc?

A: This year has been a good year in spite of those two events, the general up trend and double digit growth in all categories speak for themselves.

Q: What are West Port's plans for next year in terms of throughput projection, growth, new services, and others?

A: For container our projection is 2.8 million TEUs, an increase of 16% over this year's figures. The main concentration will be on local and regional boxes. We are confident and positive that this projection is attainable because of the following;

·CMA-Lloyd Triestino has launched the Adriatic Sea Service,

·China Shipping Container Line (CSCL) will replace the current 5,600 TEU capacity vessel with bigger vessels,

·Westport will also become CSCL's regional transhipment hub for the South Sea,

·Goldstar and Orient Shipping Service have jointly introduced the Indonesia-Bombay Express (IBX service),

·A new East Malaysia service by Trans West Shipping, and;

·Most of Westport's main lines are expanding their services.

For conventional cargo, we are targeting an overall volume of 10.5 million tones, a 22% growth over this year's projection, contributed by all sectors of the conventional business, which is break bulk, dry bulk and liquid bulk.

Q: How much investments in the terms of infrastructure, new equipment, etc are planned for next year? What are the new phases and berth expansions that will be ready by next year?

A: Part of the soft loan from the government will be used for construction of the following;

a) Container Terminal (CT) 4 wharf, which will start in 2004 and expected to be completed by 2005,

b) CT4 yard to be completed in 2004,

c) Container gate extension and main access upgrade (three lanes). This will be built by 2004,

d) Container freight station building and administration building at CT4 which will also be ready next year (2004), and;

e) LBT4, which has already started construction and finished in 2004.

Our investment for port expansion in terms of terminal equipment is RM150mil.

Q: How do you see the port developments in 2004? What are some of the anticipated trends, new markets, competition and challenges?

A: Some of the trends in 2004 include the cargo expansion in China, Middle East and the Indian subcontinent and we also expecting cargo consolidation services.

As for challenges, vessel feeder charter rates have increased, but ocean/freight rates remained, so this needs to be addressed.

There will also be the threat of vessels making direct calls to Jakarta, causing lesser transhipment at Port Klang.

Therefore some of the measures we need to take include ensuring Port Klang attracts more transhipment boxes.

This can be achieved by having more feeder services calling, offering competitive rates, boosting efficiency of ITT (Inter Terminal Transfer) and having a shorter lead time via centralised planning arrangement.

Q: New security rules like the ISPS Code will come into force in July 2004. What measures is West Port undertaking to ensure compliance and preparedness?

A: In terms of physical requirement, these include upgrading CCTV surveillance both at the entry and exit points at both the container and conventional terminals.

We have also integrated all surveillance systems to a one-stop control centre, boosting up additional fencing as required by contracting government, upgrading detection system (which comprise metal detector, walk-through detectors, explosives detector, gas detectors, dangerous substance detection system), e-Security patrolling system, new waterfront patrolling boat and the Smart Card Security System.

Q: What are some of the issues in the port and shipping industry that you would like to see resolved?

A: As mentioned earlier, vessel feeder charter rates have increased, however ocean/freight rates remain. This needs to be addressed.

Secondly, some tariffs need urgent review, such as the concession on timber. This concession had been enjoyed by industry players for the past 22 years and needs to be updated to reflect current-day tariffs as ports are unable to have returns on investments based on the existing concessions.

In the case of vehicles, importers pay RM1.25 per unit for the first three days and RM2.50 per unit after three days. Based on this, some importers would use the port as a means of cheap storage for their imported vehicles.