PENANG PORT

Monday January 23, 2012

Penang Port sees slow 2012

By DAVID TAN
davidtan@thestar.com.my

GEORGE TOWN: Penang Port Sdn Bhd is targeting for the container cargo handled at its North Butterworth Container Terminal (NBCT) to hit 1.278 million 20-ft equivalent units (TEUs) this year, an increase of about 7.4% from last year.

Penang Port chief operating officer Obaid Mansor told StarBiz that 2012 was expected to be a slower year due to the bleak global economic outlook.

“We expect a slower growth of 7.4% compared with 8.4% in 2011. Although the China market is slowing down, we can still rely on intra-Asian trade among large economies such as Indonesia and India for growth.

“Thus, for the first quarter 2012, we expect the volume of container cargo handled at NBCT to grow about 4% over last year’s corresponding period, which handled 278,161 TEUs,” he said.

In 2009, at the peak of the US subprime crisis, the volume of container cargo handled at NBCT grew about 3% over 2008, according to Obaid.

“Because growth this year is expected to be slower, we will maintain our workforce level at 1,600,” he added.

About 75% of the cargo handled at NBCT is full container load, which is expected to generate 70% of Penang Port’s revenue this year.

Obaid said the export and import of special glasses for solar panel manufacturing was on the rise, as more international solar power manufacturing companies were moving to Malaysia.

“We are also seeing a growth in rubber-based products being exported and imported out of NBCT,” he said.

Obaid said eight units of rail-mounted gantry crane at the NBCT were now being installed for operations at the end of March.

“These cranes will increase the speed of transferring container cargo to NBCT and to the vessels,” he added.

On the implementation of new port tariffs, Obaid said the review was now being studied by Penang Port Commission.