AIRLINK Bimp-Eaga

Palawan and Balikpapan next on MASWings' list

Published on: Thursday, May 10, 2012

Kota Kinabalu: MASwings plans to fly two new routes, namely Kota Kinabalu-Puerto Princessa, Palawan and Kuching-Balikpapan, under its second phase of expansion to the Brunei, Indonesia, Malaysia and Philippines East Asian Growth Area (BIMP-EAGA) region.

This is apart from upgrading the existing Tawau-Tarakan thrice-weekly flight services to daily services effective July 1 and introducing a Coral Triangle Charter Flight for divers to world-class dive spots in the State, Philippines and Indonesia within the Coral Triangle (Celebes Sea).

These follow the encouraging response received from its first three destinations in BIMP-EAGA, namely Tawau-Tarakan, Kuching-Pontianak and Kota Kinabalu-Bandar Seri Bengawan, where altogether it has recorded a load factor average of 60-65 per cent. Its CEO Datuk Captain Mohd Nawawi Haji Awang, who announced this, said they expect to start flying the new Kuching-Balikpapan route, which would be thrice weekly, by the end of October.

"We are in the process of seeking approvals and clearances from the Philippine Government for the KK-Puerto Princessa route Éif everything goes well, we plan to start this new route by the end of October," he said, adding they are all very excited with these new developments.

They are also looking at aircraft utilisation aspects and adjusting timing and so on in preparing for the changes to the Tawau-Tarakan flight service schedules. The company might also increase the number of its aircraft if the need arises.

Mohd Nawawi said this at a press conference in conjunction with the MASwings BIMP-EAGA Golf Challenge 2012 at the MAS administration building in Kota Kinabalu International Airport (KKIA), Wednesday.

He said the Coral Triangle Charter Flight plan is still at a proposal stage, adding MASwings needs to have collaboration with the Malaysian, Indonesia and Philippines tourism authorities in introducing this package for divers to come to the world-class dive spots within the Celebes Sea.

"We plan to have scheduled charter flights for divers at the three world-class diving spots, each in the respective country, under one package," he said, adding they plan to have this on a weekly basis.

According to the plan, divers would first fly to Sabah where they would be brought to Sipadan island and after three to four days they would proceed to Davao in Philippines and then to Manado in Sulawesi, Indonesia.

"This is very much in the planning stage with the Sabah Tourism Board (STB) leading the processÉwe have set a six-month timeframe for this to materialise," he said.

The tourism authorities of the other countries concerned are also excited about the plan, he said.

Mohd Nawawi also commented on MASwings achievement on being named the Best MH Auxiliary Business Subsidiary Platinum Award winner Tuesday, outshining the other Malaysia Airlines business subsidiaries.

"This is something the Sabah and Sarawak communities can reflect upon because it shows that the company which has nearly 100 per cent of its staff from Sabah and Sarawak can really make it happen," he said, adding it also shows that MASwings is truly the community airline for the people of Sabah, Sarawak and BIMP-EAGA.

The company has 1,300 staff, of whom about 90 per cent are from Sabah and Sarawak, and Mohd Nawawi also pledged to bring in jets in its fleet of aircraft once its second phase of expansion has successfully achieved its objective by next year.

MASwings carried over 20,000 passengers within several months of flying to the BIMP-EAGA destinations.

Meanwhile, Mohd Nawawi said some 200 golfers from the BIMP-EAGA region are expected to take part in MASwings' inaugural golf tournament that will tee-off at Eastwood Valley Golf and Country Club Miri, Sarawak, on May 27.

Besides reinforcing its presence and entrance into the BIMP-EAGA region and marking the beginning of MASwings' involvement in staging and organising an event of grand scale in the said region, the friendly tournament is also for the Miri city's anniversary celebration.

The tournament provides three different categories - open individual, team event and VIP/guest category, he said, adding champions of the tournament will carry MASwings BIMP-EAGA Golf Challenge 2012 trophies, MASwings hole-in-one prizes which include 10 business class tickets on MASwings destinations, lucky draws and novelty prizes.

He said MASwings has also reintroduced its Golf Escapade promotion that covers extensive prestige packages for golfers all over the world.

It is to help promote golf tourism within the region.

The package will create the opportunity for business golfers to travel and play golf at an attractive price within Sarawak, Sabah, Brunei and Indonesia.

Customers would enjoy a return flight, hotel accommodation for three days two nights or two days one night stay with daily breakfast and return transfer.

Interested golfers can make their booking online via MASwings official website www.maswings.com.my.

The booking options are made convenient for golf enthusiasts when selecting their preferred courses, destinations and hotels.

Malaysian Shipping - Cabotage

Cabotage to develop domestic shipping: Bakri

Published on: Thursday, May 10, 2012

Kota Kinabalu: Deputy Transport Minister Datuk Abdul Rahim Bakri said the Cabotage Policy is maintained because it is recognised by the World Trade Organisation (WTO) as being of strategic importance to a nation.

He said this when replying to Senator Datuk Maijol Mahap and Senator Pau Chiong Ung in Dewan Negara.

He said when the policy was implemented in 1980, many countries around the world had already been applying it.

He said the Government implemented the policy to develop the nation's domestic shipping sector and also to achieve various objectives, namely:

- To abolish the country's dependence on foreign vessels which all this while has been contributing to the outflow of the nation's foreign currencies due to huge payment in the form of fraud and insurance payment

- To develop the nation's shipping sector to enable those involved to become players in the business of shipping either regionally or internationally

- To develop the shipping sector that is of a strategic dimension to the nation and part of the defence and security system where vessels could be utilised in case of crisis or emergency

However, Abdul Rahim stressed that the policy is very liberal and does not prevent any foreign vessels that wish to berth in the ports in Sabah and Sarawak to bring goods in or out.

Good Port Performance in Malaysia

Malaysia container throughput edges up in Q1

Malaysian ports recorded an increase in container throughput of 6.5 percent to 5.1 million TEUs in the first quarter compared with the same period last year, said Transport Minister Kong Cho Ha.

In a statement, he said Port Klang was the top container port in the period (January-March 2012) with a throughput of 2.46 million TEUs compared with 2.26 million TEUs in the same period in 2011, an increase of 9.1 per cent, reported Bernama Daily.

In addition, Port of Tanjung Pelepas (PTP) managed a throughput of 1.88 million TEUs for the first quarter against 1.79 million TEUs in the same period a year ago.

Kong said all ports in Malaysia experienced positive growth of between one per cent and 24 per cent, with the exception of Johor Port, Kuantan Port and Miri Port, which declined by 8.9 per cent, 6.7 per cent and 0.7 per cent, respectively.

The drop in Johor Port's container throughput was due to a 30 per cent decrease in container transhipment to the port compared with the same period last year.

As for Kuantan Port, the decline was due to empty containers as a result of lower import and export trade.

PORT OPERATOR TO OWN GARMENT BIZ

Port operator ICTSI takes over garment firm 

Port operator International Container Terminal Services Inc (ICTSI), through its Singaporean unit, has acquired a controlling stake in an Indonesian garment manufacturer, reported Business World.

In a disclosure, Philippines’ ICTSI said its subsidiary ICSTI Far East has amassed an 80 percent stake in Karwell Indonesia.
ICTSI Far East yesterday bought over 312 million shares in Karya Estetikamulia, the controlling shareholder of Karwell, for some US$2.5 million. This gave the ICTSI unit an initial 53.23 percent stake in the garment maker.

"In addition to the acquisition on May 3, ICTSI Far East also executed the purchase of 157,172,500 shares of Karwell or equivalent to 26.77 percent that are owned by several parties from the public shares," the disclosure read further.

ICTSI Far East also owns New Muara Container Terminal Services, which operates the Muara Container Terminal in Brunei, and Makassar Terminal Services, which operates container-handling equipment at the Makassar Container Terminal in South Sulawesi.
The acquisition follows the purchase by ICTSI Mauritius of a 35 percent stake in Pakistan International Container Terminal. (PICT).

PICT, which is located at Karachi port, has a maximum handling capacity of 750,000 TEUs.

ICTSI chairman and chief executive Enrique Razon, said last month that the company is also looking to acquire more port concessions in Africa, Middle East, and Latin America.

As of 2011, ICTSI is involved in 22 terminal operating concessions and port development projects in 17 countries worldwide. Of these projects, six are located in the Philippines.

The company has programmed $550 million in capital spending for this year, more than double last year's $228 million.The bulk of which or $345 million will be spent "for greenfield projects in Argentina, Mexico, and Columbia".

THE FUTURE PORT

$1m contest to design new-age port launched 

A long-awaited contest with a US$1 million top prize to design a new-age container port was unveiled yesterday, reported Straits Times.

The Next Generation Container Port Challenge, as the competition is called, had been flagged last October, sparking about 70 expressions of interest from more than 10 countries.

The heightened level of interest was apparent at the official launch yesterday at the Mandarin Oriental Singapore.

“This challenge dares participants to play the role of a port planner and submit revolutionary designs that can achieve a quantum leap in innovation, efficiency, productivity and sustainability for container ports,’’ said M. Segar, assistant chief executive (operations) of the Maritime and Port Authority of Singapore (MPA), a co-organiser alongside the Singapore Maritime Institute (SMI).

He noted that the fundamental design of container ports have not changed much since they were introduced about 40 years ago.

But global container traffic has been growing at an annual rate of five to seven percent over the past decade, leading some experts to estimate that this could lead to a doubling of global container trade within 10 to 15 years. Planners also have to take into account increasingly large container ships, economic volatility and environmental concerns.

“Given the long gestation period for port development, this means that ports have to start making plans today to accommodate tomorrow's growth in container volumes,’’ said Segar.

Participants in the contest will have to consider several operating specifications, such as an annual handling capacity of at least 20 million TEUs, round-the-clock operations and a 90 per cent berth on arrival for ships.

Individuals, companies or research institutions, based here or overseas, can take part. Consortiums can also be formed.

The winning team will get a US$1 million cash prize and there can be up to six extra commendation awards of $100,000.

Grants of $5 million have been set aside for deserving teams to pursue further research. The winning proposal will be announced at next year's Singapore Maritime Week.

Details of the contest can be found on the SMI's website.
Some observers said the port challenge could throw up ideas for a new port development in Tuas.

The land lease at the port terminals in Tanjong Pagar, Keppel and Pulau Brani expires in 2027, and the Government's Economic Strategies Committee has recommended the development of a new waterfront city in Tanjong Pagar after that.

It also suggested looking into a long-term proposal to develop a consolidated port in Tuas, with enough handling capacity to ensure ongoing competitiveness.

One likely entrant is Halcrow, a London-based infrastructure consultant that is a unit of conglomerate CH2M Hill.

Julian Johanson-Brown, director of ports and maritime at Halcrow, flew into Singapore just to attend the official launch.
“When I first saw the challenge in London, I just couldn't stop thinking about it,’’ he said. “You get caught in the day job, you think about providing solutions for your current clients, and there's often little time to really explore this kind of opportunity.’’

A330 MRTT sets RAAF passenger record 
By:   Greg Waldron Singapore 

An Airbus Military A330 multi-role tanker transport (MRTT) has carried the largest passenger load in the history of the Royal Australian Air Force.

The aircraft, flown by 33 Sqn, carried 220 officer cadets and 14 crew on a 2h flight out of RAAF Fairbairn, says Airbus Military in a statement.

"The sortie was part of the squadron's introduction into service of the KC-30A, which is capable of carrying 270 passengers in the configuration selected by the RAAF," says Airbus Military. In RAAF service the A330 MRTT is designated the KC-30A.

A key objective of the flight was exploring the procedures and logistics involved in carrying a large passenger load.

The previous passenger record was set in 1999, when an RAAF Lockheed Martin C-130 Hercules carried 180 passengers during a humanitarian relief mission in Indonesia.

The aircraft has also commenced hose-and-drogue aerial refuelling trials with Boeing F/A-18 aircraft operated by regular squadron pilots. Initially the trials were restricted to fighters flown by test pilots.

In March Airbus Military said it will promise Australia more A330 MRTT conversion work if Canberra purchases 10 C-295 transports under its Air 8000 Phase 2 requirement and a sixth MRTT. The C-295's rival for the first requirement is the L-3 Communications C-27J.

Qantas Defence Services in Brisbane has played a key role in A330 MRTT conversions, with the service's fifth and final aircraft currently being modified.

"As a quid pro quo, the acceptance of both offers [by Australia] would allow Airbus Military to commit to additional MRTT work in Australia for international customers, including deep level maintenance/MRO [maintenance, repair and overhaul], thanks to a secure industrial base," said Airbus Military.

Airbus Military sees strong potential for the A330 MRTT in the Asia Pacific. In India the type is competing against the Ilyushin IL-78MK for a six aircraft requirement. The aircraft was also on static display at recent air shows in Malaysia and Singapore.

AVIATION AND RISING FUEL PRICES

Chart of the Day: The Real Cost of Rising Gas Prices
by Adam English, Associate Editor, Inside Investing Daily

If you think high gas prices are eating into your bottom line, try running an airline.

In 2012, the fuel bill for airlines is expected to be around $200 billion. That would account for more than 30% of total operating costs.

In the end, we all must pay the price.

By comparing oil prices to airline fares we can get a good idea of how the average passenger is getting hit by rising fuel costs.

A 12.1% increase in a six-month period last year was painful enough... but with oil prices predicted to stay above $100 per barrel throughout 2012 and a 4% rise in fare costs since the beginning of 2012 it will only get worse.

Southwest Airlines, the most consistently profitable U.S. carrier, has already announced that its first-quarter profits will be wiped out by rises in fuel costs.

As oil approaches $120 per barrel, airlines have no choice but to start making drastic changes to their businesses.

Airlines are already purchasing more efficient planes as quickly as their revenue allows. Routes are being dropped and passengers have fewer direct flights to anywhere except a major hub.

With crude prices creeping up past $107 per barrel, we can expect to pay through the nose for less-convenient routes well beyond the summer vacation season.

The only other possibility is a new round of airline bankruptcies.