The Organisation of Ports in Sabah

Port operations are a vital component of maritime trade, with compliance in environmental and safety practices being paramount for sustainable operations. Port operations constitute an essential pillar of Sabah's regional economy, prominently featuring Sabah Ports Sdn. Bhd. and POIC Ports as key players. In Sabah, the regional economy is heavily reliant on port operations. Their licensing agreements set the foundation for their operations, roles, and responsibilities.

Ports in Sabah are organized and managed to cater to various types of maritime activities, ranging from container handling to oil and gas services as well as palm oil products. The landscape of port management and operations includes both publicly managed and private ports, reflecting a blend of government oversight and private sector efficiency aimed at enhancing the state's maritime infrastructure and trade capabilities. Private ports in Sabah, often specialized and developed to cater to specific industries or economic zones, play a crucial role in the region's economic development.

Aside from a defined ports structure as being either a public or a private port, there are also proliferations of what are termed as 'Private jetties' in Sabah to serve a variety of purposes, ranging from supporting the operations of specific industries to providing access for private resorts and tourism activities. These jetties are essential components of Sabah's maritime infrastructure, facilitating efficient transportation and logistics, particularly for sectors such as palm oil, timber, aquaculture, and tourism.

Sabah Port Authority Enactments

The Sabah Ports Authority within the context of its Enactment (17 of 1981), act as the landlord of all wharves, servicing ships on a common-user basis, and oversees warehouses that serve as transit storage for goods. The Privatisation Enactment (2 of 1998) marks a significant shift in the management of Sabah’s ports, redefining the Sabah Ports Authority (SPA) from a direct operator to a regulatory and oversight body.

Privatisation Agreements

The Sabah Ports privatisation agreement refers to the transfer of operational rights and responsibilities of ports in Sabah, Malaysia, to a private entity. This process typically involves the government of Sabah entering into an agreement with a private company, allowing the company to manage, operate, and possibly develop the ports in exchange for a concession period. The objectives of such privatisations are often aimed at improving efficiency, attracting private investment, enhancing port infrastructure, and providing better services to port users.

The privatization agreement has significantly transformed the operational landscape of Sabah's ports, redefining the roles and responsibilities of the Sabah Ports Authority (SPA). As the regulatory body, SPA's functions have been adjusted to focus more on oversight, strategic planning, and policy development, ensuring that port operations align with broader economic and environmental goals.

Regulatory Oversight

SPA's paramount role involves establishing comprehensive regulations and standards to govern port operations, focusing on efficiency, safety, security, and environmental protection, ensuring all port operators comply with these standards.

Strategic Planning and Policy Development

SPA engages in strategic planning and policy development to guide the growth and development of port infrastructure and services, aligning with broader economic and developmental goals.

Licensing and Concession Management

The authority is responsible for issuing licenses to port operators and managing concessions, ensuring that these entities meet the operational, safety, and environmental standards set forth by SPA.

Infrastructure Development Oversight

SPA oversees and approves major infrastructure development within ports, ensuring projects align with strategic objectives and operational requirements, and meet the future demands of trade and logistics.

Environmental Protection and Sustainability

SPA enforces environmental standards, promoting sustainable practices among port operators to minimize ports' environmental impact and ensure compliance with national and international environmental guidelines.

Safety and Security Enforcement

Ensuring the safety and security of ports and maritime operations falls under SPA's remit, including the implementation of security protocols in line with international maritime security standards.

Stakeholder Engagement

SPA plays a crucial role in mediating and facilitating dialogue and collaboration among various stakeholders, including port operators, government bodies, and local communities, to ensure port operations are aligned with public and economic interests.

Monitoring and Performance Evaluation

SPA monitors the performance of port operations, conducting evaluations to ensure port operators meet efficiency and service quality benchmarks, and taking corrective actions when standards are not met.

Privatised entities

In Sabah, two distinct entities have come under a concession agreement with Sabah Ports Authority, i.e., Sabah Ports Sdn. Bhd. and POIC Ports playing significant roles. Their licensing agreements set the foundation for their operations, roles, and responsibilities.

Legal and Regulatory Framework

Sabah Ports Sdn. Bhd. operates under a comprehensive licensing agreement that outlines its duties and rights in managing several ports across Sabah. This agreement is regulated by the Sabah Ports Authority.

POIC Ports, particularly in Lahad Datu, are governed by a different set of agreements and regulations, tailored to the specific industrial and developmental goals of the Palm Oil Industrial Cluster (POIC).

Scope of Operations

Sabah Ports Sdn. Bhd. is licensed to manage a wide range of port operations, including container handling, bulk, and liquid cargo, and providing logistic solutions.

POIC Ports have a more focused operational scope, primarily supporting the palm oil industry and related sectors, including the facilitation of raw materials and processed goods.

Roles and Responsibilities

Sabah Ports Sdn. Bhd. is responsible for ensuring the efficiency, safety, and security of port operations across its managed ports.

POIC Ports have a unique role in integrating port operations with the industrial needs of the POIC, emphasizing on facilitating the export of palm oil products and related commodities.

Compliance and Standards

Both entities are required to comply with national and international maritime standards, but POIC Ports may have additional compliance requirements related to environmental and industrial standards due to their specific focus on the palm oil sector.

Impact on Regional Development

Sabah Ports Sdn. Bhd. plays a crucial role in general economic development, enhancing trade and connectivity for a broad range of industries in Sabah.

POIC Ports are strategically important for the development of the palm oil industry and related sectors, contributing to job creation and economic diversification in targeted regions.

Challenges and Opportunities

Sabah Ports Sdn. Bhd. faces challenges in managing diverse operations and meeting the growing demands of international trade. Opportunities lie in expanding port capacities and enhancing technological integration.

POIC Ports encounter specific challenges related to industrial growth and environmental sustainability. There are significant opportunities in leveraging the growth of the palm oil industry to expand port and logistic services.

As an overview, the licensing of Sabah Ports Sdn. Bhd. and POIC Ports reflects their distinct roles in Sabah's maritime and industrial landscape. While Sabah Ports Sdn. Bhd. is focused on a broad range of port operations essential for the state's overall economic development, POIC Ports are specialized, aiming to support and stimulate the growth of the palm oil industry and related sectors. Understanding these differences is crucial for stakeholders to navigate the opportunities and challenges within Sabah's maritime and industrial sectors effectively.

Summary

Under the Privatisation Enactment, SPA's functions and responsibilities have evolved to ensure that the privatization of port operations aligns with Sabah's strategic interests. Through regulatory oversight, strategic planning, and stakeholder engagement, SPA ensures that privatized ports operate efficiently, safely, and sustainably, contributing to the region's economic development and competitiveness in the regional maritime industry.

As for private jetties operations in Sabah they continue to be under license given by SPA. Some of them will graduate into a full bloom private ports depending on the nature and volume of trades managed. A couple may be fully operated commercially as a public port looking at the future of the economy of Sabah taking advantage of development within the BIMP-EAGA Regions especially on the move of the Indonesian capital to Nusantara in East Kalimantan. END.

 

A Transport Masterplan for Sabah

I have elaborated in my previous article on the setting up of a Sabah Logistics Council (SLC). This is a critical precursor towards a transport masterplan for the state. I am now attempting to fast forward a situation where on the successful setting up of the SLC, what would it take to bring us to a transport masterplan. 

A transport masterplan is a comprehensive and long-term strategy that outlines the vision, goals, and objectives for the development and management of a transportation system within a specific region or city. The underlying factors considered in formulating a transport masterplan can vary depending on the local context and specific needs, but here are some common factors:

 

1.     Population Growth: Understanding the projected population growth in the area is crucial as it directly impacts transportation demand. The masterplan should account for the anticipated increase in residents and their commuting patterns.

2.     Existing Infrastructure: Evaluating the current transportation infrastructure, including roads, highways, railways, airports, and public transit systems, helps identify strengths, weaknesses, and areas in need of improvement or expansion.

3.     Mobility Patterns: Analysing existing travel patterns, including commuting flows, peak travel times, and traffic congestion hotspots, provides insights into the current transportation needs and challenges. This information can guide the development of strategies to enhance mobility and reduce congestion.

4.     Land Use and Urban Planning: Coordinating transportation planning with land use and urban planning is crucial. Integrating transportation considerations into land use decisions helps create walkable neighbourhoods, encourages transit-oriented development, and reduces the need for long-distance travel.

5.     Environmental Sustainability: Promoting sustainable transportation solutions is essential for reducing greenhouse gas emissions, improving air quality, and minimizing the environmental impact of the transport system. The masterplan should incorporate strategies to encourage the use of public transit, walking, cycling, and electric vehicles.

6.     Economic Development: Recognizing the role of transportation in supporting economic growth is important. The masterplan should consider the transportation needs of businesses, industrial areas, commercial centres, and logistics hubs to ensure efficient freight movement and facilitate trade.

7.     Technological Advancements: Keeping abreast of emerging technologies and transportation innovations is crucial for a forward-looking masterplan. This includes considering intelligent transportation systems, electric and autonomous vehicles, mobility-as-a-service (MaaS) platforms, and data-driven approaches to optimize transportation operations.

8.     Stakeholder Engagement: Engaging with various stakeholders, including government agencies, transportation operators, community organizations, businesses, and the general public, ensures that the masterplan reflects diverse perspectives, needs, and aspirations. Collaborative decision-making and input from stakeholders can lead to more effective and widely accepted transportation solutions.

9.     Funding and Resources: Developing a realistic financial framework to support the implementation of the masterplan is essential. Assessing available funding sources, potential public-private partnerships, and exploring innovative financing mechanisms can help ensure the feasibility and sustainability of the proposed transportation initiatives.

 

By considering these underlying factors, a transport masterplan can guide the development of a transportation system that is efficient, sustainable, and responsive to the needs of the community it serves and for improvement of the supply chain industry in general. 

There are many examples of transportation master plans in our country. For instance:

•           Penang Transport Master Plan (PTMP) is a comprehensive and well-connected transport strategy that sets the framework for an integrated and modern transport system in Penang, Malaysia. It covers both land and sea, comprising various transportation systems and services such as an elevated light rail transit (LRT) line, bus rapid transit (BRT), tram, taxi, e-hailing, ferry and water taxi.

•           National Transportation Master Plan (NTMP) is a policy document that guides the development of the logistics industry in Malaysia to further improve its productivity and competitiveness with the vision to become “The Preferred Logistics Gateway to Asia”. The NTMP outlines five strategic shifts and 21 action items to be implemented.

•           National Transport Policy (NTP) 2019-2030 is an overarching policy that provides direction for relevant federal ministries and agencies as well as state governments and local authorities in Malaysia to develop and streamline transport initiatives towards a common goal. The NTP aims to enhance mobility for all Malaysians while ensuring environmental sustainability. 

As for now the overall situation in the state as regards the logistics and transport industry is as follows:

1.     Sabah lacks the basic transport and logistics infrastructure to serve its economics needs. There is a need to put things in perspective before we can embark upon a comprehensive masterplan.

2.     There is critical need for data support for any planning to take place. Data from the supply chain industry is crucial towards any planning efforts to take place.

3.     The need to set up a body such as a Sabah Logistics Council (SLC) is crucial to take stock of things and to put things in perspective to enable analysis of the status of ongoing activities.

4.     There is no coordinating body to address issues faced by the industry especially of logistics players in providing efficient services. This is where the SLC role will serve as a one roof institution to collect data and information and to harness them and recommend for ways of resolving them.

5.     The prime objective is to put things in perspective so that we can put up the basic needs of the economy which is to facilitate trade.

6.     With trade facilitation mechanism in place, it would be timely for a Transport Masterplan to be mooted.

7.     It is therefore crucial that all stakeholders need to play their roles to ensure that we have the necessary data collected and collated to move forward efficiently.

These are crucial needs towards an eventual transport masterplan for Sabah. With a masterplan we should then be able to steer and facilitate trade and the economy in a planned and sustainable manner. This way we will be better able to channel the finances towards a cohesive transport infrastructure development. Budgeting towards harnessing transport needs of the community will be well directed towards a cohesive transport infrastructure development and improve mobility and improving the supply chain economy.

We take note of two master plans, namely the Kota Kinabalu Public Transport Master Plan and the Traffic Improvement and Urban Transport Master Plan for Kota Kinabalu Central Business District (CBD), which will complement the bigger picture of a grand masterplan. It is therefore timely that we take such plans to a higher level covering a broader perspective of the logistics and transport industry to work towards an efficient, productive and sustainable economy for the whole state.

END.

Seaport as a Logistics and Industrial Node in Global Supply Chains

 Seaport as a Logistics and Industrial Node in Global Supply Chains 

Quoting a study entitled ‘Institutions and Industrial Development in Sabah’, published in 2022 by Firdausi Suffian, Kasim Mansur, Ika Suzieana Jamluddin, Arnold Puyok , and Azmi Abdul Majid, I found several phrases that are of profound importance when discussing about economic reforms. These are that:

i.                Industrialization is the key to structural change.

ii.              The institutions embedded with political consideration and private interests somehow has constrained the state to implement effective industrial policy.

iii.             There is scant attention on the role of institutions to take centre stage in analysing in economic growth and development.

iv.             Institutions are widely known as “rules of the game” in a society.

v.               Industrial development has wide sectoral interlinkages that have the capacity to pull the rest of the economy in all sectors.

In the foregoing article, these phrases are of profound importance when discussing the role of ports in the economic development of any country. The port as an institution are critical enablers and catalyst of the speed and impact it makes to the state economy. The critical role of the port as an institution towards the management of the economy is what spurs me to introduce the subject matter for a better understanding of its roles and functions and eventual responsibility to the state.

Seaports are points of convergence between the land and the sea of passengers and freight activities. While the marine side can involve huge geographic coverage related to global trade, the land side is related to the region and locality of ports.

 

Ports handle high volume of freight, as against other type of terminal combined.

The emergence of civilisation saw the start of trade networks which later require ports as its outlets. Ports have played a crucial role in facilitating trade and commerce across the world ever since. Although maritime transport technology has much evolved, the role and function of ports basically remain the same. Ports serve as gateways for international trade, connecting countries and regions across the world. They play a vital role in the global economy by generating employment opportunities and contributing to the growth of various industries.

It’s fascinating to see how seaports have evolved over time, and it will continue to play a critical role in shaping the future of our world. 

 

A port is traditionally defined as a transit area, a gateway through which goods and people move from and to the sea. It is a place of contact between the land and the sea that is termed as a node where ocean and inland transport systems interact, and a place of convergence for different transportation modes. Since the sea and inland transportation modes have different capacities, the port assumes the role where cargo is consolidated or deconsolidated, known as a load breakpoint.

 

In general, ports are classified into two categories, seaports, and inland ports.

 

The ports are diverse in sizes and functions. Ports also have a geographical diversity in terms of the sites being used for port activities such as rivers, bays to offshore locations and now a truly port on land called inland port.

 

The ports can be described from a supply chain perspective as being, ‘A seaport is a logistics and industrial node in global supply chains with a strong maritime link with clusters of activities directly or indirectly linked to transportation and logistics processes within global supply chains.’

 

Defining the Seaport

A modern seaport is not solely considered as a load breakpoint in various supply chains but should be considered a value-adding transit point. As nodes within transportation and logistics networks, ports have a location, whose relative importance can fluctuate given economic, technical, and political changes. This location capitalises on the advantages of a port site characterised by fundamental physical features influencing the nautical profile, such as water depth, access channels, and availability of land.

 

Categorisation of Seaports

The diversity of ports can be ascertained by their classification into various types of ports according to their specific role and functions. Ports can be categorized based on many dimensions, such as:

 

Scale. Refers to port size in terms of its area, annual cargo throughput, the size of its hinterland, the number of shipping services it is connected to, or the number of customers. The scale of a port is commonly associated with its economic and commercial importance in the market it serves.

 

Geographical attributes. Refers to the main characteristics of the port site and situation. There are various locational setting of port sites, such as in a bay, along a coastline, on a river, or in an estuary. Many sites have natural advantages, while for others, the site needs to be improved with dredging and landfills. Although a port site is fixed, its situation is relative to the main shipping lanes and hinterland, or its proximity to and interactions with cities or urban areas it served.

 

Governance and institutional settings. Refers to the terms of land ownership and the roles of institutional arrangements between the public and private sectors. Many ports are publicly owned but have terminals operated by private organizations.

 

Port functions. Refers to the range of services offered by the port, such as cargo handling, logistics, and distribution, industry, and maritime services. They are subject to competitive elements since the services offered by one port can be offered by another port.

 

Specialization. Refers to the cargo handled, such as containers, conventional general cargo, liquid bulk, dry bulk, or roll-on-roll-off cargo. Some ports are specialized in handling passenger traffic, namely cruise ships and ferries. Another specialization is based on port-centric industries such as steel plants, energy plants, automotive, or chemical industries. Logistics activities are also an important contributor to port specialization.

 

Ports serve a derived demand that can be segmented into specific markets. These markets include cruise ports and terminals, the break-bulk market, ports as complexes supplying and distributing energy, the provision and management of containers, and the cold chain technology that has allowed ports to play an active role within these supply chains, particularly with refrigerated containers (reefers).

 

One of the main driving forces of change in the port industry emerges from globalization and the shift from supply-driven to demand-driven economies. The supply-driven economy was based on economies of scale in production, standardization, and mass consumption of standard products. This approach changed as a growing individualism began to have an impact on consumption patterns. This brought about a shift to a more demand-driven economic system, combined with global production networks on the supply side of the markets.

 

I hope this information has provided some insights into the characteristics of seaports and is intended for educational purposes in helping to disseminate knowledge and awareness of the important function of a port in any economic development. We shall explore how our local ports in Sabah fare within the context discussed above in a future article. Seaports play a crucial role in the economic development of Sabah and reportedly the port operations in Sabah generated 90.1% of the operating ports total revenue in 2020   END.

 

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Catalysing Sabah's Logistics Sector: Unveiling the Sabah Logistics Council

ARTICLE FOR PUBLICATION WITH ASIA TIMES PULSE (Published on 30th Nov., 2023) Catalysing Sabah's Logistics Sector: Unveiling the Sabah Logistics Council In an era characterised by swift economic evolution and global connectivity, the significance of robust logistics and transportation systems cannot be overemphasized. Sabah, a pivotal Malaysian state, has astutely recognised the pivotal role these sectors play in its growth and competitiveness. To steer the trajectory towards progress, the state is introducing a visionary initiative - the Sabah Logistics Council (SLC). This forward-looking council is poised to redefine the logistics landscape and usher in a future brimming with potential. Championing the Vision The foremost objective of the Sabah Logistics Council is to institute a specialized body that comprehensively addresses every facet of logistics and transportation within the state. This strategic endeavour is essential for discerning the intricacies of logistical development in Sabah, ensuring the efficacious implementation of initiatives, and effectively resolving pertinent issues within the logistics domain. Moreover, the SLC will wield its influence to furnish leadership and synchronization, amplifying the overall logistics and transportation sector in Sabah. By bolstering these sectors, the state administration aims to stimulate investments, kindle economic growth, and uphold its competitive standing in both local and global arenas. Architecting a Blueprint for Success The beating heart of the Sabah Logistics Council's mission lies in crafting and executing an all-encompassing Sabah Transportation Masterplan. This strategic blueprint shall serve as the compass for enhancing the administration, operation, and proliferation of logistics and transportation infrastructure across the expanse of the state. This ambitious venture aspires to transform Sabah into a bustling logistics hub that caters to the region's internal requirements while firmly establishing itself as a commanding player in the broader logistics landscape. A Symphony of Collaboration The establishment of the Sabah Logistics Council heralds an era of heightened collaboration between governmental entities, private sector stalwarts, and other stakeholders immersed in logistics and transportation. This alliance holds the power to expedite project implementation, facilitate knowledge sharing, and harmonize efforts to optimize infrastructure growth and efficiency within the sector. Furthermore, the council assumes the responsibility of tackling pressing challenges encountered by industry players, ranging from bridging infrastructure gaps and navigating complex regulatory terrains to countering skill deficiencies. By doing so, the Sabah Logistics Council endeavours to sow the seeds for an ecosystem that propels sustainable growth and resilience. CILTM: The Driving Force At the epicentre of this transformative journey stands the Chartered Institute of Logistics & Transport Malaysia (CILTM). As the industry lead body for both the Ministry of Human Resource and the Ministry of Transport, CILTM is uniquely poised to infuse expertise, innovation, and direction into the logistical fabric of Sabah. Notably, CILTM's eminence extends beyond its role as an industry lead body; it assumes a pivotal role in the working group, ensuring its integral participation in every facet of the council's operations. A Permanent Secretariat: A Steadfast Pillar To ensure the seamless execution of its mandates, the Sabah Logistics Council will be fortified by a dedicated permanent secretariat. This administrative backbone will play a pivotal role in coordinating activities, streamlining communication, and overseeing the day-to-day functioning of the council, thereby ensuring the fulfilment of the council's envisioned objectives. Charting the Path Forward The launch of the Sabah Logistics Council marks a watershed moment in the narrative of Sabah's logistics and transportation sectors. By converging an array of stakeholders under a single banner, the council endeavours to forge a unified approach towards surmounting challenges, embracing opportunities, and forging an unprecedented era of growth. Sabah's voyage towards becoming a regional logistics powerhouse has commenced, spearheaded by the Sabah Logistics Council and further invigorated by the indomitable spirit of CILTM. Through collaboration, strategic planning, and visionary leadership, Sabah stands poised to emerge as a beacon of logistics excellence, galvanizing economic progress and elevating the well-being of its people to unprecedented heights. END. Ts Hj Ramli Amir Former President, The Chartered Inst. of Logistics & Transport, Malaysia (CILT MALAYSIA) Currently CILT International Vice President for Southeast Asia

Transport, logistics and supply chain education

Transport, logistics and the supply chain education

The words transport, logistics  and supply chain had been used very loosely in public when discussing on issues with regards to the movement of people or goods. A good many debates had ensued as a result as to which particular heading is fit for its purpose.To get things started let me just bring you to how I myself was dragged into this realm of the issue and how I slowly began to understand its proper usage in a particular circumstances and context.

After completing my Higher School Certificate  in 1972, those days we have to wait a few months until about march the next year to await for the results to be out. Those were the free time when opportunity to earn some pocket money were aplenty those days doing temporary jobs and those days even as temporary workers we can afford to jump from job to job. I was one of those. Having secured a job as a personnel clerk with Malaysia Airlines and being there for some three months, I was off to join Radio Television Malaysia to be a deejay with the English Service then. It was a very enjoyable stint spinning songs during the odd hours.  We had a chance to read news, even though it was to be a late late news, when I thought people are already fast asleep and no one is actually listening to you. That was that when good fortune strike again when opportunity arose with Sabah Ports Authority offering the position of Assistant Traffic Superintendent (ATS) with a basic salary of RM500.00 a month which in those days were the highest paying job basing on the School Certificate results. This was the actual beginning of my introduction to the transport world, not withstanding I was with MAS not long back, but it was as a backroom job. This is different as ATS as we were known then, we were at the forefront of things and directly pitched into the daily operational routines ensuring that ships are berthed, cargoes are properly handled on discharge. We also have to assure that cargo space in the godown are provided to store the incoming goods. The job is about cargo handling efficiency both on the wharf and also in the godown.

Being young and having foregone the opportunity of continuing and furthering our education after completing our School Certificate or HSC for the good money offered then, I was lucky that the desire to further my education was kept burning. It was also good that there was this Chartered Institute of Transport (CIT) based in the United Kingdom (UK) offering external course on the subject of Transport. To further our education means we have to pay our ways through correspondences courses and enter for its yearly examination as an external student. The papers were prepared and sent all the way from UK. As an external examination it was deemed tough and passes appears a rarity. It was an examination divided into four parts, with Intermediate at 2 levels and finals at 2 levels. It was accepted that passing all the levels  in four years means a creditable. By god’s grace I made it within this time frame. This was my introduction to the transport world for the movement of people and goods.

Transport

During those time, issues pertaining to the movement of people and goods were focus on the modes of transport itself ie the buses, the lorries, the ships and planes. It was a question whether there were enough ships and buses, never mind the late schedules. So the terminology of “transport” used then was apt for the point in time. It was the time of the Agricultural revolution where tools and equipment to harvest the produce were seen in numbers. And there were also great needs of trucks to transport the produce. So everything is transport for conveyance of either goods or people.

Come the early part of the Industrial Revolution there were mass production of engines and other equipment. The need to have enough number of buses and other modes of transport were satisfied. When needs are satisfied new needs will arise. What are they. An affluent society now needs not only the numbers of transport vehicles but need them as vehicle to meet an ever rising demand for convenience and comfort. It is now not enough that you have the number of buses but society now needs certainty on bus schedules. Demanding for certainties on bus schedules means that other than ensuring that the number of buses are available, it must now be available on time as per schedule. How do we ensure that the schedules are met. It can only be done with proper detailed plannings which involve a lot of backroom planning involving the workshop and mechanics to ensure buses are running smoothly all the time. Welcome to the logistics world!

The logistics system

At the time when logistics role becomes relevant to society, there was this Institute of Logistics that has been established to look after the education and enhancement of the logisticians

Remember when transport was first made available, having buses is god sent, never mind it runs late. As society is fed regularly with this service and as society becomes affluent, demand for a higher lifestyle becomes the order of the day. The society now wants a scheduled service and that failing to meet the schedule means it is a derogation of lifestyles and abrogation of responsibilities.

In the logistics system, what goes behind the machine or the vehicles performance and efficiency is the result of efficient logistics system that has taken place behind what the public see on the road. The pains and sufferings of the logisticians behind the efficient performance of the vehicles is the result of commitment of those men putting in the odd hours to ensure the bus are available for public service very early the next morning. Very little appreciation is given to this group of people by the public.

However it goes without saying that the lot more effort in ensuring bus running efficiency does cost money to maintain such services. We know every new demand of society must go along with it a cost to it. It is only fair and has been a reflection of transport and logistics costs throughout.

Transport and logistics in perspective

We have thus far seen the workings of two economic activities and what they serve in their everyday usage as perceived by the community at large. What about supply chain then. Supply chain is the management of the elements or activities on the actual transport demanded and its efficient performance as depicted by the logistics systems that goes behind the transport activities.

The supply chain

Envisage a big picture where the activity of say the production of an automobile. The production of cars has to gather all the components and raw materials that are needed to produce them. The tyres, the interior panelling, windscreens, power window components the chassis and the engines and many others has to be assembled or made elsewhere and brought to the assembly plant to be fully assembled. The production of the windscreen maybe made in other factories that specialises in making them. To move the screen to the main assembly plant one has to use transport vehicles and this aspect is rightly called the transport mode. Once the screen reaches the assembly plant it becomes another logistics items in the list of inventories kept in the warehouse of the assembly plant. How it is stored and taken out is systemised for easy identification for storing and retrievals.

Now when all parts including the screen had been fitted to form a complete car,it is ready for shipment out to their sales department that market the cars. Again the movement of the completed vehicle out of the assembly plant by using vehicular trucks that could carry up to ten cars to bring to the sales depot is a mode of transport.

Overall as a big picture supply chain management tracks down the flow of production from the ordering or procurement of parts and other raw materials factories to the main assembly plant and from there to the sales depot and finally to wholesalers and individual customers. How efficient is the whole process from obtaining of the raw materials or parts to the time when final customer got to drive the car matters in the context of supply chain management. To supply chain managers an efficient system must not allow for any hiccups along the process that may delay the delivery of the vehicles within the targeted period of production.

The Impact of specialisation

In perspective, all fresh graduates will find job that will allow them to slowly gather experience that has not been taught at school. A fresh graduate cannot be made to shoulder a responsibility which far outweigh his capability to carry out such job relying on just his school degree and no experience.

In the field of logistics graduates are exposed to the specialisation of jobs say in the warehouse where he first start as stock taker and later moved to procurements of supplies and parts. He may later be moved to other sections like the delivery section taking charge of delivery of goods as ordered by their customers.

In the banking industry, when one graduate even with an MBA, he has to start with at the front desk ie at the counter. This the usual training process as exposure for any budding banker. He may later be moved to say the loans and credit departments and so on to gather the experiences and be able to see a section if not all the big picture in running a banking outfit.

The positioning of supply chain management

Once the person has experienced the bigger part of the banking industry work process, he maybe slowly introduced to position of responsibility as head of corporate loan division which by itself requires experience to handle credits and loans issue which at a higher level involving billion dollar credits, it calls for heavy responsibility to recommend for such loan to be given out. Over time he might be ready to helm the banking overall management.

We will recall that all those experiences he had earlier are all specialised activities which when collected over time will provide him with good over all big picture to prepare him for the future big challenge. This is the supply chain scenario.

The Merger

The merging of the Institute of Logistics (IoL) and The Chartered Institute of Transport (CIT) brought about the birth of an institution called Institute of Logistics & Transport or ILT way back in 1919 and obtaining its royal charter in 1926.

The Chartered Institute of Logistics and Transport(CILT) in the UK is the membership organisation for professionals involved in the movement of goods and people and their associated supply chains.

Members of the Institute are involved in the management and design of infrastructure, systems, processes and information flows and in the creation, management and development of effective organisations. The work of our members impacts directly on people, society and the environment, on business profitability and economic growth.

The Chartered Institute of Logistics and Transport in the UK is a registered charity and part of the CILT international family with over 33,000 members in countries across the world.

Our vision is for The Chartered Institute of Logistics and Transport to enable innovation, excellence and value creation for both individuals and corporate bodies by being the leading membership organisation and education provider within our community of professionals.

Our mission is to add value to individual and corporate members by enhancing their knowledge, careers, and businesses by setting, supporting and delivering professional standards and education and by promoting logistics, transport and their associated supply chains to society as a whole. We do this by providing members with:

Connection

Networking and sharing of good practice and innovations with professionals from across multiple sectors and modes through regional and national events, our Young Professionals and special interest groups.

Professional voice

Representing and promoting the membership and profession through our publications and policy.

Professional recognition

For members to be recognised as professionals by attaining and retaining membership, including chartered status.

Personal development

Career advancement through Continuing Professional Development (CPD), education, qualifications, networking, mentoring and knowledge sharing.

The Role of CILT Malaysia

The Chartered Institute of Logistics and Transport in Malaysia (CILTM) had its beginnings in 1965 with the formation of Malaysia Section. This was to fulfil the need for the qualified locals in the field of logistics and transport after independence and the increasing demand in the transport industries. In October 1990, the Malaysia Section was upgraded to that of a National Council. Today, the situation in the logistics and transport industry even more dynamic and the demand for trained logistics and transport managers and operators is greater than ever.

Internationally, the institute has about 33,000 members with about half the number residing outside the UK, mostly in the Commonwealth countries. Malaysia has about 2,000 members of all grades. Membership of the CILT not only offers today’s transportants a breadth and depth of training through its excellent examination system, it also offers the opportunity to exchange valuable ideas and experiences with other logistics and transport professionals.

The Institute also constantly strives to keep up with the ever changing development in the Industry.

The Institute’s Qualifying Examinations are internationally recognised professional transport and logistics qualification of a high educational standard. A Member with a pass in the CILT Qualifying Examination is accepted as equivalent to a general degree. Together with appropriate work experiences, they lead to full Membership and the designatory letters of “CMILT” which is recognised by the Public Services Department in Malaysia as equivalent to an honours degree of a local university, subject to MQA criteria conferred upon the programme. Avenues for post-graduate studies in the logistics and transport field may be pursued at any local or overseas universities offering such courses.

From a National Council Status in 1990 it has now achieved a Territorial status

Malaysians that had served as President of the International Council is Tan Sri Aziz Abd Rahman former CEO MAS.

After 40 years Malaysia is to be honoured another Presidential Elect for the 2020-2022 term. He will be the current CILT Malaysia President – Dato Abd Radzak Malek.

Public Policy and Guidance

 CILT is dedicated to shaping change in all aspects of logistics, supply chain and transport. CILT plays a vital role in the development of policy and guidance, producing regular submissions to the Government, and other bodies as well as publishing reports and consultation responses which review and respond to recent policy proposals. 

 Has no political affiliations. Our principal concerns are that transport and logistics policies and procedures should be effective and efficient; based on objective analysis of the issues and practical experience and that good practice should be widely disseminated and adopted. To meet these aims, a great deal of work is undertaken by our network of Forums and policy working groups and channelled through the Public Policies Committee.

CILT public policy is solely lead and developed by our members. Member input into policy reports and consultation responses ensures that CILT reflects the current concerns of the supply chain, logistics and transport professions.

CILT Malaysia and government

CILT Malaysia is the sole body recognised by the government of Malaysia having the status of an advisory capacity to the transport and logistics performances in the country. It sits in the various government board in relation to transport and logistics policies. It sits on the panel of the Inquiry Committees on major accidents in the country. It is tucked in under the purview of the MOT. Previously was under MITI.

The MOHE gives recognition to its professional logistics programme both as a stand alone and as embedded programmes of 22 local universities and Colleges as CILT Malaysia’s training provider.

The programme

CILT Malaysia has its professional programme meant for working matured students known as Professional Qualifying Examination in Logistics which is of 56 hours credit hours falling short of MQA approved study hours limit. But this could be easily extended to the 92 hours credit hours requirement by MQA if meant for later recognition by the Ministry of Higher Education as of equivalent to a degree issued locally. This programme can be embedded in the university programme and if 70% of the content of the PQE syllabus is matched then embedding of the programme would be acceptable.

There is a very good reason why Universities and colleges opt to run an embedded programme specially those business programmes as it adds value to the qualification that they would attain aside from getting the degree that they originally signed in. It gives them added value and put them in better position having additional professional qualification when applying for jobs, not only in Malaysia but overseas where CILT are present overseas. Bearing in mind that logistics as a subject matter is in every facet of economic activities and that their contribution to the overall economic performance is critical, it therefore goes without saying that logistics is a must have subject in the furtherance of education.

For the Universities and colleges, having a double major qualification is a good attraction to those intending to join the university. It is like killing two birds with one stone.

Stronger Together

Please email us at ramliamir@cilt-m.com.my for further clarification.