Port Klang poised to be London Metal Exchange hub

Accreditation by London Metal Exchange a big boost for port

LONDON: Port Klang is poised to become Asia’s leading distribution hub for the London Metal Exchange (LME) following its accreditation as the exchange’s Good Delivery Point.

The move will further enhance Malaysia’s image as a major regional logistics centre for LME trade, according to Port Klang Free Zone general manager Chia Kon Leong.

He said Port Klang’s listing was fast-tracked as it had always been LME-ready with its excellent port infrastructure, strong logistics support and sound operational systems.

Chia said the port was strategically located to capitalise on the burgeoning LME trade from producing countries like Australia and Europe to the vast consuming markets of South East Asia and China/Far East.

“We reckoned that Port Klang is targeting to receive 150,000 to 200,000 tonnes of metals within the next six months,” he said.

Chia had earlier witnessed the presentation of the Letter of Accreditation from the exchange’s CEO Martin Abbott to Transport Minister Datuk Seri Ong Tee Keat at the LME boardroom in London on Friday.

Established for over 130 years, the LME is the world’s premier non-ferrous metals market, offering futures and options contracts for aluminium and aluminium alloy, copper, nickel, tin, zinc, lead and plastics.

With a turnover in excess of US$3 trillion per annum, the LME also contributes to the UK’s invincible earnings to the tune of more than £250mil in overseas earnings each year.

Port Klang’s listing as a Good Delivery Point was approved by the LME on May 8, thereby allowing the port to receive LME-traded metals since June 10.

The accreditation is of immense significance to Malaysia as there are now only two other approved listed delivery locations in South East Asia, namely Pasir Gudang in Johor and Singapore.

LME delivery points are mainly in major ports around the world, which must meet strict criteria before they are approved for the handling of metals and plastics traded through the exchange.

Chia said Port Klang was strategically located at the crossroads of the world’s busiest shipping lane as well as being the world’s 15th busiest container port and one of Asia’s largest multi-purpose ports.

He said the port was centrally located in South East Asia, close to the huge consumer market in China which had no delivery points despite the enormous volumes of LME metals being shipped there.

“We’re close to consuming areas but away from major producers like those in Australia,” he said, citing BHP Billiton as one of the world’s largest mining companies.

Chia also said Port Klang was unique in a sense as within its free zone, there were companies which could consume such metals.

He said one firm, for instance, could actually get its copper supply from within the free zone, unlike other delivery points which were purely distribution areas.

He added that the listing had enhanced Port Klang’s resilience in facing the recessionary environment as metals needed to be stored due to lower consumption.

“We provide LME traders, warehouse companies and other users with highly competitive rates backed by cost-effective and efficient operations,” he added.

Ong said Port Klang was offering not just one port terminal but two and 405 ha of (Port Klang) free zone as a delivery location.

“And that free zone certainly has vast potentials that will suit the LME’s business purposes,” he noted.

Abbott said the LME appreciated the fact that Malaysia operated a fiscal regime that was encouraging to the international business community.

“With regards to Asia in general, as probably the biggest single growth area for the LME in the next 10 to 20 years, we’re very happy to have Malaysia and Port Klang as our strategic partners in our long-term business growth,” he added.

Source: http://thestar.com.my/maritime/story.asp?file=/2009/6/22/maritime/4164516&sec=maritime, 22 June 2009

M’sia ready for IATA e-freight service

MALAYSIA’s airfreight industry has received recognition from the International Air Transport Association (IATA) as a site ready for the IATA e-freight service.

The Malaysia IATA e-freight implementation team, led by Malaysia Airlines Cargo Sdn Bhd (MASkargo), started work in February and delivered the IATA e-freight on schedule.

Also involved were Royal Malaysian Customs, Emirates, Singapore Airlines, Cathay Pacific, KLM, DHL Global Forwarding, DB Schenker, the Airfreight Forwarders Association of Malaysia, Penang Freight Forwarders Association, Federation of Malaysia Freight Forwarders, Kuala Lumpur Airport Services and Malaysia Airports (Sepang) Sdn Bhd – KLIA Free Zone Authority.

IATA e-freight became operational between Kuala Lumpur and Hong Kong, Singapore and Dubai on May 26, with further expansion planned in the coming months to South Korea and The Netherlands.

Facilitated by IATA, the project is an industry-wide initiative involving carriers, freight forwarders, ground handlers, shippers and customs authorities.

IATA e-freight effectively eliminates the need to send paper documents with air-cargo shipments, thereby streamlining processes, improving speed and reliability and cutting costs.

Over the past year IATA has assessed the readiness of 148 locations worldwide in addition to the original six e-freight sites.

Of these, 44 countries, representing approximately 80% of global air-freight volumes, have the appropriate international treaties and high level customs framework in place to qualify for IATA e-freight.

Malaysia is the 20th e-freight location worldwide to deliver paper-free cargo documents.

MASkargo managing director Shahari Sulaiman said the implementation of the e-freight programme would lift their status to be on par with established industry players.

“The e-freight programme that MASkargo is embarking on will bring tangible benefits by simplifying the business, reducing costs and improving opportunities in the industry’s ever-changing and complex environment,” he said.

Source:http://thestar.com.my/maritime/story.asp?file=/2009/6/1/maritime/4003402&sec=maritime, 01 June 2009

Reader’s Digest Trusted Brand award for FedEx

FEDEX Express, a subsidiary of FedEx Corp listed on New York Stock Exchange, has been named a Trusted Brand by readers of Reader’s Digest across the Asia-Pacific.

In this year’s Reader’s Digest Trusted Brands in Asia Survey, FedEx won the Gold Award for the sixth consecutive year in the overall Asia regional category of the airfreight/courier service division.

“It is an honor for FedEx to be recognised as a trusted brand and service provider by customers in this region for six years in a row.

“FedEx has always been focused on making every customer experience outstanding since we established operations in Asia 25 years ago,” said David L. Cunningham Jr, president of FedEx Asia-Pacific, in a statement.

“The results from this year’s Reader’s Digest Trusted Brands in Asia Survey reflects FedEx’s success in delivering and anticipating what customers want,” he said.

Inaugurated in 1999, the Reader’s Digest Trusted Brands in Asia Survey is the region’s most comprehensive poll that seeks to identify Asia’s most trusted companies.

In addition to trustworthiness and credibility, the survey also measures the companies’ commitment to innovation, quality of services and products, corporate values, understanding of customer needs as well as corporate social responsibility.

Source: http://thestar.com.my/maritime/story.asp?file=/2009/5/11/maritime/3869058&sec=maritime, 11 May 2009

Northport wins Asia’s best container terminal award

NORTHPORT (M) Bhd bagged The Best Container Terminal Award (Asia) at the Asian Freight and Supply Chain Awards 2009 held in Hong Kong recently.

Northport, a multi-purpose terminal, was selected for the award from a list which included other top container terminals in Asia.

The selection was based on a list of criteria, which included crane productivity, timely and adequate investment in new terminal infrastructure to meet future demand, effective use of information technology and efficient turn-around of trucks delivering and picking up containers.

Northport, which handled three million twenty-foot equivalent units (TEUs) last year, offers one of the widest shipping connectivity among ports in Malaysia with about 123 container shipping lines linking it to some 300 ports worldwide.

Managing director Datuk Basheer Hassan Abdul Kader said in a statement that Northport was committed to maintaining high performance and productivity because leading shipping lines that called at the port required standards comparable with other major global ports to which they were linked.

Last year, 81 shipping lines as well as 44 conventional and 502 container vessels made about 8,000 ship calls at Northport.

On the impact on the global economic downturn, Basheer said container cargo through Northport dropped 15% (year-on-year) in the first quarter of this year.

Northport is one of the major hubs in Malaysia for exporting cargos and this moderate decrease was within expectation.

Source: http://thestar.com.my/maritime/story.asp?file=/2009/5/11/maritime/3869211&sec=maritime, 11 May 2009

MISC logistics arm’s facilities certified halal

MISC Integrated Logistics’ (MILS) storage and warehousing facilities have been certified halal by Halal Development Corp (HDC).

MISC said in a statement that the certification was awarded based on the merits of hygiene and syariah compliance for both dry and cold storage.

The integrated logistics arm of MISC Bhd is located at the MISC Logistics Hub (MLH) Free Commercial Zone (FCZ) on Pulau Indah, Port Klang.

MILS’ dry warehouse, with 250,000 sq ft of space, can handle 23,000 pallets.

The cold-storage facility is able to accommodate multiple temperatures ranging from 18°C to -25°C. The cold room is equipped with mobile racking solution with a capacity for 8,500 pallet positions for frozen products and 1,200 pallet positions for chilled products.

The storage facility at the FCZ, coupled with MISC’s Halal Express Service shipping route, makes MISC one of few companies truly capable of offering customers the entire value chain in halal logistics.

MILS has also formed a joint venture in Dubai, which will give it the opportunity to tap and strengthen the group’s connectivity and promote the halal capabilities of MILS logistics hub in Malaysia.

The hub can be seen as a bridge to Africa, the Middle East and Europe where the halal markets are huge.

Source: http://thestar.com.my/maritime/story.asp?file=/2009/5/4/maritime/3815066&sec=maritime, 04 May 2009