- Malaysian ports recover post-COVID but face slower 2023 growth. Despite a robust 9-month performance, forecasts suggest modest expansion.
- Challenges arise from subdued global trade, reflected in Maersk Line’s job cuts amid falling demand and overcapacity.
- Industry slowdown signals caution in shipping and maritime sectors.
Port industry Growth
Port Klang’s proposed RM28 billion Carey Island mega port sparks industry interest, aiming to triple handling capacity by 2055. The development was foreseen to enhance efficiency and competitiveness, fostering increased trade volumes.
Thought Partners Group emphasizes workforce training and the need for a logistics research center to optimize industry performance. The Ministry of Transport’s upgrade to Malaysia Maritime Single Window by 2024 aims for integrated port trade coordination at a RM20 million cost borne by port authorities.
Port Expansions
Malaysia’s ports gear up for enhanced efficiency and capacity, mandated by the FAL Convention 1965. MMC Bhd’s Penang Port plans RM1.5 billion expansion, Johor Port seeks collaborations for maritime advancement.
Westports Holdings gains cabinet nod for container terminal expansion, reporting increased profits. Local ports, including Northport Malaysia, invest in equipment and alliances to integrate into global supply chains, focusing on LNG bunkering operations and growth initiatives amid rising cargo handling demands.
Westport’s revenue rises to RM542.31 million with increased container revenue, boosting net profit.
Perak’s Industrial Initiatives
Perak gains attention with proposed development of four industrial parks; Perak State Development Corporation collaborates with Port of Antwerp-Bruges for Lumut Maritime Industrial City (LuMIC) in a RM72 billion investment over 25 years.
Deputy Prime Minister Fadillah Yusof briefed on PoABI’s port; Perak ports witness significant development amid rising prospects.
ESG Adoption
Malaysia’s maritime sector embraces sustainability by reducing carbon footprint, adopting lower-sulphur fuels, scrubbers, and green technologies. Port operators shift to electricity, LED bulbs, and Industry 4.0 solutions for enhanced efficiency and productivity.
Port of Tanjung Pelepas joins Malaysia-Australia initiative, aiming to lead decarbonization efforts in Southeast Asia. 2024 outlook for the transportation sector, especially port operators, turns positive due to promising trade prospects from RCEP and CPTPP agreements, per MIDF Research.
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Source: Bernama
