Port TEU’s. This target can only be

Port Klang is located about 40 km from Kuala Lumpur on the West Coast of Peninsular Malaysia. The geographical location, strong native cargo base and proximity to industrial hub add advantage to attract trade inflow and outflow. Ranked as one of top 12 container ports in the world, it is believed that it connects Malaysia to more than 500 ports based over 120 countries across the globe.Port Klang operations run from two terminals, Westport and North Port. Both terminals handle various marine operations however container is one of the largest. The handling capacity is close to 16.2 million twenty-foot equivalent unit (TEUs). Port Klang has been experiencing annual average growth of 10% for last 10 years and this has encouraged the government to plan for a third port to enable competitiveness with other ports like Singapore.Last year, Port Klang lost approximately 30 percent revenue business (transshipment) to Singapore. This has resulted in Port Klang to operate below capacity. Besides the strategic location and development of small ports, advanced logistics technology and Integrated facility at Singapore is being considered as one of the key reason to lose the business. Various regional countries like Hong Kong, are adopting automation technology in ports to save money and time. These countries are investing into research like driverless automated guided vehicles. Malaysian government is also investing in technology but are way behind to some of competitive ports.Current challenges faced by Port Klang are: •    Competitive regional ports sharing similar strategic location•    Port capacity not fully utilized•    Low Operation productivity due to repetitive process•    Several systems and platforms which restricts information flow from one system to other.•    Poor integration of modes of transport•    Cumbersome customs paperwork•    Close to nil use of data analytics to improve business process.The Malaysian government is working closely with the Chinese government on China’s one belt one road project. This will generate more income for ports as some of the giant Chinese companies like China Merchants, China shipping will be calling Malaysian ports. The extension agreement is aiming to achieve the bilateral trade target of US$160 billion. It is believed that all port stakeholders like port operators, freight forwarders, logistics companies will benefit. Currently, Port Klang can handle 16million TEU however it will need to target 30 million TEU’s. This target can only be achieved if they improve logistics technology and infrastructure.This project aims to bring Malaysia and Asean closer to China.


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