INGENIEUR
Port Privatisation
The original objective of establishing port authorities in Malaysia was to act as port regulators and operators of ports . However , this dual role was reviewed during the 1980s with the adoption of the port privatisation policy by the Government . In a big policy move , the Government decided to split the function between regulating and operating ports . This was also to establish greater efficiency in port operation and be more productive and competitive .
The privatisation of port operations in Malaysia began in 1986 when Port Klang Authority relinquished the container terminal operations . The rest of the Port ’ s operations were privatised in 1992 . Subsequently , the new container port facility in Pulau Indah was also privatised in 1994 . Later in 1995 , Pasir Gudang Port and Port of Tanjung Pelepas , both in Johor , were privatised . This was quickly followed by Kuantan Port in 1998 , Bintulu Port in 2001 and Penang Port in 2014 . The conclusion of the Penang Port privatisation clearly cemented Malaysia ’ s port governance and operation policy as all the six major ports under Federal Government ’ s control had by then passed to private operators .
The privatisation of ports in Malaysia is enabled by the Port Privatisation Act 1990 . The Malaysian port privatisation model is by way of an agreement between the Government of Malaysia ( usually represented by the Port Authority ) and the private entity that is awarded the concession . The relationship is one of a landlord-tenant / operator given for a set period of time , usually 30 years with an option for another 30 years . The responsibility of the terminal operator is to manage , operate and maintain the port including to provide port marine services .
Apart from streamlining port governance , privatisation of ports has fostered greater efficiency in port operation , making them more productive and competitive . Some of the main benefits of port privatisation are :
1 . Improved port operation efficiency and productivity ;
2 . Reduced Government expenditure in major port investment ;
3 . Clear demarcation of roles of the port regulator and port operator ; and
4 . Port business is best done by the private sector .
The decision to privatise port operations has worked in Malaysia ’ s favour as the stated objectives have been met . Today , both Port Klang and Port of Tanjung Pelepas are consistently ranked among the top 20 busiest ports in the world .
Relieved of the burden of port operations , Port Authorities are able to better focus on their fundamental roles as :
1 . Landlords , as port lands are owned by the
Port Authorities ; 2 . Policymaking and planning ; 3 . Regulatory , supervisory and surveillance that include privately owned jetties and terminals within the port area ;
4 . Monitoring port performance and promoting business ; and
5 . Training .
Container Terminal Operation
The objective of any port operation is to ensure that cargo is transferred between ship and terminal efficiently and to minimise the time a ship spends in the port . In a typical container port , such operations involve the unloading of containers from the ship , transporting them to the terminal yard area for temporary storage , before they are taken out of the port . At the same time export containers are moved from the storage yard to the berth side and loaded on board the ship . These activities are done during the time the ship is berthed at the port . The general operational layout of a container terminal is illustrated in Figure 1 .
Cargo handling efficiency is vital for port business . Terminal efficiency is one criteria that is looked at by a shipping line when selecting its ports of call . As ships become bigger and the number of port calls minimised , it has become crucial that apart from its strategic location , a port has the productivity that meets the requirements of shipping lines . Often port efficiency is measured by ship turnaround time , terminal productivity and cost efficiency 7 .
A study by University of Colombo 8 further illustrates this point . The study found that operational productivity in terms of cargo handling
14 VOL 83 JULY-SEPTEMBER 2020