the Coronavirus pandemic to look beyond container throughput and KPIs . Post-pandemic , ports should focus on the logistics of clearing container cargo which is currently handled by freight forwarders , hauliers , and transport companies .
Comprehensive Bunkering Strategy . Even though Malaysia has a relatively small bunkering business compared with Singapore , the country has the advantage of a strategic location , low operating costs , and is one of the main producers of Liquefied Natural Gas ( LNG ) in the region . Ships calling on its two premier ports , Port Klang and PTP , need bunkering and other related marine services . Therefore , Malaysia needs a comprehensive strategy to be a bunkering hub . In crafting this strategy , Malaysia must incorporate lessons learnt from the problems faced by bunker traders during the recent low demand for bunkering oil and plunge in oil prices . Bunkering traders must have sufficient capital to anticipate potential disruption to the business .
Compliance with IMO ’ s Conventions . Malaysia ’ s ports and shipping sector must comply with IMO ’ s conventions on port facilitation and low sulphur . Even though faced with the Coronavirus and the expected economic downturn , international communities are still concerned about climate change . Therefore , Malaysia ’ s ports and shipping sector must continue to strive for better port facilitation through port community networks and the use of low sulphur and low carbon fuel . The compliance with IMO ’ s Conventions will boost Malaysia ’ s status as a maritime nation .
Conclusion
The onslaught of the three crises has significantly affected the global economy . The Coronavirus pandemic alone has caused the worst economic downturn since the Great Depression . The World Bank projected Malaysia ’ s GDP growth to contract to negative 0.1 % in 2020 . The Malaysian Government must utilise economic stimulus packages to cushion the impact of the pandemic by protecting the economy and employment .
For the maritime transportation industry , the US-China trade tensions have caused a decline in container throughput in Penang Port , where semifinished products heading to China are handled . The Coronavirus pandemic is now causing ports to refocus on logistics handled by freight forwarding , hauliers , and transport services . The plunge in oil prices and low demand in bunker oil is a lesson to learn for crafting Malaysia ’ s bunkering strategy . Bunker traders must have sufficient capital to anticipate potential risks in the business .
As highlighted by Malaysia ’ s Prime Minister , all economic sectors must adjust and adapt to the ‘ new normal ’ post-pandemic . Likewise , the ports , shipping and bunkering sectors must adapt to the new environment by adopting a more diversified supply chain , logistics-centric ports , and drafting a comprehensive bunkering strategy while complying with the IMO ’ s conventions for better port facilitation and cleaner fuel .
REFERENCE
UNCTAD , 2019 . The United Nations Conference on Trade & Development . UNCTAD . Retrieved from https :// unctad . org / en / PublicationsLibrary / rmt2019 _ en . pdf
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