WHAT IS OPEN SKY POLICY - THE US/JAPAN AGREEMENT
Japan-US 'Open-Skies' agreement may lead to big changes in air cargo market
14/Dec/2009 by Thomas Cullen.
Japan and the United States have agreed an initial outline of an 'Open-Skies' deal. The two governments concluded the draft late on Friday. In keeping with the nature of these agreements, rather than allowing free-trade in air services between the two countries, it rewrites an aviation agreement originating in 1952, expanding the number of airlines that can operate between the two countries and the capacity of these services. The treaty now has to be ratified by the two countries respective legislatures.
For the air cargo market the 'Open-Skies' agreement offers the potential for significant restructuring of a number of market segments. For example, at present only FedEx is permitted full access to the Japanese market whereas UPS operates within capacity and destination limitations. These restrictions will now be abolished.
The agreement also offers to remove limitations on pricing. At present the two governments can veto reductions in tariffs, however this is to be abolished.
Access to Japanese airports, such as Narita and Haneda, for American carriers is to be improved.
The agreement may also lead to extensive restructuring for the wider Japanese and American airline sector. Japan Airlines (JAL) is presently facing acute losses and is being approached by two consortia led by American Airlines and Delta respectively who are offering to recapitalise the Japanese carrier. JAL continues to receive significant subsidies from the Japanese government. Such an environment might have implications for JAL's relationship with its cargo services joint venture partner Nippon Cargo Airlines, which is owned by NYK.
The US government has had significant success with its 'Open-Skies' initiatives, reaching agreement with 95 governments. However not all the treaties are permanent or particularly stable, notably that with the EU which faces revision and possible termination in several years time.
Tuesday, December 22, 2009
Monday, June 29, 2009
City Traffic Woes
Kota Kinabalu City Bus Service
First and foremost congratulation to City Hall Kota Kinabalu for pushing on the much needed solution to city transport woes. In our effort at getting to the solution, we would definitely not able to satisfy all parties affected. But looking at it positively, City Hall in introducing the system has given much thoughts to it and must have visited a few cities studying the city traffic there. I am also sure that there will not be able to resolve the problems on their own. The other party that has as much a responsibility coming up with a perfect tango in ensuring the success of the plan is Lembaga Pelesenan Kenderaan Perdagangan (LPKP). To also have to play their part as they are the body that issue licences to commercial vehicles before conducting their trade.
LPKP is said to be slow in implementing their part of the bargain. The city bus system to be efficient and effective at the same time, must have enough buses to ply the 2 routes designated by City Hall. For now there are 13 buses or at the most 15 buses on the road serving the route. Because there are no other buses other than the city buses to drop and pick passengers within the Central Business District (CBD), to be efficient you must have enough buses to go round. How many is enough? This is where again the City Hall has to be lauded for their foresight to look at satisfaction of human needs and demands. They have set a very high standard comparable to the best in the world. The idea is to have bus passing through a point every 5 minutes. Isn’t this wonderful?
However with just 13 to 15 buses the current situation is that buses do come by at every 30 minutes. If you are not so lucky you might have to spend another half hour for the next one, if you missed the first one perhaps because they are already full of passengers. What will be the situation when its raining?
Is LPKP to be blamed for the extra permits that are required to fill in the shortage? At this stage we are not able to get a confirmation from LPKP as to whether they have issued the licences as the other party in the circle is the bus operator themselves. Have they applied for the permits or not? They have to answer for this. Reading at the situation on an armchair, I believed that there would not be a problem for LPKP to issue the licences. Is that too difficult to do to issue the many licences required? I am sure its only paper work. So why is it that there are no additional buses running on the road plying the routes. The ball looked like to be in the court of the bus operator. Why not?
For argument sake, if it is something which is considered prohibitive for one operator to undertake the economic activity, why not allow a second operator to come in? Since there are 2 routes, lets divide them to both of them. Looks a simple and logical solution to me. So unless the bus operator can give us a definitive reply, we can see no end to the public transport users grouses. Let us hope that this does not boil to a situation where the users take to the streets to demonstrate and vent their anger.
Hj Ramli Amir
Chairman
The Chartered Institute of Logistics & Transport Malaysia, Sabah Section
28th June, 2009
First and foremost congratulation to City Hall Kota Kinabalu for pushing on the much needed solution to city transport woes. In our effort at getting to the solution, we would definitely not able to satisfy all parties affected. But looking at it positively, City Hall in introducing the system has given much thoughts to it and must have visited a few cities studying the city traffic there. I am also sure that there will not be able to resolve the problems on their own. The other party that has as much a responsibility coming up with a perfect tango in ensuring the success of the plan is Lembaga Pelesenan Kenderaan Perdagangan (LPKP). To also have to play their part as they are the body that issue licences to commercial vehicles before conducting their trade.
LPKP is said to be slow in implementing their part of the bargain. The city bus system to be efficient and effective at the same time, must have enough buses to ply the 2 routes designated by City Hall. For now there are 13 buses or at the most 15 buses on the road serving the route. Because there are no other buses other than the city buses to drop and pick passengers within the Central Business District (CBD), to be efficient you must have enough buses to go round. How many is enough? This is where again the City Hall has to be lauded for their foresight to look at satisfaction of human needs and demands. They have set a very high standard comparable to the best in the world. The idea is to have bus passing through a point every 5 minutes. Isn’t this wonderful?
However with just 13 to 15 buses the current situation is that buses do come by at every 30 minutes. If you are not so lucky you might have to spend another half hour for the next one, if you missed the first one perhaps because they are already full of passengers. What will be the situation when its raining?
Is LPKP to be blamed for the extra permits that are required to fill in the shortage? At this stage we are not able to get a confirmation from LPKP as to whether they have issued the licences as the other party in the circle is the bus operator themselves. Have they applied for the permits or not? They have to answer for this. Reading at the situation on an armchair, I believed that there would not be a problem for LPKP to issue the licences. Is that too difficult to do to issue the many licences required? I am sure its only paper work. So why is it that there are no additional buses running on the road plying the routes. The ball looked like to be in the court of the bus operator. Why not?
For argument sake, if it is something which is considered prohibitive for one operator to undertake the economic activity, why not allow a second operator to come in? Since there are 2 routes, lets divide them to both of them. Looks a simple and logical solution to me. So unless the bus operator can give us a definitive reply, we can see no end to the public transport users grouses. Let us hope that this does not boil to a situation where the users take to the streets to demonstrate and vent their anger.
Hj Ramli Amir
Chairman
The Chartered Institute of Logistics & Transport Malaysia, Sabah Section
28th June, 2009
Monday, April 27, 2009
PORT OF TANJUNG PELEPAS
MMC hurt by low cargo volume
Monday April 27, 2009
By SHARIDAN M. ALI
MMC Corp Bhd sees lower revenue contribution from its port business in Johor this year due to the drop in cargo volume, said chief executive officer Hasni Harun.
Both its ports in the state, Port of Tanjung Pelepas (PTP) and Johor Port, had been hit by the global recession, he said.
“Ports in the region have been experiencing a decline in volume of between 15% and 20% since the fourth quarter last year.
“There has been a spike in volume last month due to the replenishment of depleted inventories but it is premature to say whether this is sustainable.
“Subject to an improvement in consumer confidence globally, the situation may not lead to a long and deep downturn. It might improve in 2010 and we hope to maintain what we’ve achieved last year,” he told StarBiz.
»Ports in the region have experienced a decline in volume of 15% to 20% since the fourth quarter last year«HASNI HARUN
PTP registered a container throughput of 5.6 million twenty-foot equivalent units (TEUs) last year, up 1.8% against 2007.
Johor Port handled 17.2 million freight weight tonnes of bulk and conventional cargo in 2008, representing a growth of 8% year-on-year, and recorded 934,767 TEUs of containers last year, an increase of 1%.
The two ports contributed 14% to MMC group revenue in 2008 compared with 20% in 2007.
Hasni said the decline in percentage of contribution from its ports despite higher revenue was due to the increase in Malakoff Bhd’s revenue contribution, resulting from the 12-month consolidation of Malakoff’s results last year versus only eight months in 2007.
“Based on the current slowdown, we expect the revenue contribution from our ports to also be lower year-on-year,” he said.
On capital expenditure (capex), Hasni said PTP planned to spend RM400mil to RM500mil this year, which is lower than the RM900mil spent last year, in line with the slowdown in business.
“This year’s capex includes for additional equipment at existing berths (berths 9 and 10), which will further increase the port’s operational efficiency, as well as for the ongoing construction of berths 11 and 12.
“We are making prudent decisions on capex and will equip berths 11 and 12 progressively as global shipping trade improves,” he said.
Both of MMC’s ports in Johor – Port of Tanjung Pelepas and Johor Port (pic, below) have been hit by the global economic recession
He added that Johor Port also expected to spend a lower amount of capex this year, primarily for maintenance works.
Going forward, Hasni said PTP’s value proposition was in its strategic location, unrivalled potential capacity growth, connectivity and competitive rates.
“These attributes will continue to make PTP an ideal choice for shipping lines, particularly those that are restructuring their routes and collaborating with other lines to minimise costs under the current economic scenario.
“Meanwhile, Johor Port focuses on high-value cargo and commodities in the bulk and break-bulk terminals,” he said.
Besides port operations, MMC has finalised the acquisition of Senai Airport Terminal Services Sdn Bhd (SATS) in Johor for RM1.7bil.
According to Hasni, having interests in ports and an airport allowed the company to achieve better integration between the two modes of transportation.
“PTP is recognised as an ‘airport within a seaport’ and this further enhances the inter-modal movement of cargo from ships to airplanes and vice-versa.
“The acquisition of SATS will expand MMC’s logistics business, in line with its vision to be a global utilities and logistics group,” he said.
SATS is currently undergoing an expansion, including the extension of its runway from 3,354m to 3,800m, which will accommodate fully-loaded long-haul cargo flights.
“An Aero-Mall is also being built, which will add 6,500 sq m, bringing the total outlet space to 8,500 sq m to cater for the growing population residing within easy access of the airport. The mall is scheduled for completion in the first quarter of 2010.
“The airport also has a cargo capacity of 80,000 tonnes per annum and offers bonded warehouse and warehousing facilities,” he added.
Hasni said SATS’ potential would be realised with the development of Senai Airport City into a regional cargo and logistics hub.
Works on Senai Airport City, with a gross development value of RM10bil, would commence towards the year-end and scheduled for completion by 2020, he said.
Monday April 27, 2009
By SHARIDAN M. ALI
MMC Corp Bhd sees lower revenue contribution from its port business in Johor this year due to the drop in cargo volume, said chief executive officer Hasni Harun.
Both its ports in the state, Port of Tanjung Pelepas (PTP) and Johor Port, had been hit by the global recession, he said.
“Ports in the region have been experiencing a decline in volume of between 15% and 20% since the fourth quarter last year.
“There has been a spike in volume last month due to the replenishment of depleted inventories but it is premature to say whether this is sustainable.
“Subject to an improvement in consumer confidence globally, the situation may not lead to a long and deep downturn. It might improve in 2010 and we hope to maintain what we’ve achieved last year,” he told StarBiz.
»Ports in the region have experienced a decline in volume of 15% to 20% since the fourth quarter last year«HASNI HARUN
PTP registered a container throughput of 5.6 million twenty-foot equivalent units (TEUs) last year, up 1.8% against 2007.
Johor Port handled 17.2 million freight weight tonnes of bulk and conventional cargo in 2008, representing a growth of 8% year-on-year, and recorded 934,767 TEUs of containers last year, an increase of 1%.
The two ports contributed 14% to MMC group revenue in 2008 compared with 20% in 2007.
Hasni said the decline in percentage of contribution from its ports despite higher revenue was due to the increase in Malakoff Bhd’s revenue contribution, resulting from the 12-month consolidation of Malakoff’s results last year versus only eight months in 2007.
“Based on the current slowdown, we expect the revenue contribution from our ports to also be lower year-on-year,” he said.
On capital expenditure (capex), Hasni said PTP planned to spend RM400mil to RM500mil this year, which is lower than the RM900mil spent last year, in line with the slowdown in business.
“This year’s capex includes for additional equipment at existing berths (berths 9 and 10), which will further increase the port’s operational efficiency, as well as for the ongoing construction of berths 11 and 12.
“We are making prudent decisions on capex and will equip berths 11 and 12 progressively as global shipping trade improves,” he said.
Both of MMC’s ports in Johor – Port of Tanjung Pelepas and Johor Port (pic, below) have been hit by the global economic recession
He added that Johor Port also expected to spend a lower amount of capex this year, primarily for maintenance works.
Going forward, Hasni said PTP’s value proposition was in its strategic location, unrivalled potential capacity growth, connectivity and competitive rates.
“These attributes will continue to make PTP an ideal choice for shipping lines, particularly those that are restructuring their routes and collaborating with other lines to minimise costs under the current economic scenario.
“Meanwhile, Johor Port focuses on high-value cargo and commodities in the bulk and break-bulk terminals,” he said.
Besides port operations, MMC has finalised the acquisition of Senai Airport Terminal Services Sdn Bhd (SATS) in Johor for RM1.7bil.
According to Hasni, having interests in ports and an airport allowed the company to achieve better integration between the two modes of transportation.
“PTP is recognised as an ‘airport within a seaport’ and this further enhances the inter-modal movement of cargo from ships to airplanes and vice-versa.
“The acquisition of SATS will expand MMC’s logistics business, in line with its vision to be a global utilities and logistics group,” he said.
SATS is currently undergoing an expansion, including the extension of its runway from 3,354m to 3,800m, which will accommodate fully-loaded long-haul cargo flights.
“An Aero-Mall is also being built, which will add 6,500 sq m, bringing the total outlet space to 8,500 sq m to cater for the growing population residing within easy access of the airport. The mall is scheduled for completion in the first quarter of 2010.
“The airport also has a cargo capacity of 80,000 tonnes per annum and offers bonded warehouse and warehousing facilities,” he added.
Hasni said SATS’ potential would be realised with the development of Senai Airport City into a regional cargo and logistics hub.
Works on Senai Airport City, with a gross development value of RM10bil, would commence towards the year-end and scheduled for completion by 2020, he said.
CONTAINER SHIPPING RECOVERY
Monday April 27, 2009
Recovery not yet in sight for container sector
By SHARIDAN M. ALI
CONTAINER shipping companies returning to viable business conditions may still be a far-fetched scenario although the sector has seen a slight pick-up since last month due to improvements in global trade volumes and recovering rate charges.
Freight rates, usually determined by demand, fell more than 80% since the last quarter of 2008 due to falling global trades.
But shipping companies are now “restoring” rates spurred by the slight pick-up in demand and the need to at least break even in their operations.
Maersk Line, the world’s largest liner company, will increase its rates for the Europe-to-Middle East and South Asia trades effective May 1.
“Unsustainable rates and continued improved demand lead to rate increases,” said the company in a statement.
Maersk Line raised rates by US$100 per 20-footer container and US$200 per 40-footer container on eastbound services from Northern Europe, North Africa and Mediterranean to the Middle East and South Asia.
Since late last month, Maersk Line has been announcing rate increases that included North America-to-Mediterranean and North African trades, North America-to-Middle East and Indian-subcontinent trades as well as Europe-to-Asia trade.
CMA CGM, France’s largest liner company, also decided to implement a rate restoration exercise on its main trades on April 1.
United Arab Shipping Co (UASC) Malaysia Sdn Bhd country general manager, Desmond Yong told StarBiz that the rate restoration was only a measure for shipping companies to continue providing services rather than pulling out from certain trade routes.
“We just cannot lay up our vessels or pull ourselves from a trade route as there are still exporters and importers that need to do business,” he said.
He believed that the restoration was driven more by business survival rather than demand as the trade volume was only inching up.
“The container shipping sector has suffered so much that we cannot even meet our operating costs since the rate slump.
“For example, the freight rate in certain Asia-westbound trade routes are cheaper compared with the trucking cost from Selangor to Melaka,” he said, reiterating that the rate restoration was certainly not a profit-making move.
Jardine Shipping Services country manager Richard Tan said the restoration of rates would not even cover shipping companies’ operating costs.
“If there is any improvement in the container shipping business, it is expected from intra-Asia trade rather than Asia-US or Asia-Europe trade.
“This is because our financial institutions are still strong while countries with huge population, such as China and India are encouraging domestic population,” he said.
CIMB Research said in its latest sector update that a rebound would be more apparent in months to come and the uptrend would probably last for two to three quarters.
“This could be due to typical seasonal trend of restocking of inventories in the United States and Europe.
“We may actually see positive growth in the fourth quarter of this year,” it said.
The research house said container trade volumes could recover sequentially in the second and third quarter this year due to seasonal factors such as back-to-school shopping in the United States and the coming Christmas.
“Given the sharp decline in Asian exports and US/Europe imports over the past six months, we believe some level of restocking should materialise by the second and third quarter of this year.
“This will help boost volumes in the main East-West trades and provide a lift to spot container shipping rates.
“The key risk is continued weakness in retail sales in the major consuming nations, which may lead importers to maintain a lower baseline of inventory than before,” it said.
CIMB Research said another looming danger that might adversely affect the industry would be the supply growth of container vessels.
“The order book is currently about 50% of the existing fleet.
“Even after adjusting for negotiated delays, cancellations, slippage and scrapping, Drewry Shipping Consultants Ltd expects the global container fleet to grow by 10.5% this year, followed by 8% in 2010 and 5.4% in 2011,” it said.
Monday April 27, 2009
Penang Port to go big in barter trade
By DAVID TAN
THE Penang Port Commission (PPC) wants to expand barter-trading activities and bunkering services at the Prai wharf, which will be included in the port’s new 20-year master plan.
The expansion of these activities, which had received the green light from the Transport Ministry, would stimulate economic activities and create job opportunities in the state, PPC chairman Tan Cheng Liang told StarBiz.
She said PPC would go on a roadshow in June in the Asean region to promote the state’s barter-trading activities and bunkering services.
Penang Port’s new master plan is aimed at upgrading the port to meet the needs of a globalised economy.
“Presently, Penang’s barter-trading activities are with Indonesia and Myanmar. We want to expand these activities to other Asean countries,” she said.
The value of cargo handled through the Prai wharf for barter trading with Indonesia and Myanmar improved to RM139mil in 2008 from RM104mil in 2007.
The freight weight tonnage of cargo handled at Prai wharf has increased to 78,748 tonnes from 66,219 tonnes during the same period.
The cargo traded involves mainly steam coal, rubber, urea, sawn timber, marine products, steam-dried fish meal, marine gas oil, and sugar.
“This improvement in value and tonnage is very encouraging and shows that further growth in barter trading activities is achievable,” Tan said.
She also said PPC hoped to rope in private investments for tourism projects to be set up on a piece of land belonging to PPC at the waterfront in Weld Quay.
“We intend to do this after the expansion of Port Swettenham Pier to accommodate cruises with more than 3,000 passengers is completed in September,” she said.
Tan said the tourism projects would also be incorporated into Penang Port’s new 20-year master plan.
»We want to expand barter-trading activities to other Asean countries«TAN CHENG LIANG
She added that the terms and references for the master plan were now being formulated.
“The new plan is aimed at upgrading the port to meet the needs of a globalised economy, one that is not only focused on serving the needs of the Indonesia-Malaysia-Thailand Growth Triangle,” she said.
Tan said PPC was also now conducting an analysis on the strength and weaknesses of the present 20-year master plan that would expire next year.
“We are looking at why certain projects under the plan were delayed,” she added.
Saturday, April 25, 2009
ASIA FREIGHT & SUPPLY CHAIN AWARDS 2009
Malaysia Inc makes big splash at AFSCAs
The 2009 Asian Freight and Supply Chain Awards (AFSCAs) will be remembered as the year Malaysia's transport and logistics companies swept in and captured six major awards.
The 23rd anniversary of the AFSCAs - organised by market leading transport and logistics newspaper Cargonews Asia - unfolded at a glittering gala evening in the Grand Ballroom of the Intercontinental Hotel in Kowloon.
Hundreds of transport, logistics and supply chain executives from around the region gathered to celebrate at the event.
But no celebrations were greater than from the Malaysian contingent, which went home with:
Best Rail Operator: KTM Malaysia;
Best Container Terminal Asia (under 4 million TEUs): Northport;
Best Emerging Airport: Penang International;
Best Air Cargo Carrier Asia: MASkargo;
Best Shipping Line Intra Asia: MISC and
Best Green Airport: Kuala Lumpur International Airport.
DHL won Best Road Haulier Asia, Best Contract Logistics Provider, Best 3PL, Best Lead Logistics Provider and Best Express Operator.
FedEx also shone brightly, winning Best Logistics Service Provider Airfreight, Best All Freighter Airline and Best Air Cargo Carrier North America.
Singapore's Changi Airport maintained its perfect record, flying off with the Best Airport Asia award for the 23rd time, and
the world's biggest container carrier, Maersk Line, maintained its dominance of the liner awards, sailing away with Best Global Shipping Line and Best Shipping Line - Asia-Europe.
But the evening also saw some new faces picking up awards. The biggest upset among the newcomers was DP World, which took the Best Global Terminal Operating Company. OOCL Logistics scooped the Best Logistics Service Provider Sea Freight, Kuehne + Nagel won the Best Logistics Provider Project Cargo and DB Schenker took home the Best Green Logistics Operator.
The awards had an environmentally friendly face for the first time with five Green Service Provider accolades making up the new category. Winners here were the above-mentioned DB Schenker and Kuala Lumpur International Airport, plus the Port of Rotterdam (Best Green Seaport), Singapore Airlines (Best Green Airline) and Maersk Line (Best Green Shipping Line).
The coveted Lifetime Achievement Award was presented to Tung Chee Chen, CEO of Orient Overseas (International) Limited, the parent company of OOCL. The award was in recognition of his work at the forefront of the international shipping industry for many years.
The AFSCAs are widely regarded as the most authoritative and prestigious awards for the industry in Asia and the evening is one of the highlights of the Asian freight industry calendar.
Wednesday, April 8, 2009
PORT NEWS - West Port
Monday April 6, 2009
WESTPORTS Malaysia has bagged two awards at the annual BrandLaureate Awards last week.
The port’s executive chairman Tan Sri G. Gnanalingam received the Brand Personality award for his distinctive branding effort and success.
For more than 30 years, Gnanalingam has been actively involved in brand development for the country that involved small and heavyweight companies, sports, marketing and advertising as well as the corporate world.
From left: The BrandLaureate CEO Dr K.K. Johan, Tun Abdullah Ahmad Badawi, Gnanalingam and Asia Pacific Brands Foundation chairman Tan Sri Dr Elyas Omar.
It was often behind the scene that the marketing wizard undertook brand development and image building initiatives such as the Benson & Hedges Malaysian Open Golf, the 1989 SEA Games hosted by Malaysia and the Westports Millennium Ad.
On the international front, he lent support to campaigns to promote the nation as a transportation hub especially in port industry. Gnanalingam accepted the award from former prime minister Tun Abdullah Ahmad Badawi. The event was organised by the Asia Pacific Brands Foundation.
Westports, as one of the fastest growing terminals in Malaysia, was also awarded the Best Brand in Logistics – Ports.
Gnanalingam said in a statement the awards by BrandLaureate were certainly an honour to Westports’ dedicated and skilful workforce.
“We have continued to innovate and provide the best services to our customers,’’ he said. “Westports was founded around innovation and the pursuit of excellence, and those core values have continued to be at the heart of everything we do.”
Westports bags two brand awards
WESTPORTS Malaysia has bagged two awards at the annual BrandLaureate Awards last week.
The port’s executive chairman Tan Sri G. Gnanalingam received the Brand Personality award for his distinctive branding effort and success.
For more than 30 years, Gnanalingam has been actively involved in brand development for the country that involved small and heavyweight companies, sports, marketing and advertising as well as the corporate world.
From left: The BrandLaureate CEO Dr K.K. Johan, Tun Abdullah Ahmad Badawi, Gnanalingam and Asia Pacific Brands Foundation chairman Tan Sri Dr Elyas Omar.
It was often behind the scene that the marketing wizard undertook brand development and image building initiatives such as the Benson & Hedges Malaysian Open Golf, the 1989 SEA Games hosted by Malaysia and the Westports Millennium Ad.
On the international front, he lent support to campaigns to promote the nation as a transportation hub especially in port industry. Gnanalingam accepted the award from former prime minister Tun Abdullah Ahmad Badawi. The event was organised by the Asia Pacific Brands Foundation.
Westports, as one of the fastest growing terminals in Malaysia, was also awarded the Best Brand in Logistics – Ports.
Gnanalingam said in a statement the awards by BrandLaureate were certainly an honour to Westports’ dedicated and skilful workforce.
“We have continued to innovate and provide the best services to our customers,’’ he said. “Westports was founded around innovation and the pursuit of excellence, and those core values have continued to be at the heart of everything we do.”
Tuesday, April 7, 2009
Tuesday, April 7, 2009
Ika Krismantari, THE JAKARTA POST, JAKARTA | Tue, 04/07/2009 11:01 AM
The United States Export-Import Bank approved more than US$1 billion in financing for Indonesian airlines to improve passenger fleets, generate business and create jobs in Indonesia and throughout the region.
In a press statement in Jakarta on Monday, the US Embassy said the financing was made possible after the ratification and implementation of the Cape Town Treaty, which allows Indonesian airlines to save millions of dollars in financing costs.
“This financing allows Indonesian-registered companies to gain very competitive rates and favorable credit similar to the most advanced countries in the world,” said US Ambassador Cameron R. Hume.
“This action by the US is a vote of confidence for the improvement of aviation regulation and the general business environment in Indonesia,” said Henry Bakti, the Indonesian Transportation Ministry’s director general for air transportation.
The financing will allow Lion Air to access $238 million to purchase new Boeing 737-900ER planes and provide preliminary authorization for another $841 million, for a total of 30 new passenger jets.
Last month, national flag carrier Garuda Indonesia announced the bank’s authorized joint financing of $346 million for increasing its’ fleet.
“We are delighted to offer Lion Air the reduced exposure fee available under this treaty, which reduces the legal risks associated with cross-border, asset-backed aircraft financing and leases,” said Robert Morin, Export-Import Bank vice president of transportation.
The loan facility is expected to boost not only aviation safety but also the country’s image, which has been marred by several air transportation accidents.
Since 2007, the European Commission has banned all Indonesian airliners from flying to EC territory in response to the country’s poor safety record. The government has since tried to improve the airline regulatory system and safety in the hope the EC will revoke the ban. EC representatives have promised to lift the ban, acknowledging the progress Indonesia has made. However, Indonesia will still need to comply with the remaining 10 of 60 flight safety requirements set out by the EC before the ban can be lifted.
At least six incidents of aircrafts skidding off the runaway occurred during the first quarter of this year.
While there were no fatalities, these accidents could signal the government’s sluggish effort to revise safety standards despite EC inspections to ensure the ban could be lifted.
US provides over $1b for RI airline upgrades
Ika Krismantari, THE JAKARTA POST, JAKARTA | Tue, 04/07/2009 11:01 AM
The United States Export-Import Bank approved more than US$1 billion in financing for Indonesian airlines to improve passenger fleets, generate business and create jobs in Indonesia and throughout the region.
In a press statement in Jakarta on Monday, the US Embassy said the financing was made possible after the ratification and implementation of the Cape Town Treaty, which allows Indonesian airlines to save millions of dollars in financing costs.
“This financing allows Indonesian-registered companies to gain very competitive rates and favorable credit similar to the most advanced countries in the world,” said US Ambassador Cameron R. Hume.
“This action by the US is a vote of confidence for the improvement of aviation regulation and the general business environment in Indonesia,” said Henry Bakti, the Indonesian Transportation Ministry’s director general for air transportation.
The financing will allow Lion Air to access $238 million to purchase new Boeing 737-900ER planes and provide preliminary authorization for another $841 million, for a total of 30 new passenger jets.
Last month, national flag carrier Garuda Indonesia announced the bank’s authorized joint financing of $346 million for increasing its’ fleet.
“We are delighted to offer Lion Air the reduced exposure fee available under this treaty, which reduces the legal risks associated with cross-border, asset-backed aircraft financing and leases,” said Robert Morin, Export-Import Bank vice president of transportation.
The loan facility is expected to boost not only aviation safety but also the country’s image, which has been marred by several air transportation accidents.
Since 2007, the European Commission has banned all Indonesian airliners from flying to EC territory in response to the country’s poor safety record. The government has since tried to improve the airline regulatory system and safety in the hope the EC will revoke the ban. EC representatives have promised to lift the ban, acknowledging the progress Indonesia has made. However, Indonesia will still need to comply with the remaining 10 of 60 flight safety requirements set out by the EC before the ban can be lifted.
At least six incidents of aircrafts skidding off the runaway occurred during the first quarter of this year.
While there were no fatalities, these accidents could signal the government’s sluggish effort to revise safety standards despite EC inspections to ensure the ban could be lifted.
OIL & GAS - Crude Oil Pipelines
IndianOil Chairman inaugurates Paradip-Haldia crude oil pipeline
Kalinga Times Correspondent
Paradip, April 4: Sarthak Behuria, Chairman, IndianOil inaugurated the Paradip-Haldia crude oil pipeline system at Paradip on Friday.
The project included, laying 330 km long pipeline linking Paradip with Haldia and Barauni Refineries of IndianOil, installation of a Single Point Mooring (SPM) system in the offshore waters of Paradip and a crude oil tank farm consisting of 15 crude oil storage tanks.
This Rs 1420-crore project is designed to transport 11 million metric tonnes of crude oil per year from Paradip to refineries at Haldia and Barauni, and would effect substantial savings in the cost of transportation besides being environmentally benign. IndianOil is also setting up a state-of-the-art 15 million tonne refinery at Paradip.
Speaking on the occasion, Behuria said pipeline networks offer a major competitive advantage in our bid to streamline and optimize operations, so as to be least cost supplier in the market place. With the completion of this pipeline our roots in the eastern India will go even deeper by providing efficient and reliable supply chain management of crude oil, he said.
Complimenting all those who carried out this gigantic and challenging task of building first offshore pipeline of IndianOil in the eastern coast, Behuria said our engineers who have worked at this site are more confident than ever before to face newer challenges.
The offshore project like the one completed here is a rarity in India , the narrow fair weather window and frequently fluctuating mood of the sea makes the job extremely difficult, he added.
P.K. Chakraborti, Director (Pipelines) said that IndianOil ventured into the high seas of Bay of Bengal to establish its first Single Point Mooring system on the East Coast. A spectacular engineering feat, this onshore pipeline from Paradip to Haldia crosses about 17 major rivers and canals including the mighty Mahanadi and Baitarani, he said.
Now, the Paradip port will become the largest crude oil handling facility on the east coast of India . This pipeline will contribute to the growth of Paradip Port and be the harbinger of greater prosperity in the lives of people in the surrounding areas, said Chakraborti.
With the commissioning of this landmark pipeline, total network of IndianOil's crude oil and petroleum product pipelines touched the magic figure of over 10,000 km.
IndianOil's cross-country pipelines network is 10,064 km in length and 69.60 million metric tonnes per annum (MMTPA) in capacity.
PIRACY
Somali pirates seize container vessel
Somali pirates have seized a 20,000-tonne German container vessel in their latest attack on the Indian Ocean’s busy commercial shipping lanes, the Irish Examiner reported.
Heavily armed gangs from the lawless Horn of Africa nation hijacked dozens of vessels there and in the strategic Gulf of Aden last year, taking hundreds of sailors hostage and making off with millions of dollars in ransoms.
Foreign navies rushed warships to the area in response, reducing the number of successful attacks in recent months. However, there are still near-daily attempts.
Andrew Mwangura of the Mombasa-based East African Seafarers’ Assistance Programme said the latest hijacking happened on Saturday 400 nautical miles off the southern Somali port of Kismayu, between the Seychelles and Kenya.
"We believe the German ship has 24 crew on board. We’re trying to establish their identities and the name of the vessel," Mwangura said.
The German foreign ministry said it was seeking "concrete evidence" that a German-flagged vessel had been captured.
Monday, April 6, 2009
CHINA'S LOGISTICS INDUSTRY
Players Lacking Confidence in China's logistics industry
1. The result of a survey done show that confidence in the present state of the logistics market has, overall, fallen slightly over the past month. The Index dipped from +6.36 to +1.04. Any result above 0 is positive, with a maximum of +100 and a minimum of -100. However looking ahead, respondents were slightly more optimistic than in the previous survey. Confidence in the state of the market in 12 months time was still negative (-20.02) but not as weak as previously indicated (-26.46 in February).
2. The survey revealed that confidence in China has slumped. From being the most confident country in February (+34.38), the index fell sharply into negative territory -13.33. Chinese logistics executives are even less confident about the prospects for the industry in twelve months time. The index fell to -43.33, the lowest of all regions/countries analysed.
3. On the positive side, although confidence amongst US respondents in the present state of the market also fell from February to March (-4.29 to -6.82), there is much more confidence in the state of market over the longer term. The index improves to -4.55 compared with February's 12 month outlook of -17.14 which although still negative is at least moving in the right direction. Whether this is just a temporary improvement in sentiment, perhaps driven by the new US government's re-financing package, will be seen.
4. The Consumer/retail sector showed a worrying weakness in March. Confidence amongst logistics managers in the sector dropped from positive to negative in the period. Unsurprisingly given the worries over the viability of many automotive manufacturers, the automotive sector is the least confident about its long term prospects.
5. As far as individual logistics segments are concerned, executives in the Express Parcels industry were the most confident in its present state (+14.71) and were least negative about its prospects for the next twelve months (-7.35). Once again shipping executives were the most gloomy, the sector reporting an index of -46.15.
Monday, February 16, 2009
Economic Stimulant
How much Malaysia needs for a stimulus package
1. Is 40 billion ringgit in increased spending sufficient to avert a recession?
2. Deputy Prime Minister Najib Razak will introduce a "mini-budget" in Parliament on March 10 to boost the economy. This is expected to be between 10 billion ringgit and 15 billion ringgit .
Note, there was a 7 billion ringgit stimulus package unveiled in November 2008.
3. Widely expected though that it may be insufficient to prevent the economy from slipping into negative growth this year. The manufacturing slump is expected to continue until September, which will hit the export-driven economy.
4. The increased public spending is in the right direction, that more money should be injected into Malaysia's system, especially at a time when external demand has gone down and rising unemployment is impacting domestic demand.
5. As we e are facing real threats of recession, Malaysia needs at least 40 billion ringgit in total or 5 percent of GDP. The measures should not only be aimed at low-income group but also middle-income groups.
6. Note that United States is spending $1.5 trillion or 11 percent of gross domestic product, China $586 billion or 16 percent of GDP and Singapore $13.8 billion or 10.7 percent of GDP.
7. Some even suggested that 2008 should be a tax-free year to ease the people's burden and give cash or introduce a cash-bonus system for middle and low-income workers, families with school-going children, and farmers.
8. The government has slashed its 2009 growth forecast to 3.5 percent, from 5 percent. Is recession here already?
1. Is 40 billion ringgit in increased spending sufficient to avert a recession?
2. Deputy Prime Minister Najib Razak will introduce a "mini-budget" in Parliament on March 10 to boost the economy. This is expected to be between 10 billion ringgit and 15 billion ringgit .
Note, there was a 7 billion ringgit stimulus package unveiled in November 2008.
3. Widely expected though that it may be insufficient to prevent the economy from slipping into negative growth this year. The manufacturing slump is expected to continue until September, which will hit the export-driven economy.
4. The increased public spending is in the right direction, that more money should be injected into Malaysia's system, especially at a time when external demand has gone down and rising unemployment is impacting domestic demand.
5. As we e are facing real threats of recession, Malaysia needs at least 40 billion ringgit in total or 5 percent of GDP. The measures should not only be aimed at low-income group but also middle-income groups.
6. Note that United States is spending $1.5 trillion or 11 percent of gross domestic product, China $586 billion or 16 percent of GDP and Singapore $13.8 billion or 10.7 percent of GDP.
7. Some even suggested that 2008 should be a tax-free year to ease the people's burden and give cash or introduce a cash-bonus system for middle and low-income workers, families with school-going children, and farmers.
8. The government has slashed its 2009 growth forecast to 3.5 percent, from 5 percent. Is recession here already?
Wednesday, February 11, 2009
PORT KLANG
Port Klang to see marked fall in container traffic
1. Container traffic at Port Klang could fall by more than a tenth this year from a year earlier, as the global economic slowdown takes a toll on international trade, the Edge Financial Daily reported.
2. The combined volume of TEU containers at both ports could fall to levels seen in 2007 at some 7.11 million TEUs.
3. PKA is the regulator of Westports and Northport. The combined traffic of TEU containers at both ports rose 12.1 percent to 7.97 million TEUs from 7.11 million TEUs in 2007.
4. Based on projections by both port operators, an expected fall to 7.11 million TEUs in 2009 represents an 11 percent decline from 2008 figures.
5. It is worth noting Port Klang’s achievements in recent years. In 2008, the TEU volume of 7.97 million had ranked the port at 15th place among global peers, up from 16th place in 2007.
1. Container traffic at Port Klang could fall by more than a tenth this year from a year earlier, as the global economic slowdown takes a toll on international trade, the Edge Financial Daily reported.
2. The combined volume of TEU containers at both ports could fall to levels seen in 2007 at some 7.11 million TEUs.
3. PKA is the regulator of Westports and Northport. The combined traffic of TEU containers at both ports rose 12.1 percent to 7.97 million TEUs from 7.11 million TEUs in 2007.
4. Based on projections by both port operators, an expected fall to 7.11 million TEUs in 2009 represents an 11 percent decline from 2008 figures.
5. It is worth noting Port Klang’s achievements in recent years. In 2008, the TEU volume of 7.97 million had ranked the port at 15th place among global peers, up from 16th place in 2007.
GLOBAL OUTLOOK
The Transport & Logistics Global Industry Scan
1. Hactl air cargo volume dives 30.9% in January
Hong Kong's air cargo volume continued to fall with the airport's largest handler Hactl announcing a more than 30 percent decline in January's year-on-year volumes.
2. SAA struggles amid financial turbulence
State-owned South African Airways has incurred losses of US$136 million over the past few years, with debt standing at $177 million at the end of March 2008, it has emerged.
3. Boeing 787 on track for 2010 delivery
Boeing Co's delayed 787 Dreamliner remains on track for its first deliveries in the first quarter of 2010, Reuters reported.
4. Cathay adds new US cargo flights
Cathay Pacific will add two new destinations in the United States to its freighter network as the carrier searches for new markets to bolster sagging cargo volume.
5. US Airways to cut 233 airport positions
US Airways Group, anticipating flying fewer seats this spring and summer, said it plans to trim 233 airport positions at 10 airports it serves, including Las Vegas, Pittsburgh and Tucson, Arizona Dow Jones reported.
6. China Southern, Air France mull cargo joint venture
Market hearsay goes that China's largest airline company by fleet-size, China Southern Airlines is discussing with Air France to set up a joint-venture air cargo company, Xinhua reported.
7. HKAA considers landing-fee cut
The Hong Kong Airport Authority said it will consider requests from airlines to cut landing fees to help carriers survive the turbulent year ahead, the Standard reported.
8. Indian terminal bid under court’s eye
The Supreme Court has upheld a judgment of the Kerala High Court asking the State government to consider the bids of Zoom Developers for the construction of the US$1.
9. Maersk shuts China headquarters
Maersk Line, the world's largest container shipping firm, has closed its Greater China headquarters in Beijing and halved the number of its mainland sub-regional offices to streamline operations amid slowing demand, the South China Morning Post reported.
10. CMA CGM lands Syrian port deal
CMA CGM has signed a 10-year concession agreement with Lattakia Port General Company (LPGC) to manage and operate a container terminal in the Syrian port of Lattakia (Lattakia Container Terminal).
11. Port Klang to see marked fall in container traffic
Container traffic at Port Klang could fall by more than a tenth this year from a year earlier, as the global economic slowdown takes a toll on international trade, the Edge Financial Daily reported.
12. 100 liner services dock at Hamburg
Hamburg has one of the most comprehensive liner networks in Europe, which in turn means that it plays an important role as a transport hub for global cargo flows. Specialised liner traffic connects Hamburg to six continents.
13. Inkel plans to improve Kochi transport system
Infrastructures Kerala (Inkel) has drawn up several proposals to improve Kochi’s public transport system, the Hindu reported.
14. Tianjin to invest over US$5b in transportation
Tianjin, about l37 kilometres southeast of Beijing, plans to invest more than US$5.3 billion in 20 key transportation projects in 2009, SinoCast reported.
(excerpts from Aircargo Asia)
1. Hactl air cargo volume dives 30.9% in January
Hong Kong's air cargo volume continued to fall with the airport's largest handler Hactl announcing a more than 30 percent decline in January's year-on-year volumes.
2. SAA struggles amid financial turbulence
State-owned South African Airways has incurred losses of US$136 million over the past few years, with debt standing at $177 million at the end of March 2008, it has emerged.
3. Boeing 787 on track for 2010 delivery
Boeing Co's delayed 787 Dreamliner remains on track for its first deliveries in the first quarter of 2010, Reuters reported.
4. Cathay adds new US cargo flights
Cathay Pacific will add two new destinations in the United States to its freighter network as the carrier searches for new markets to bolster sagging cargo volume.
5. US Airways to cut 233 airport positions
US Airways Group, anticipating flying fewer seats this spring and summer, said it plans to trim 233 airport positions at 10 airports it serves, including Las Vegas, Pittsburgh and Tucson, Arizona Dow Jones reported.
6. China Southern, Air France mull cargo joint venture
Market hearsay goes that China's largest airline company by fleet-size, China Southern Airlines is discussing with Air France to set up a joint-venture air cargo company, Xinhua reported.
7. HKAA considers landing-fee cut
The Hong Kong Airport Authority said it will consider requests from airlines to cut landing fees to help carriers survive the turbulent year ahead, the Standard reported.
8. Indian terminal bid under court’s eye
The Supreme Court has upheld a judgment of the Kerala High Court asking the State government to consider the bids of Zoom Developers for the construction of the US$1.
9. Maersk shuts China headquarters
Maersk Line, the world's largest container shipping firm, has closed its Greater China headquarters in Beijing and halved the number of its mainland sub-regional offices to streamline operations amid slowing demand, the South China Morning Post reported.
10. CMA CGM lands Syrian port deal
CMA CGM has signed a 10-year concession agreement with Lattakia Port General Company (LPGC) to manage and operate a container terminal in the Syrian port of Lattakia (Lattakia Container Terminal).
11. Port Klang to see marked fall in container traffic
Container traffic at Port Klang could fall by more than a tenth this year from a year earlier, as the global economic slowdown takes a toll on international trade, the Edge Financial Daily reported.
12. 100 liner services dock at Hamburg
Hamburg has one of the most comprehensive liner networks in Europe, which in turn means that it plays an important role as a transport hub for global cargo flows. Specialised liner traffic connects Hamburg to six continents.
13. Inkel plans to improve Kochi transport system
Infrastructures Kerala (Inkel) has drawn up several proposals to improve Kochi’s public transport system, the Hindu reported.
14. Tianjin to invest over US$5b in transportation
Tianjin, about l37 kilometres southeast of Beijing, plans to invest more than US$5.3 billion in 20 key transportation projects in 2009, SinoCast reported.
(excerpts from Aircargo Asia)
Saturday, February 7, 2009
STOCKPILING OIL
Oil players stockpile cheap crude on tankers
Oil demand has plummeted along with home prices and stock market indexes, but discerning where energy demand could go in 2009 isn’t easy.
That’s why, as oil markets attempt to calibrate in the face of this recession, some traders, refiners, big oil companies and other interests have been buying cheap oil in recent weeks and squirreling it away in storage tanks and ships with plans to unload it months from now when prices are higher.
Oil demand has plummeted along with home prices and stock market indexes, but discerning where energy demand could go in 2009 isn’t easy.
That’s why, as oil markets attempt to calibrate in the face of this recession, some traders, refiners, big oil companies and other interests have been buying cheap oil in recent weeks and squirreling it away in storage tanks and ships with plans to unload it months from now when prices are higher.
Sunday, January 25, 2009
Regional liberalisation issues will put pressure on the shipping and logistics industry in the next few years, while this year is expected to be the most difficult, a logistics expert said last week.
The ASEAN fact sheets are as follows:
1. Local logistics service pro-viders will be forced to deal with stiffer competition as a result |of market liberalisation," said |Assoc Prof Ruth Banomyong, director of the Centre for Logistics Research, Thailand.
If the economy is not going |well, users might reduce their demand for global contracts, prompting international service providers to shift their focus to the local market
2. As a member of Asean, Thailand needs to open all modes in its transport and logistics sector - air, rail, road, inland water, and ports and maritime, he said.
3. Policies for the Asean logistics sector roadmap need to promote the integration of Asean national logistics systems, progressive liberalisation of logistics services, increased trade, logistics and investment facilitation, and mul-timodal transport capacity, he |said.
4. Airfreight transport services were designed to open last month and rail and road freight transport services last year. There is no deadline.
5. The other logistics services such as maritime cargo handling, storage and warehousing, freight transport agency, courier, packaging, and custom clearance services were set to be opened by 2013.
6. In terms of Asean rail transport issues, there is still a lack of double tracks, no dedicated tracks for rail freight services, some private freight train operations, some container train operations, no centralised or advanced train control system, and limited intermodal facilities.
7. For Asean road transport, even Thailand would benefit from the East-West Corridor highway linking northern Burma to Vietnam via Thailand and Laos. But there are still some infrastructure problems in newer member countries, high costs in many inland areas, truck bans in major cities, and insufficient harmonised rules and regulations.
8. Thai trucks can run in Laos but are banned in Vietnam and Vietnamese trucks can drive in |Laos but not in Thailand, while Laos has no trucks of its own.
In this case, Thai carriers could operate truck services in Laos by setting up a joint venture with local transport firms there. However, Japan's logistics firms are now operating truck carriage services in Laos.
9. For Asean inland water transport, there was limited usage, services are not fully computerised, and port facilities are not as advanced as seaports.
Asean ports and maritime is probably the most developed mode of transport in the region, with strong mainline connections and relative high level of IT usage, but this varies among countries.
10. The outlook for ship owners, shipyards and ship-owning nations is quite bleak. There is a clear oversupply of dry bulk carriers. "Traders and providers of transport services can do rather little against the fluctuations in freight costs as the industry is in the free market. They cannot control their service prices.
11. Demand for more integrated services will be a trend for logistics service providers.
The ASEAN fact sheets are as follows:
1. Local logistics service pro-viders will be forced to deal with stiffer competition as a result |of market liberalisation," said |Assoc Prof Ruth Banomyong, director of the Centre for Logistics Research, Thailand.
If the economy is not going |well, users might reduce their demand for global contracts, prompting international service providers to shift their focus to the local market
2. As a member of Asean, Thailand needs to open all modes in its transport and logistics sector - air, rail, road, inland water, and ports and maritime, he said.
3. Policies for the Asean logistics sector roadmap need to promote the integration of Asean national logistics systems, progressive liberalisation of logistics services, increased trade, logistics and investment facilitation, and mul-timodal transport capacity, he |said.
4. Airfreight transport services were designed to open last month and rail and road freight transport services last year. There is no deadline.
5. The other logistics services such as maritime cargo handling, storage and warehousing, freight transport agency, courier, packaging, and custom clearance services were set to be opened by 2013.
6. In terms of Asean rail transport issues, there is still a lack of double tracks, no dedicated tracks for rail freight services, some private freight train operations, some container train operations, no centralised or advanced train control system, and limited intermodal facilities.
7. For Asean road transport, even Thailand would benefit from the East-West Corridor highway linking northern Burma to Vietnam via Thailand and Laos. But there are still some infrastructure problems in newer member countries, high costs in many inland areas, truck bans in major cities, and insufficient harmonised rules and regulations.
8. Thai trucks can run in Laos but are banned in Vietnam and Vietnamese trucks can drive in |Laos but not in Thailand, while Laos has no trucks of its own.
In this case, Thai carriers could operate truck services in Laos by setting up a joint venture with local transport firms there. However, Japan's logistics firms are now operating truck carriage services in Laos.
9. For Asean inland water transport, there was limited usage, services are not fully computerised, and port facilities are not as advanced as seaports.
Asean ports and maritime is probably the most developed mode of transport in the region, with strong mainline connections and relative high level of IT usage, but this varies among countries.
10. The outlook for ship owners, shipyards and ship-owning nations is quite bleak. There is a clear oversupply of dry bulk carriers. "Traders and providers of transport services can do rather little against the fluctuations in freight costs as the industry is in the free market. They cannot control their service prices.
11. Demand for more integrated services will be a trend for logistics service providers.
Saturday, January 24, 2009
Budget Airlines-The Indonesian Scenario
Saturday, January 24, 2009
Call to Accommodate Budget Airlines
The Jakarta Globe, Putri Prameshwari, January 23, 2009
We have in the past week heard a lot of rumble regarding Air Asia's proposal to have their own air terminal at Labu. The situation in Indonesia is no different as the basic policy is to allow for any private investor to be a player in the market.
New aviation laws have created the opportunity for private investors to build and operate airports catering to budget or low-cost airlines, an aviation official said this week.
“As long as the investor is fully committed to serving the public, they can build such an airport,” said Budhi Mulyawan Suyitno, the director general of civil aviation at the Ministry of Transportation.
Currently, passengers of low-cost carriers share the same terminals with regular flights.
Under a 2009 aviation law, the private sector can take part in building and managing airports in the country. Presently, airports in eastern Indonesia are managed by state-owned PT Angkasa Pura I, while those in western Indonesia are operated by PT Angkasa Pura II.
Suharto Abdul Majid, the head of the air transportation forum of the Indonesian Transportation Society, said that there should be a clear difference between low-cost carriers and full-service airlines in the country.
“One of the problems is that Indonesian cities don’t have secondary airports that are dedicated to serving passengers of low-cost carriers,” he said, adding that regular airports charged high rates for carriers to rent hangars and aerobridges.
Suharto said that the boundaries between the two kinds of airlines still remained unclear. However, he said, safety should be the main priority, ahead of offering low-priced tickets.
“The government should make a distinction between low-cost and full-service airlines,” he said, adding that the main difference between the two was that “low-cost carriers sell food and beverages.”
Airports for low-cost carriers should still offer safety and comfort for passengers, Budhi said.
“But they should be simpler than regular airports,” he said. “The real challenge is how to make them comfortable for the passengers.”
Following the fall of President Suharto in 1998, the country’s airline industry has grown rapidly. The number of low-cost carriers has increased, but passenger safety and plane maintenance have often been overlooked.
In February 2007, seven of Adam Air’s Boeing 737-300 jetliners were grounded by the Directorate General of Civil Aviation after a hard landing in Surabaya, East Java Province, damaged one of the planes. A month earlier, an Adam Air jetliner with 102 people on board disappeared while flying over the Strait of Makassar.
Friday, January 23, 2009
LOGISTICS-Courier Service
Friday January 23, 2009
Express carrier to compete more on service, less on price
2009 CEO OUTLOOK
GD Express Carrier Bhd CEO Leong Chee Tung says this is also a good time to uphold and improve relationships with clients
YOUR outlook on the express carrier industry for 2009?
With the world in recession, the domestic economy is expected to slow down. We expect the industry to register zero to negative growth due to:
Leong Chee Tung
● lower rates (from lower fuel surcharge)
● lower volume in international trade due to tight credit and credit destruction and hence affecting contract manufacturers in Malaysia
● drop in capital expenditure and investment from businesses due to less capital raising (from initial public offerings) and budget tightening
● reduced domestic consumption from weaker stock market, lower commodity return, stagnant property market, lesser tourism spending and higher unemployment
● generally pessimistic outlook as everybody is expecting more shockwaves from the US and Europe.
Express carriers for the import and export sectors are expected to be harder hit due to the severe situation in the US and Europe. We expect the industry to be more competitive, and many players may resort to price undercutting.
Due to the shrinking market, international express carriers may venture deeper into the domestic carrier business. Related industry players (for example, transport and logistics) may also expand into the express carrier industry.
Within the industry, we may see a possible consolidation as this economic crisis is likely to claim a few casualties. We expect the economic recovery to be slow, possibily not until 2011.
Challenges for the industry, especially in a slowing economy?
The biggest challenge is to break away from the low price-poor service vicious cycle and get into the price-value service virtuous cycle.
In a slow economy, there is greater downward pressure on price from customers. And the draw on industry players into pricing competition will be stronger.
This will result in the whole industry charging sub-normal rates in general, becoming unable to attract the best people, and worse, driving the talents away from the industry. The end result is an industry that provides sub-standard service from sub-standard people.
The reverse is the starting point to any meaningful development in the industry. Competition should be more on service and less on price. But it still won’t guarantee automatic entry into the virtuous cycle.
Regarding people as our asset must occupy the centre value in any successful development for the industry.
That comes to our next point, which is attracting and keeping good people into the industry. The foreign players are doing well on this. The domestic players have to catch up.
The other major challenge is to seek common ground where the industry players can work together for improvement. The Association of Malaysia Express Carriers has made some headway over the past few years. However, more consensus and mutual trust can be achieved if the key players are convinced there are such all-win common grounds to work on.
Strategies to overcome the economic slowdown?
Revenue is vanity. Profit is sanity. And cash flow is realty. As a company, the most important thing to ensure in an economic slowdown is cash flow.
We must ensure our billing, accounting and collection functions are in tip top form. Between profit and cash flow, the latter must be given priority.
From top management to finance personnel, we must practise forward planning in cash management to ensure sufficient buffer for the worst case scenario. Budget discipline must be upheld and sufficient financial lines secured.
We must also maintain good customer relationships. Never mind sales volume may drop or even vanish during this bad period, we must uphold and even improve our relationship with the customers that have supported us during the good times.
If there is a slowdown in business, it is a good opportunity to upgrade the skills of our people by intensifying training programmes. It is also a good time to inculcate the company’s value system in our people.
In summary, our strategy is to enhance our chances of survival while strengthening ourselves.
How GDex can help companies improve their delivery process during this slowdown and in this era of globalisation?
GDex can provide companies with customised logistics solutions on their various distribution and delivery requirements. We will study customers’ needs and propose a solution to outsource their logistics requirements partially or fully.
The end result must be either reduction in cost or improvement in delivery effectiveness, or both.
GDex’s role is to empower its customers with the “reach capability” to all parts of Malaysia in a timely, controlled and reliable environment.
Areas of growth that a homegrown express carrier can enter in the face of competition from established international players in the global market?
The main areas of growth are in non-document areas. Potential growth areas include business-to-business direct distribution from importers/manufacturers to retailers; business-to-consumer Internet order delivery fulfilment and home delivery service. Other new areas include bio-medical and security-handling delivery services.
Express carrier to compete more on service, less on price
2009 CEO OUTLOOK
GD Express Carrier Bhd CEO Leong Chee Tung says this is also a good time to uphold and improve relationships with clients
YOUR outlook on the express carrier industry for 2009?
With the world in recession, the domestic economy is expected to slow down. We expect the industry to register zero to negative growth due to:
Leong Chee Tung
● lower rates (from lower fuel surcharge)
● lower volume in international trade due to tight credit and credit destruction and hence affecting contract manufacturers in Malaysia
● drop in capital expenditure and investment from businesses due to less capital raising (from initial public offerings) and budget tightening
● reduced domestic consumption from weaker stock market, lower commodity return, stagnant property market, lesser tourism spending and higher unemployment
● generally pessimistic outlook as everybody is expecting more shockwaves from the US and Europe.
Express carriers for the import and export sectors are expected to be harder hit due to the severe situation in the US and Europe. We expect the industry to be more competitive, and many players may resort to price undercutting.
Due to the shrinking market, international express carriers may venture deeper into the domestic carrier business. Related industry players (for example, transport and logistics) may also expand into the express carrier industry.
Within the industry, we may see a possible consolidation as this economic crisis is likely to claim a few casualties. We expect the economic recovery to be slow, possibily not until 2011.
Challenges for the industry, especially in a slowing economy?
The biggest challenge is to break away from the low price-poor service vicious cycle and get into the price-value service virtuous cycle.
In a slow economy, there is greater downward pressure on price from customers. And the draw on industry players into pricing competition will be stronger.
This will result in the whole industry charging sub-normal rates in general, becoming unable to attract the best people, and worse, driving the talents away from the industry. The end result is an industry that provides sub-standard service from sub-standard people.
The reverse is the starting point to any meaningful development in the industry. Competition should be more on service and less on price. But it still won’t guarantee automatic entry into the virtuous cycle.
Regarding people as our asset must occupy the centre value in any successful development for the industry.
That comes to our next point, which is attracting and keeping good people into the industry. The foreign players are doing well on this. The domestic players have to catch up.
The other major challenge is to seek common ground where the industry players can work together for improvement. The Association of Malaysia Express Carriers has made some headway over the past few years. However, more consensus and mutual trust can be achieved if the key players are convinced there are such all-win common grounds to work on.
Strategies to overcome the economic slowdown?
Revenue is vanity. Profit is sanity. And cash flow is realty. As a company, the most important thing to ensure in an economic slowdown is cash flow.
We must ensure our billing, accounting and collection functions are in tip top form. Between profit and cash flow, the latter must be given priority.
From top management to finance personnel, we must practise forward planning in cash management to ensure sufficient buffer for the worst case scenario. Budget discipline must be upheld and sufficient financial lines secured.
We must also maintain good customer relationships. Never mind sales volume may drop or even vanish during this bad period, we must uphold and even improve our relationship with the customers that have supported us during the good times.
If there is a slowdown in business, it is a good opportunity to upgrade the skills of our people by intensifying training programmes. It is also a good time to inculcate the company’s value system in our people.
In summary, our strategy is to enhance our chances of survival while strengthening ourselves.
How GDex can help companies improve their delivery process during this slowdown and in this era of globalisation?
GDex can provide companies with customised logistics solutions on their various distribution and delivery requirements. We will study customers’ needs and propose a solution to outsource their logistics requirements partially or fully.
The end result must be either reduction in cost or improvement in delivery effectiveness, or both.
GDex’s role is to empower its customers with the “reach capability” to all parts of Malaysia in a timely, controlled and reliable environment.
Areas of growth that a homegrown express carrier can enter in the face of competition from established international players in the global market?
The main areas of growth are in non-document areas. Potential growth areas include business-to-business direct distribution from importers/manufacturers to retailers; business-to-consumer Internet order delivery fulfilment and home delivery service. Other new areas include bio-medical and security-handling delivery services.
Wednesday, January 21, 2009
ASIAN TOURISM
Asian tourism rocky ride in 2009
(Excerpts from article Published: January 22, 2009
by James Pomfret, Reuters)
The facts are as follows:
1. Across Asia -- hotels, airlines and tourism operators are bracing for another tough year as the financial crisis keeps long haul visitors at home, and regional travellers tighten purse-strings with shorter, budget trips. Hong Kong, Thailand and India have suffered sharp contractions, at times worsened by political turmoil, with many projecting negative growth in 2009.
2. Asia's blend of diverse cultures, geography, bargains and exoticism, with travel gems ranging from snowy Himalayan kingdoms to neon-lit capitals, crumbling Khmer ruins and powdery beaches -- have made it one of the world's fastest growing tourism regions in recent years, along with the Middle East.
3. Hong Kong, now one of Asia's top tourist hubs with 29.5 million visitors last year, is predicting visitor arrivals to dip 1.6 percent in 2009, though a steeper drop of 9.2 percent is forecast for non-Chinese visitors.
4. Singapore's tourist arrivals, meanwhile, fell 2 percent last year with more gloom expected, while Thailand and Malaysia both expect 9 percent drops in visitors this year.
5. The U.N.'s World Tourism Organisation (UNWTO) has described the Asia-Pacific region's performance in 2008 as having "deteriorated most rapidly," compared with the Americas, the Middle East, Europe and Africa, with tourism demand expected to be impacted further in the short to medium term. The UNWTO says it expects the decline in trip duration and spending to be "more pronounced" than the fall in arrivals.
6. The International Air Transport Association (IATA) has warned global airlines face their worst business crisis in 50 years with carriers facing possible collapse, revenues tumbling and hundreds of thousands of jobs at risk. Some 300,000-400,000 jobs were at risk among some 32 million or so people now employed around the world in air transport, travel and tourism sectors.
7. Despite the extremely fragile situation, the Pacific Asia Travel Association (PATA) expects Asia, which lured around 280 million international arrivals in 2008, to bounce back and enjoy 4-5 percent average growth over the next three years.
8. Hotel occupancy rates in the Asia Pacific region fell to 66.7 percent last November, versus 76.4 percent for the same period a year before.
9. People are changing their habits.
10. Political instability and shifting government policies have also exacerbated the strain on the tourism sector in countries such as Sri Lanka, India, Thailand and Macau.
The weeklong siege of Bangkok's airports tarnished Thailand's reputation as a tourist haven, and caused around a million foreign visitors to cancel or go elsewhere.
11. Thailand's Central Bank recently forecast tourist arrivals could fall 9 percent this year to 12.8 million, the worst year since 2005 after the tsunami disaster.
12. In India, 179 people, including scores of tourists, were killed in November's Mumbai attacks, when gunmen targeted luxury hotels and other popular tourist spots in India's financial capital. The gloom has since spread to places such as Goa, one of the country's top tourist draws where visitor arrivals fell 25 percent during the peak season, according to officials.
Saturday, January 17, 2009
LOGISTICS INDUSTRY NEWS-Choppy Waters
Thursday, January 15, 2009
Survival of the fittest
THE local maritime industry is expected to sail in choppy waters this year as global trade continues to decline.
But the impact of the global economic downturn on the country’s goods transportation sector is expected to be cushioned as intra-Asia trade is still at a healthy level.
This is reflected by the fact that all major ports in the country – Westports, Northport and Port of Tanjung Pelepas – met their volume targets last year.
The three ports are only anticipating slower growth this year as they could still rely on intra-Asia transhipments as well as the import and export business.
Northport's container yard in Port Klang.
For example, although the price of crude palm oil has been falling in recent months, exports to India, one of the major importers of our crude palm oil, is still robust.
Northport, a major import and export terminal in Port Klang, posted slightly above three million 20-foot equivalent units (TEUs) last year, up 5% from 2007.
Due to its large exposure to import and export cargo handling, the port is expected to post slower growth this year compared with last year.
But Northport managing director and chief executive officer Datuk Basheer Hassan Abdul Kader earlier said with the company’s low gearing of almost 0%, Northport could withstand the onslaught of the global economic crisis.
Westports, which has more transhipment business, is in somewhat better shape in terms of volume.
But the declining trade is also affecting Westports’ volume to a certain extent, and the port does not expect its “usual” double-digit growth this year.
The port recorded about 16% volume growth in 2008 to slightly less than five million TEUs.
The country’s main transhipment port, Port of Tanjung Pelepas, posted just below 5.8 million TEUs last year, slightly below expectation, but an increase of about 6.1% over 2007.
Malaysian shipping companies which are mainly involved in the container, bulk and crude palm oil (CPO) transportation are also not spared from the whiplash of the global economic crisis.
MISC Bhd, which operates a relatively small container shipping business compared with its main activity of liquefied natural gas (LNG) transportation, should withstand the lower demand in container cargo.
The country’s major bulk carrier operator, Malaysian Bulk Carriers Bhd (Maybulk), has now ventured into the lucrative offshore support vessel (OSV) market after a collapse in bulk transportation where the Baltic Dry Index plunged more than 90% from its peak of 11,793 points on May 20.
Maybulk has also completed its proposal to acquire a 22.08% stake in PACC Offshore Services Holdings (POSH) for US$221mil.
Based on the current local and international demand, the OSV sector outlook is expected to be positive this year.
For main players in the OSV market such as Alam Maritim Resources Bhd and Tanjung Offshore Bhd, it should be smooth sailing.
The current stronger oil price, which breached US$50 per barrel recently, will also propel OSV demand to greater heights this year.
But future financing for fleet expansion could be difficult as banks are getting jittery on lending, especially for this particular capital-intensive industry.
Thinking ahead, Alam Maritim recently entered into a joint venture with CIMB Private Equity to acquire five vessels for a total of US$70mil.
The local logistics sector is already feeling the pinch of the declining trade. This is due to Port Klang’s monthly volume that has contracted by as much as 25% in the past few months.
On the bright side, the current economic turmoil will result in the survival of the fittest and make the industry less fragmented.
Source: Star Online
Survival of the fittest
THE local maritime industry is expected to sail in choppy waters this year as global trade continues to decline.
But the impact of the global economic downturn on the country’s goods transportation sector is expected to be cushioned as intra-Asia trade is still at a healthy level.
This is reflected by the fact that all major ports in the country – Westports, Northport and Port of Tanjung Pelepas – met their volume targets last year.
The three ports are only anticipating slower growth this year as they could still rely on intra-Asia transhipments as well as the import and export business.
Northport's container yard in Port Klang.
For example, although the price of crude palm oil has been falling in recent months, exports to India, one of the major importers of our crude palm oil, is still robust.
Northport, a major import and export terminal in Port Klang, posted slightly above three million 20-foot equivalent units (TEUs) last year, up 5% from 2007.
Due to its large exposure to import and export cargo handling, the port is expected to post slower growth this year compared with last year.
But Northport managing director and chief executive officer Datuk Basheer Hassan Abdul Kader earlier said with the company’s low gearing of almost 0%, Northport could withstand the onslaught of the global economic crisis.
Westports, which has more transhipment business, is in somewhat better shape in terms of volume.
But the declining trade is also affecting Westports’ volume to a certain extent, and the port does not expect its “usual” double-digit growth this year.
The port recorded about 16% volume growth in 2008 to slightly less than five million TEUs.
The country’s main transhipment port, Port of Tanjung Pelepas, posted just below 5.8 million TEUs last year, slightly below expectation, but an increase of about 6.1% over 2007.
Malaysian shipping companies which are mainly involved in the container, bulk and crude palm oil (CPO) transportation are also not spared from the whiplash of the global economic crisis.
MISC Bhd, which operates a relatively small container shipping business compared with its main activity of liquefied natural gas (LNG) transportation, should withstand the lower demand in container cargo.
The country’s major bulk carrier operator, Malaysian Bulk Carriers Bhd (Maybulk), has now ventured into the lucrative offshore support vessel (OSV) market after a collapse in bulk transportation where the Baltic Dry Index plunged more than 90% from its peak of 11,793 points on May 20.
Maybulk has also completed its proposal to acquire a 22.08% stake in PACC Offshore Services Holdings (POSH) for US$221mil.
Based on the current local and international demand, the OSV sector outlook is expected to be positive this year.
For main players in the OSV market such as Alam Maritim Resources Bhd and Tanjung Offshore Bhd, it should be smooth sailing.
The current stronger oil price, which breached US$50 per barrel recently, will also propel OSV demand to greater heights this year.
But future financing for fleet expansion could be difficult as banks are getting jittery on lending, especially for this particular capital-intensive industry.
Thinking ahead, Alam Maritim recently entered into a joint venture with CIMB Private Equity to acquire five vessels for a total of US$70mil.
The local logistics sector is already feeling the pinch of the declining trade. This is due to Port Klang’s monthly volume that has contracted by as much as 25% in the past few months.
On the bright side, the current economic turmoil will result in the survival of the fittest and make the industry less fragmented.
Source: Star Online
Friday, January 9, 2009
SDC NEWS: Sabah Economic Development Implementation Authority
State Assembly to approve Sedia: CM
Kota Kinabalu: The Sabah Development Corridor (SDC) is moving into first gear with the approval of a proposal to form a co-ordinating body to be named Sabah Economic Development and Investment Authority (Sedia) by the State Cabinet, Thursday.
Chief Minister Datuk Seri Musa Haji Aman said a special State Legislative Assembly session on Jan. 15 would specifically discuss and approve Sedia's legal formation.
"Sedia would be gazetted as the SDC implementing authority once it receives two third support members of the Assembly during the meeting next week," he said after chairing the State Cabinet meeting at Wisma Innoprise, Thursday.
There are 60 members in the Assembly comprising of 59 Barisan Nasional and a sole opposition assemblyman from DAP. On Sedia's role and function, Musa, who is also Finance Minister, said it would also be discussed during the assembly session.
Prime Minister Datuk Seri Abdullah Ahmad Badawi had launched the SDC on Jan. 29, last year at Sepanggar Bay Port here. It is a development programme for Sabah within an 18-year period until 2025, in line with the Abdullah's aspiration for Malaysia survival in the next 50 years.
It would become a platform for the people of Sabah to overcome the challenges ahead at least for the first half of the period.
Musa said that they would be appointing Sedia's Chief Executive Officer (CEO) and other officers including and board members later.
He was confident that with the formation of the body, it would be able to assist in the achievement of the SDC targets and at the same time to develop Sabah.
To this end, he urged all Sabah elected representatives and MPs to frequently turun padang (go down to the field) to ensure the smooth and successfully implementation of the SDC.
He said they must ensure that all the projects are implemented for the benefit of the people. "We need the support from everyone to ensure that what had been planned could and would be implemented," he said.
He said some projects under the SDC were just waiting to take off while other are still at the discussion table stage.
Excerpt: courtesy of Daily Express
Kota Kinabalu: The Sabah Development Corridor (SDC) is moving into first gear with the approval of a proposal to form a co-ordinating body to be named Sabah Economic Development and Investment Authority (Sedia) by the State Cabinet, Thursday.
Chief Minister Datuk Seri Musa Haji Aman said a special State Legislative Assembly session on Jan. 15 would specifically discuss and approve Sedia's legal formation.
"Sedia would be gazetted as the SDC implementing authority once it receives two third support members of the Assembly during the meeting next week," he said after chairing the State Cabinet meeting at Wisma Innoprise, Thursday.
There are 60 members in the Assembly comprising of 59 Barisan Nasional and a sole opposition assemblyman from DAP. On Sedia's role and function, Musa, who is also Finance Minister, said it would also be discussed during the assembly session.
Prime Minister Datuk Seri Abdullah Ahmad Badawi had launched the SDC on Jan. 29, last year at Sepanggar Bay Port here. It is a development programme for Sabah within an 18-year period until 2025, in line with the Abdullah's aspiration for Malaysia survival in the next 50 years.
It would become a platform for the people of Sabah to overcome the challenges ahead at least for the first half of the period.
Musa said that they would be appointing Sedia's Chief Executive Officer (CEO) and other officers including and board members later.
He was confident that with the formation of the body, it would be able to assist in the achievement of the SDC targets and at the same time to develop Sabah.
To this end, he urged all Sabah elected representatives and MPs to frequently turun padang (go down to the field) to ensure the smooth and successfully implementation of the SDC.
He said they must ensure that all the projects are implemented for the benefit of the people. "We need the support from everyone to ensure that what had been planned could and would be implemented," he said.
He said some projects under the SDC were just waiting to take off while other are still at the discussion table stage.
Excerpt: courtesy of Daily Express
Thursday, January 8, 2009
CITY TRAIN FOR KOTA KINABALU
A CASE FOR ELEVATED CITY TRAIN FOR KOTA KINABALU
The concept of elevated city train (see headlines in Daily Express, thursday 8th January, 2008) is a must for Kota kinabalu if we are to see efficient movement of people within the city for its future plan. I have through a blog entitled "Mass Transit System KK to 1Borneo" in the SDC Blog (www.sabahcorridor.com) talks about the same concept. A City is a city full of people moving about. These movements must be planned so that people movement will be efficient. In modern days and as proven by experiences of other cities, like Kuala Lumpur, to move people on the ground would not be practical anymore due to the complexities of resolving buildings, land and people's interest, that not only it is already congested but when all approvals obtained to put in more roads or widen them, you would already need to upgrade them again.
The Chartered Institute of Logistics and Transport Malaysia (CILTM), Sabah Section, is in full support of what Suria Capital Holdings Bhd Group Managing Director had stated in the Daily today by pointing out several reasons why it should be built. We from CILTM as the body that has interest in the improvement of the quality of transportation needs and services at large, categorically and will see it fit that to build Kota Kinabalu for tomorrow we must start now. The act of shooting down the proposal by Keretapi Tanah Melayu Berhad (KTMB) with cost as the reason is not looking at it from the state point of view and interests. Perhaps this is the time that the state have a say in the matter for the sake of its future. As proven by KTMB itself its Komuter service serves as a mass transportation system from as far as Port Klang and Seremban to Kuala Lumpur. I would not dare to imagine the catastrophic effect on people's movement if this system is not in place.
Here in Kota Kinabalu, we are only talking about very short distance. The Group MD of Suria stated Kota Kinabalu to Lok Kawi yes agree, very scenic. Serving KKIA yes. And we from CILTM is saying provide another avenues from KK in a northerly direction to 1Borneo. It is as scenic, passing through Likas Bay and serving a lot of activity areas such as government comlplexes, residential areas and of course our very own university, University Malaysia Sabah (UMS), before reaching 1Borneo. How far is the distance that we are talking about? hardly 10 kilometres.
Another issue which we would like raised up, is, with elevated train it is time to get these trains into the city again and not stop at Tg Aru or worse still that they are considering to move it further from the city at either Putatan or Lok Kawi. This is going back into medieval days. Kota Kinabalu must move with the changing times. If Kuala Lumpur is the capital city, Kota Kinabalu being the second busiest airport in the country has a case at hand.
Please everyone, The Ministry of Infrastructure Development, the State Economic Planning Unit, UMS and all NGO's, let us put our heads together and say it in a single voice that we want this system.
Hj Ramli Amir
Chairman
The Chartered Institute of Logistics & Transport Malaysia, Sabah Section.
The concept of elevated city train (see headlines in Daily Express, thursday 8th January, 2008) is a must for Kota kinabalu if we are to see efficient movement of people within the city for its future plan. I have through a blog entitled "Mass Transit System KK to 1Borneo" in the SDC Blog (www.sabahcorridor.com) talks about the same concept. A City is a city full of people moving about. These movements must be planned so that people movement will be efficient. In modern days and as proven by experiences of other cities, like Kuala Lumpur, to move people on the ground would not be practical anymore due to the complexities of resolving buildings, land and people's interest, that not only it is already congested but when all approvals obtained to put in more roads or widen them, you would already need to upgrade them again.
The Chartered Institute of Logistics and Transport Malaysia (CILTM), Sabah Section, is in full support of what Suria Capital Holdings Bhd Group Managing Director had stated in the Daily today by pointing out several reasons why it should be built. We from CILTM as the body that has interest in the improvement of the quality of transportation needs and services at large, categorically and will see it fit that to build Kota Kinabalu for tomorrow we must start now. The act of shooting down the proposal by Keretapi Tanah Melayu Berhad (KTMB) with cost as the reason is not looking at it from the state point of view and interests. Perhaps this is the time that the state have a say in the matter for the sake of its future. As proven by KTMB itself its Komuter service serves as a mass transportation system from as far as Port Klang and Seremban to Kuala Lumpur. I would not dare to imagine the catastrophic effect on people's movement if this system is not in place.
Here in Kota Kinabalu, we are only talking about very short distance. The Group MD of Suria stated Kota Kinabalu to Lok Kawi yes agree, very scenic. Serving KKIA yes. And we from CILTM is saying provide another avenues from KK in a northerly direction to 1Borneo. It is as scenic, passing through Likas Bay and serving a lot of activity areas such as government comlplexes, residential areas and of course our very own university, University Malaysia Sabah (UMS), before reaching 1Borneo. How far is the distance that we are talking about? hardly 10 kilometres.
Another issue which we would like raised up, is, with elevated train it is time to get these trains into the city again and not stop at Tg Aru or worse still that they are considering to move it further from the city at either Putatan or Lok Kawi. This is going back into medieval days. Kota Kinabalu must move with the changing times. If Kuala Lumpur is the capital city, Kota Kinabalu being the second busiest airport in the country has a case at hand.
Please everyone, The Ministry of Infrastructure Development, the State Economic Planning Unit, UMS and all NGO's, let us put our heads together and say it in a single voice that we want this system.
Hj Ramli Amir
Chairman
The Chartered Institute of Logistics & Transport Malaysia, Sabah Section.
Tuesday, January 6, 2009
Economy Is Getting Real Bad
Downturn in European logistics industry starts to bite
23/Dec/2008 by John Manners-Bell.
The European road freight and contract logistics sectors are increasingly feeling the effects of the economic downturn. In the past few weeks a succession of job losses have been revealed as logistics companies and their customers have cut back or gone bust.
Major Dutch road operator Vos Logistics, for example, is making 345 staff redundant − 145 in the Netherlands and 200 spread across Poland, France and Hungary. Temporary workers will also be affected and some trucks sold off due, according to a company statement, to a sharp decline in freight volumes since October. Some parts of the group have seen a fall of 30% in revenue.
In the UK, 350 workers employed by DHL Exel at furniture retailer MFI's distribution centre in Doncaster, England, have been made redundant. Although DHL is looking for an alternative customer for the site, that will be a challenging task in the present economic environment and there are fears that the warehouse will close completely in February 2009.
Meanwhile, European logistics provider Wincanton is to lay off up to 188 of its employees based at two UK sites, Rochdale and Swindon, Wiltshire, following the decision by Woolworths' administrators to close down that retailer's chain of stores. That is in addition to a reported 900 job losses which will take place when Wincanton's cool chain network is merged with that of rival Culina. Wincanton's depots at Gloucester and Trafford Park, both in England, will be shut.
In France, industry trade association FNTR has revealed that the number of transport companies going bankrupt has soared by 97% to 2,055 in the first eleven months of the year. The situation is even worse for those with more than 50 staff, where the company failure rate has soared by 278%.
In Germany, an on-going survey of logistics companies undertaken by consultancy SCI Verkher has revealed that 70% of operators have experienced a slowdown in volumes and revenues. Around half reported delays in projects and 30% have seen customers go bust. The consultancy commented that German operators had seen a strong first nine months of the year up to the end of September. From that time on the financial crisis had started to impact severely.
Note: I hope we could get some statistics from the Malaysian Authorities so that we could check how bad is the situation over here.
23/Dec/2008 by John Manners-Bell.
The European road freight and contract logistics sectors are increasingly feeling the effects of the economic downturn. In the past few weeks a succession of job losses have been revealed as logistics companies and their customers have cut back or gone bust.
Major Dutch road operator Vos Logistics, for example, is making 345 staff redundant − 145 in the Netherlands and 200 spread across Poland, France and Hungary. Temporary workers will also be affected and some trucks sold off due, according to a company statement, to a sharp decline in freight volumes since October. Some parts of the group have seen a fall of 30% in revenue.
In the UK, 350 workers employed by DHL Exel at furniture retailer MFI's distribution centre in Doncaster, England, have been made redundant. Although DHL is looking for an alternative customer for the site, that will be a challenging task in the present economic environment and there are fears that the warehouse will close completely in February 2009.
Meanwhile, European logistics provider Wincanton is to lay off up to 188 of its employees based at two UK sites, Rochdale and Swindon, Wiltshire, following the decision by Woolworths' administrators to close down that retailer's chain of stores. That is in addition to a reported 900 job losses which will take place when Wincanton's cool chain network is merged with that of rival Culina. Wincanton's depots at Gloucester and Trafford Park, both in England, will be shut.
In France, industry trade association FNTR has revealed that the number of transport companies going bankrupt has soared by 97% to 2,055 in the first eleven months of the year. The situation is even worse for those with more than 50 staff, where the company failure rate has soared by 278%.
In Germany, an on-going survey of logistics companies undertaken by consultancy SCI Verkher has revealed that 70% of operators have experienced a slowdown in volumes and revenues. Around half reported delays in projects and 30% have seen customers go bust. The consultancy commented that German operators had seen a strong first nine months of the year up to the end of September. From that time on the financial crisis had started to impact severely.
Note: I hope we could get some statistics from the Malaysian Authorities so that we could check how bad is the situation over here.
Port News-World's #2 Container Port
Shanghai port held on to its world's no. 2 container port status
Shanghai port handled 28 million TEUs last year, growing its throughput by almost seven percent despite China's rapidly slowing exports.
The annual throughput was reported by China Knowledge Press, which announced that Shanghai had managed to hold on to its world No 2 container port status.
Singapore has yet to officially release its own annual throughput figures, but with 27.6 million TEUs having been handled between January and November, the city-state is certain to maintain its No 1 position.
Shanghai's Waigaoqiao Port handled 15 million TEUs last year, accounting for more than 54 percent of Shanghai's total volume.
Yangshan Deep-water Port handled 8.2 million TEUs as the last phase of its northern section was completed and became fully operational early last month, adding 2.2 million boxes to its existing handling capacity.
Shanghai's total container throughput was 26.1 million in 2007.
@Cargo News Asia
Shanghai port handled 28 million TEUs last year, growing its throughput by almost seven percent despite China's rapidly slowing exports.
The annual throughput was reported by China Knowledge Press, which announced that Shanghai had managed to hold on to its world No 2 container port status.
Singapore has yet to officially release its own annual throughput figures, but with 27.6 million TEUs having been handled between January and November, the city-state is certain to maintain its No 1 position.
Shanghai's Waigaoqiao Port handled 15 million TEUs last year, accounting for more than 54 percent of Shanghai's total volume.
Yangshan Deep-water Port handled 8.2 million TEUs as the last phase of its northern section was completed and became fully operational early last month, adding 2.2 million boxes to its existing handling capacity.
Shanghai's total container throughput was 26.1 million in 2007.
@Cargo News Asia
Saturday, January 3, 2009
China's Port Development Strategy Overseas-A Political Strategy
China uses ports to protect trade lanes
This report is a concern to the United States Military Authorities as it will share its dominance of the control of the sealanes with another up and coming superpower like China.
A port being built in southern Sri Lanka near the main shipping route across the Indian Ocean is part of a Chinese effort to project influence and protect vital trade lanes, according to a US military study, Asia Pulse reported.
The study lists the commercial-shipping container port at Hambantota being built by Chinese contractors as part of China's so-called "string of pearls" strategy to gain political influence and be able to project power in the Indian Ocean region.
It lists China as the main emerging nation-state threat that US forces could confront in a future conflict, along with potential threats from Russia, the Middle East and other places in Asia.
Other facilities listed in the report are Pakistan's Gwadar port, near the mouth of the Persian Gulf, as a naval base and surveillance facility, and the Woody Island airfield in the Paracel Islands in the South China Sea.
These are listed as being useful to China as part of the Chinese shipping-lane-protection strategy.
The US military report identifies China as the most significant potential threat for the American military in the future.
The paper said the report discloses new details of what it describes as Beijing's efforts to build political influence and military power along the strategic oil-shipping route from the Middle East to China, a so-called "string of pearls" strategy.
"China is conducting cooperation with some Asian countries in various fields including ports development, but it's justifiable business for China and the joint ventures are for commercial purposes only," A spokesman was quoted as saying.
"People should see China's activities with a sensible and more balanced approach. As facts have proven, China's activities are for mutual benefit and peaceful purposes, constituting no threat to anyone else."
Construction work on the port in Hambantota is ahead of schedule.
It is being built mainly with a Chinese loan and by two Chinese construction firms. It would be interesting to look at the terms and conditions of the loan as it would throw some light to any hidden agenda that China may have in its effort to have control of important sealanes between the oil producing nation in the Middle East and their homeland.
It is envisaged first as a bunkering facility and later a port for general cargo vessels and eventually to tranship containers. When one envisaged a port as a bunkering facility it is a way of saying that the port would be a base for them to operate from when political situation demands it.
Hambantota was chosen as the site for the new port because of its proximity to the main shipping lane across the Indian Ocean.
Friday, January 2, 2009
Safety In The Sky
Hi everyone!
I am sure that there are a many of us who has got fears about flying, be it because of the heights, past experiences and just being in an enclosed space high up on air, wants to ensure that plane riding is as safe as being on the road to make these fear go away. But many of us dont realise that there are more death on the road than due to accidents up in the air. Accidents on the road happens everyday whilst airspace accident is far smaller but when it happen it causes the lost of many lives.
Perhaps as a matter of educating ourselves on how the Authorities involved in the safety of aeroplane, it is good to open ourselves to a few of incidences that shows the limits and capabilities of aeroplanes and how the Authorities wants to ensure that only when a plane is certified beyond doubt that it is safe for commercial operations, can it be allowed to carry passengers.
Below, Ben Sandilands talks about plane safety as it affects an Airbus A330 and a Boeing 777 owned by our very own Malaysia Airlines.
I am sure that there are a many of us who has got fears about flying, be it because of the heights, past experiences and just being in an enclosed space high up on air, wants to ensure that plane riding is as safe as being on the road to make these fear go away. But many of us dont realise that there are more death on the road than due to accidents up in the air. Accidents on the road happens everyday whilst airspace accident is far smaller but when it happen it causes the lost of many lives.
Perhaps as a matter of educating ourselves on how the Authorities involved in the safety of aeroplane, it is good to open ourselves to a few of incidences that shows the limits and capabilities of aeroplanes and how the Authorities wants to ensure that only when a plane is certified beyond doubt that it is safe for commercial operations, can it be allowed to carry passengers.
Below, Ben Sandilands talks about plane safety as it affects an Airbus A330 and a Boeing 777 owned by our very own Malaysia Airlines.
Another entry for the Airbus A330 X-files!
January 2, 2009 – 6:58 pm, by Ben Sandilands
The Harold E Holt naval communications base near Exmouth on WA’s North West Cape is about to get worked over again as a menace to airliners, at least in the excitable media.
A short while ago the Australian Transport Safety Bureau released this brief but important statement concerning a Qantas A330-300 that experienced an unexplained autopilot disconnection in the early stages of operating QF 71, the Perth to Singapore service on 27 December. The flight returned to Perth without incident other than making a routine ‘overweight’ landing, which meant that it required an additional inspection before being returned to service.
On 7 October a similar Qantas A330-300 operating QF 72 from Perth to Singapore was not so fortunate when it experienced an autopilot disconnection without warning on the final stage of its flight in the opposite direction. A series of bewildering malfunctions ensued, including a brief uncontrolled climb, and two short uncontrolled dives, the first of which was so violent it injured 74 passengers or crew, 14 of them seriously, and lead to an emergency landing at Learmonth.
The Australian Transport Safety Bureau says that “as it appears to be similar…to a previous event…it will be included as part of the earlier investigation.”
That continuing investigation is the most important the ATSB has ever embarked on as it affects the safe operation of hundreds of Airbus A330s in service world wide, and involves the US and French air safety authorities as well as Airbus and Qantas.
The core concern is one of three vital flight data computers called Air Data Inertial Reference Units or ADIRUs which provide the pilots and the autopilot functions with speed and attitude information. The same unit, ADIRU number 1, was the prime source of this vital data when each flight experienced autopilot failure.
On QF 71, on 27 December, the pilots followed the latest revised instructions for dealing with a failure of the unit. That advice, which has itself been revised several times since the QF 72 inquiry began, may have been material in avoiding another serious incident, although confirmation of this will depend on the course of the investigation.
Electromagnetic interference with the A330’s systems by the VLF or very long frequency antenna array at the Harold E Holt base was all but completely ruled out by the ATSB early in the QF 72 inquiry.
The loss of control aboard QF 72 occurred when the A330 was 154 kilometres west of Learmonth. QF 71 was more than four times further away at a point 630 kilometres south of Learmonth, or nearly as remote from the vicinity of the base as Melbourne is from Sydney.
The A330 operating QF 71 was not the same jet that was flying QF 72, although that particular A330 has been repaired and returned to service. Thousands of jets have flown as close if not closer to the naval base than either QF 71 or QF 72 since it was opened, including more than 14 A330s each week in recent years.
A Malaysia Airlines 777 experienced a serious ADIRU unit failure in the general area on 1 August 2005 while flying from Perth to Kuala Lumpur. However in that incident the unit was of a different design and manufacture, and the problem that the pilots had to overcome before making an emergency landing was an uncommanded climb to 42,000 feet at which point the jet exhibited stall warnings.
To paraphrase agent Mulder in the X-Files, the truth about these incidents is out there, somewhere, and unlikely to get in the way of a good tabloid headline or two.
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