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No direct shipping from Ukraine

KUALA LUMPUR: Malaysian ports trade directly with those in Turkey and Malta, instead of Ukraine.

As such, Transport Minister Datuk Seri Wee Ka Siong said the country's shipping business was not directly impacted by the ongoing Russian invasion of Ukraine.

"We do not deal directly with Ukrainian ports unless we have a port-to-port commitment or connectivity.

"Our dealings are more with Turkish and Maltese ports. We, however, remain guided by the Foreign Ministry and International Trade and Industry Ministry.

"The government's policy is to abide by the constitution and the rule of law, and comply with the country's commitment to the international community," he said.

He said this after officiating the '19th Asean Ports and Shipping Exhibition and Conference' themed 'Cultivating Adaptability and Resilience', at the Intercontinental Hotel in Jalan Ampang.

On another note, Wee said Port Klang in Selangor and the Port of Tanjung Pelepas (PTP) in Johor were ranked 12th and 15th as the world's busiest ports last year, respectively.

Port Klang, he said, could have beaten the United Arab Emirates' Dubai port if the peninsula was not hit by the monsoon flash-floods last December.

Port Klang's average daily operation involved about 35,000 twenty-foot equivalent units (TEUs), short by 20,000 TEUs of Dubai.

"Port Klang and PTP will boost their capacity in line with trade growth.

"Port Klang will increase its capacity by 60 per cent to 32 million TEUs annually by 2040, while PTP will see its present capacity increased by 3.5 million TEUs by 2025," he said.

Malaysian ports, he added, registered an average trade growth of 3 per cent in compounded cargo throughput over the last decade.

"In 2020, global volumes fell less dramatically than expected (from the Covid-19 pandemic) and the industry was seeing a rebound by the end of the same year.

"Port Klang, for example, recorded a smaller-than-anticipated decline of 2.5 per cent in container throughput to 13.2 million TEUs.

"Last year, volume rebounded by 3.6 per cent to a record 13.7 million TEUs, the best performance to date since container operations began in 1973.

"Initially, the sector contracted but it rebounded quickly, with 90 per cent of Malaysia's trade by sea, given the country's strategic position in the Straits of Malacca and the South China Sea.

"So, that is why no shipping means no shopping. This is the biggest maritime contribution to Malaysia," said Wee.

He noted that PTP in Johor performed magnificently with a 14 per cent increase in volume, to achieve a record throughput of 11.2 million TEUs last year.

He called on the industry to transform into the digitalisation of operations, utilise more electronics and become paperless for online transactions.

"Malaysian ports have to invest in new expansions and technologies to meet the rise of online commerce, which has been increased and enhanced by changing consumer shopping habits and spending patterns all over the world.

"The growth in online trade has increased demand for distribution and warehousing facilities that are digitally enabled and offer value-added services.

"Initiatives such as the Digital Free Trade Zone, which targets to intensify export and import via e-commerce, would further drive growth.

"This will reduce waiting time and focus more on environmental sustainability," said Wee, adding that the country's maritime industry contributed about 40 per cent of the country's gross domestic product.

He also commended the excellent performance by Westport and Northport in Port Klang in shoring up the country's economy.

"This is despite Covid-19's multi-year disruptions to shipping services, cargo volume, connectivity and port and landside operations.

"We should pay close attention to strengthening financial resilience, sustainable or green initiatives and look at larger horizons in terms of investment strategies to build up our ports and logistic industries," Wee said.

Under the National Transport Policy 2019-2030, the government is expected play a stronger facilitating role to create a conducive, intelligent and safe ecosystem for the transport industry.

"This will help the industry thrive and ensure seamless movement of goods to boost trading activities while gradually reducing carbon footprints.

"The government has taken cognizance of the risks of climate change and introduced many green initiatives for the various sectors of the economy, including the maritime sector," he said.

Malaysia as a flag, port and coastal state has ratified 26 of the 58 International Maritime Organization conventions to ensure safe and secure shipping, with the protection of the marine environment being a major priority.

Wee said that under the 12th Malaysia Plan, the country strived to reduce greenhouse gas emissions by 45 per cent of the gross domestic product by 2030,

"Malaysia is also participating in the IMO's 'Green Voyage 2050 Project' to help developing countries meet their commitments to achieve climate change and energy efficiency goals by bringing about radical changes to shipping operations and ship engine designs for energy efficiency," said Wee.

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