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Southpoint touted to be region’s largest cargo hub

October 19, 2007


Southpoint touted to be region’s largest cargo hub

The RM100 million major redevelopment of Southpoint in Port Klang will transform the port into one of the largest conventional cargo hub ports in the region to handle more non-containerised trade.

Northport (Malaysia) Bhd managing director and chief executive officer Datuk Basheer Hassan Abdul Kader said the redevelopment is aimed at serving not only bigger ships but also a greater variety of cargo vessels.

"The expansion will provide a major boost to a growing variety of conventional cargo traffic to be handled at Southpoint which is positioning itself as a major regional hub port to handle more non-containerised trade," Basheer told Bernama recently.

The port, formerly known as Southport, was traditionally used for regional trading purposes and linked to smaller ports in Sabah, Sarawak, Indonesia, Myammar and Vietnam.

According to him, the investment in Southpoint came after Klang Port Authority (KPA) gave the greenlight to develop 8.8ha (22 acres) into a multipurpose yard for value adding and storage activities, especially to cater the increased traffic generated at the port.

This area is within the customs free zone of the port and includes land occupied by Federal Flour Mills Bhd (FFM) and Felda.

The 4.2ha (10.5 acres) previously used by FFM will be developed as a storage and cargo consolidation point as well as for value-adding activities, together with the three acres (1.2ha) occupied by Felda.

Loose or breakbulk cargoes arriving from outlying ports in the region will be consolidated or re-packaged here into containers for re-export or transshipment, he said.

Basheer said the development at Southpoint - which involves the re-development of three berths as well as expansion of landside storage capacity - will more than double the present cargo handling capacity of Northport to about 14 million tonnes.

Southpoint, which is operated by Northport Malaysia, has a capacity to handle 4.3 million twenty-foot equivalent container units (TEUs) and is not only strategically well-positioned but offers several key advantages as a conventional cargo hub over others in the region.

The expansion will enable Southpoint to cope with heavier traffic movement and the bigger general cargo ships that are expected to make their presence at the port.

Currently, Southpoint handles about three million tonnes of cargo a year, of the total eight million tonnes a year at Northport.

Basheer explained that with Northport offering one of the most extensive spread of shipping services in the region, Southpoint will be easily linked to more than 250 ports worldwide.

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