By David Tan, The Star

June 28, 2010

GEORGE TOWN: The North Butterworth Container Terminal (NBCT) expects to handle over one million TEUs (twenty-foot equivalent units) of container cargo this year – a target set out by Penang Port Sdn Bhd (PPSB) since 2008 – compared with 958,476 TEUs in 2009.

Penang Port general manager Obaid Mansor told StarBiz that NBCT was confident of achieving the record throughput because it was close to handling 542,500 TEUs of container cargo for the first six months ending June this year.

“This second quarter, we expect to achieve a 5.5% increase over the 264,041 TEUs achieved in the first quarter,” he said.

Penang Port expected about 8% growth in the third quarter from 263,421 TEUs in the same period last year.

“Based on the feedback we received from rubber exporters, rubber will drive the growth of container cargo in the second half of the year.

“Steel products, semi-finished and finished electrical items, and special glasses for solar panels make up the other essential cargo that would also contribute to the growth,” Obaid said.

NBCT handled 88,000 TEUs per month in the second quarter, compared with 66,400 TEUs the corresponding period last year. Monthly volume grew to 92,800 TEUs, from 75,000 TEUs.

“Next month, we will deploy all the six gantry cranes, each costing RM25mil, to support the anticipated increase in cargo moving in and out of NBCT,” Obaid said.

According to him, a new berth, which will increase the existing facility to 1,500m, will be ready next month. The berth will be equipped with a new power supply system that would enhance electricity distribution for NBCT.

A new container storage yard developed on a 25ha site in NBCT should be ready in the first quarter of 2010, he said.

Container cargo accounted for 65% of Penang Port revenue, which is expected to increase to RM300mil this year from RM270mil in 2009.

Meanwhile, the Penang Importers and Exporters Association (PIEA) expects the volume of imports and exports by its members to increase by about 7% this year from about 75,000 TEUs in 2009.

PIEA president Teoh Si Kiang said its members shipped about 50,000 TEUs of consumer goods in the second quarter.

“The figure is expected to increase to 60,000 in the third quarter on growth in regional and domestic demand, in line with a stronger GDP forecast.

PIEA, which has 245 member exporters and importers of mainly electrical and electronic products, textile items, and plastic consumer goods, expects cargo volume to increase by 7% this year.

Teoh said the association would work with state governments to promote trade shows and exhibitions in China and in the Indonesia-Malaysia-Thailand Growth Triangle.

“Next year, we will be organising the largest trade show in Penang to showcase products imported by us to our Asian customers,” he said.

PIEA had just elected businessman Ong Chin Siong its new vice-president, Teoh added.