Northport and POIC have signed a strategic collaboration agreement to establish a sister port relationship to boost trade links and cargo flow between the two ports.
PORT KLANG: Northport (Malaysia) Bhd (Northport) and POIC Sabah Sdn Bhd (POIC) have signed a strategic collaboration agreement to establish a sister port relationship to boost trade links and cargo flow between the two ports.
The agreement was signed by Northport chief executive officer (CEO) Datuk Azman Shah Mohd Yusof and POIC CEO Datuk Dr Pang Teck Wai, witnessed by Sabah Deputy Chief Minister Datuk Seri Wilfred Madius Tangau here.
Azman Shah said under the agreement, the port operators will share their experience, capabilities, resources and knowledge in port management, container handling, conventional cargo services, marine services, halal trade and on-dock logistics.
“With Northport’s 118-year history, we believe that POIC will benefit from our experience in managing one of Malaysia’s major multipurpose gateway port, especially in the operations of its brand new container terminal.
“At the same time, Northport will benefit from POIC’s experience in developing industrial parks and bulk cargo handling,” he told a press conference after the signing ceremony.
Meanwhile, Pang said the collaboration is a huge milestone for Northport and POIC as both ports are poised to play bigger roles in facilitating trade between West and East Malaysia.
“We also believe that the ports’ strategic location – Northport at the busy Straits of Malacca and POIC Port at the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) trade route – will provide us with greater competitive advantages in this very challenging port and shipping industry,” he said.
Pang added that the collaboration will allow the ports to tap into the growth of the BIMP-EAGA trade route and the Lombok-Mikasa Strait. He said the BIMP-EAGA, which has a population of about 60 million people, will be the new trade frontier.
“This agreement will open up areas such as Kalimantan and Sulawesi in Indonesia, Mindanao in the Philippines and Papua New Guinea — areas which have big agricultural and natural resources. When the cargo link is established, the investors and other industries will come in.
“Since the Lombok-Mikasa Strait has deeper waters, it will became the preferable marine route as the Straits of Malacca is too congested and shallow to accommodate bigger cargo ships and tankers,” he said.
Pang added that many huge petroleum tankers from the Middle East and cargo ships from Australia prefer to use the Lombok-Mikasa Strait as part of their route to China. — Bernama