Northport’s CEO, Dato’ Azman Shah Mohd Yusof (front left) and POIC’s CEO, Datuk Dr. Pang Teck Wai (front right) exchanging the Strategic Collaboration Agreement, witnessed by YB Datuk Seri Panglima Wilfred Madius Tangau (back right) and Mr. V. Vijayaindiaran, Assistant General Manager, Corporate & Development of Port Klang Authority (back left) at the signing ceremony.
PORT KLANG, 18 October 2019 – Northport (Malaysia) Bhd (“Northport”) and POIC Sabah Sdn Bhd (“POIC”) have signed a Strategic Collaboration Agreement (SCA) for the establishment of a sister port relationship with the aim of boosting trade links and increasing the cargo flow through their respective ports.
The signing of the agreement sealed both parties’ commitment to cooperate in port management and facilitate trade between West Malaysia and East Malaysia as well as the neighbouring region with special focus on the BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area) trade route.
The SCA was signed by Northport’s Chief Executive Officer, Dato’ Azman Shah Mohd Yusof and POIC’s Chief Executive Officer, Datuk Dr. Pang Teck Wai in Port Klang today. The signing ceremony was witnessed by the Deputy Chief Minister of Sabah cum Minister of Trade and Industry of Sabah, YB Datuk Seri Panglima Wilfred Madius Tangau.
Under the agreement, both ports are expected to share their respective range of experience, capabilities, resources, knowledge and know-how in the fields of port management, container handling, conventional cargo services, marine services, on dock logistics, the Halal trade, liquid bulk, dry bulk and distribution parks.
“With Northport’s 118 year’s history, we believe that our experience in managing one of Malaysia’s major multipurpose gateway port would benefit POIC especially for the operation of their brand new container terminal.
Northport, on the other hand, would benefit from POIC’s experience in developing industrial parks and handling bulk cargo operations to support the trade requirements of their investors.” said Dato’ Azman.
Northport is a subsidiary of MMC Ports, Malaysia’s largest port operator. MMC Ports is a wholly-owned subsidiary of MMC Corporation Berhad, a conglomerate involved in ports and logistics, energy and utilities, engineering, and industrial development.
MMC also owns Pelabuhan Tanjung Pelepas Sdn Bhd, Johor Port Berhad, Penang Port Sdn Bhd, Tanjung Bruas Port Sdn Bhd and Kontena Nasional Berhad, a logistics provider.
Internationally, MMC has presence in Saudi Arabia via Red Sea Gateway Terminal Company Limited, a container port terminal within the Jeddah Islamic Port.
POIC is a wholly owned company of the State Government of Sabah which is developing an industrial park in Lahad Datu, Sabah and has recently completed the building of a container terminal within the same industrial park.
POIC is envisaged to be not only a catalyst for the development of Sabah, but also the resource-rich BIMPEAGA which supplies the global market with palm oil, cocoa, rubber, timber and minerals, including coal and petroleum.
“Today’s ceremony marks a huge milestone for both Northport and POIC as both ports are poised to play bigger roles in facilitating trade between West Malaysia and East Malaysia. We also believe that our strategic locations along the busy Straits of Malacca and BIMP-EAGA trade route would provide us with greater competitive advantage in this very challenging port and shipping industry,” added Dato’ Azman.
The signing of the strategic collaboration with POIC will further strengthen Northport’s relationship with the East Malaysia shipping fraternity. In September 2017, Northport signed an MoU to form The East Malaysia Network or TEAM Network with East Malaysia based shipping lines, Shin Yang Shipping Sdn Bhd and Harbour-Link Group Berhad.
The MoU was aimed at achieving economies of scale through sharing of resources such as vessels, terminals arrangements and networks. Both POIC and Northport are envisaged to play the role of hub ports for the TEAM Network.