Johor Port aims to be among top three LME ports globally
Johor Port, under its five-year development and modernisation plan, aims to emerge as one of the top three London Metal Exchange ports globally, Bernama reports.
Chief Executive Officer Shahrull Allam Shah Abdul Halim said for this to happen, Johor Port needs to enhance its LME cargo handling capacity, to one million metric tonnes annually.
At present he said, Johor Port handled between 430,000 metric tonnes of LME cargo, that is non-ferrous metal annually, placing it seventh in terms of global ranking.
"Johor Port aims to further enhance and increase our handling of LME cargo. Costs will be our main advantage," he told Bernama at his office in Pasir Gudang, here.
He said currently, LME ports which had the capacity to handle cargo of one million metric tonnes were Rotterdam (Holland), and Houston in the United States.
Johor Port, a multi-purpose port in Pasir Gudang, is also among the 35 ports globally certified to handle the LME cargo.
The LME, formed in 1877 and headquartered in London, is the world's premier non-ferrous metals market.
Under the development and modernisation plan from 2012-2016, Johor Port has allocated between RM400- to RM500 million for capital expenditure (CAPEX).
Shahrull Allam Shah said there was a high demand among Johor Port's clients to increase the LME cargo handling capacity.
"The demand is there (for increased capacity). The customers are asking for it. The question now is, how fast can we create the space for them," he added.
He said Johor Port estimates a period of between eight to 12 months to implement efforts to enhance its LME cargo handling capacity.
"One of the initiatives towards this end is a space optimisation plan within the port, such as consolidating the existing storage facility and expanding the existing operational area to another suitable location.
"Johor Port will also build multi-storey storage facilities which can be used by various logistics operators to handle LME cargo on the ground floor and non-LME cargo on the higher levels," Shahrull Allam Shah said.
Johor Port's development and modernisation plan also calls for an enhancement of the handling of bulk and liquid cargo, to ensure it continues to be the main gateway to Southern Johor and Pasir Gudang.