Port Competition in Malaysia

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Port Competition in Malaysia
A. Mustakim
C.K.M. Faizul
M. Faris Mawardi
M. Hanafi Mazlan
Syafiq Affandi
M.Zulkarnain
M.Zulhusnie
Universiti Teknologi Malaysia

ABSTRACT
The journal was written mainly to explain the port competition in Malaysia. There are at least 13 ports in Malaysia with their own capabilities and facilities. Most of the data in this journal were obtained through electronic resources. In this journal, the port were compared by 3 major factors which are port facilities, port service and port information. This includes the particulars of the ports, capacities and size of the port. Based on these criteria, port Klang was chosen as the most competitive among all. In addition to our research, the trade and shipping industries in Malaysia are still growing. Similarly, so are the ports. Consequently, this situation leads to increasing demand and investment on shipping industries. In conclusion, some of factors discussed to evaluate and make comparison between the ports were included in the final chapter of this journal.

INTRODUCTION
Water transport has historically underpinned international trade and contributed to the economic growth for its country. The water transport is facilitated by the ports which provide a linking between water transport and surface transport. For the ports to exist in between these two different types of transport to provide the services, are derived from the demand that depends on the demand for freight at a destination and demand for the travel by passengers. Therefore, it can be said that ports are the chains of services that deliver the outcome from the goods and movement of the people (passengers). The main function of the ports is to facilitate the large scale movement and delivery of goods. Nowadays, maritime freight transport has grown at a fast rate and many changes happened over decades. Freight volume and container have grown along with the global trade and geographical dispersion of the goods. With the industrial sector which has evolved rapidly, it has rendered the ports environment with more competition between ports and more challenging. Many agents along the supply chain have engaged in the activities and lead to the efficiency in the movement of cargos. In 2009, a total of 8 billion tonnes of cargo was loaded onto ships worldwide with the value around $5 trillion. For large volumes of goods and cargo, the ports must be able to handle them with a systematic system that they created to avoid any difficulty. According to the United Nations Conference on Trade and Development’s (UNCTAD) 2010 report, the worldwide maritime freight volumes has doubled between 1990 and 2009. This showed that the water freight sector is growing significantly. Table 1: development of international seaborne trade

Thus, the ports are very important for the functioning of the world economy as well as for the country economic. As such, there is a need to ensure the appropriate competitive or regulatory constraints to bond ports in Malaysia to behave in a competitive manner, in terms of price levels, services standards and degree of innovation. Ports are infrastructure that can be organized in various ways. The ownership of structure of ports is influenced by the characteristics of each individual port, the customers it serves and its scales. Based on these factors there is no uniform model for structure of the port industry. Below is one of the illustrations of the value chain in maritime/port sector.

BACKGROUND
The growth in the industrial sector in Malaysia since 1990s has leaded the Malaysia one of the most important nation in the global trade. The phenomenal growth in global trade has had a huge impact in the development of the ports and shipping in Malaysia. In Malaysia, this has spurred investment and the development of various infrastructures to support increasing trade with the world’s nations. In just a few decades, there have been many growths of ports and...
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