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If there is one thing we learnt in 2020, it is that Murphy’s Law is very much in existence. Despite our best efforts, the unpredictable became a reality. The coronavirus pandemic caught mankind off guard like no other previous pandemics or natural disasters with governments struggling to contain its spread. Things that could go wrong went wrong and in quite many cases abysmally wrong with devastating impact on human health, the economy and livelihoods across the globe. No nation was spared the anxiety, the pain and the anguish of families losing loved ones, jobs and sources of income and even personal liberty curtailed personified by  desperate measures to stem the pandemic.

Deep into 2021, after more than 18 months of despair and struggles, the world is still grappling with the Covid-19 virus with mixed success. The pandemic is very much still around inflicting losses and damages with new variants that are spreading at a faster rate albeit a better understanding of the virus and its behaviour. With a variety of vaccines available in the market, the fight against the virus has shifted several gears with an all-out effort in many countries to ramp up the vaccination rate which appears to be the best solution out of the predicament we are in.

This year started brightly for the logistics industry with increased volumes especially in container handling. Maritime freight rates are at an all-time high as freight space on container ships are very much in demand with some trade sectors observing a 6 fold increase in freight rates including Asia-Europe and  Transpacific routes. Many ports throughout the world experienced a considerable increase in cargo volume while at the same time were affected by congestion and delays due to inshore supply chain disruptions in the face of lockdowns and deferment of capacity expansion.

In 2020, Port Klang recorded a 2.5% reduction in container volume, handling 13.24 million TEUs despite witnessing double digit drop in Q2 and subsequently recovering in the 2nd half of the year. Overall freight weight tonnage declined by 9%  recording 222 million FWT while ship calls declined 6.5% with 13,294 calls. Overall, the 2020 performance was a relief as the port was expected to fare worse given the state of the economic and health affairs globally.

Continuing the upward trend from late last year, the port recorded a 17% container cargo growth in the 1st half of 2021,handling just over 7 million TEUs. Anticipating the growth to continue in the 2nd half and beyond, plans have been put in place to proceed with port expansion works of Westports which is expected to begin by the end of 2021. The overall expansion will add 4.8km of berth length, increasing handling capacity by 13.5 million TEUs which will be undertaken in 2 phases over a period of 20 years. At Northport, a new warehouse of 350,000 sq. ft will commence operations in August 2021, while works to construct a new container yard of 1700 TEUs ground slots will begin soon and is expected to add 560,000 TEUs handling capacity on completion in 2022.

In keeping up with our pledge to develop Port Klang sustainably as a smart and safe green port, several initiatives are underway to reduce carbon emissions, enhance energy efficiency and improve waste management from port and shipping operations. All warehouses built within Northport, Westports and PKFZ are required to incorporate solar panels on roof tops while future new port facilities will feature green technology applications aimed at reducing carbon emissions and greenhouse gases.

Most importantly, we hope the health measures being put in place will be able to bring the pandemic under control and enable businesses to reopen and lives to regain some sense of normality.

Do enjoy surfing our website and drop us a line to share your thoughts. In the meantime, please stay safe.

Thank you.

Capt. K Subramaniam
General Manager
Port Klang Authority