Regional hub: Tan says PKFZ is the redistribution hub for LME, cotton, polymers and other products.
PORT KLANG: The Port Klang Free Zone (PKFZ) is taking large strides and has made great progress in 2017.
Chairman Datuk Tan Chong Seng said PKFZ has successfully positioned itself as a much-sought after regional investment location.
He added that this goal was achieved through a business development approach that meets the long-and-short term to medium-and-long term objectives and needs of its clientele.
“PKFZ is currently a redistribution hub for the London Metal Exchange (LME), cotton, polymers and many other products,’’ Tan told a press conference at the PKFZ administration centre here yesterday.
He said PKFZ was also able to grow rapidly due to the present developments in the global and regional trade liberalisation as well as China’s One Belt, One Road initiatives.
(The One Belt, One Road initiative was a development strategy to boost trade among regional countries with the creation of infrastructure such as ports, railways and expressways.)
According to Tan, PKFZ’s focus on becoming a regional distribution and mega transhipment hub achieved a strong branding in 2009 when it was accredited by the LME and the US-based Inter Continental Exchange for cotton, coffee and cocoa.
“This gave credence to PKFZ as an emerging global distribution hub for commodities traded under two of the world’s foremost trading houses,’’ said Tan.
He said PKFZ’s rapid growth was made possible with the hard work and initiative put in by Transport Minister Datuk Seri Liow Tiong Lai.
“PKFZ is improving rapidly because of the Transport Minister who was instrumental in bringing big names in the shipping line such as Cosco, Maersk, Hapag Lyoyd, Evergreen Marine Corp and others to make continuous port calls at Port Klang,’’ he said.
He added that it was also through Liow’s intervention that the Finance Ministry granted relief from payment of Goods and Services Tax for storage and ancillary services for cotton and the LME.
“The minister’s efforts also saw the creation of the Malaysia-China Port Alliance (CMPA) under the 21st Century Maritime Silk Road Initiative,’’ said Tan, adding that the CMPA will facilitate the strengthening of communication and cooperation between the ports in China and Malaysia.
Elaborating on the improvement shown by PKFZ, Tan said that in the first year of operation in 2007, its annual income was RM3.7mil.
Five years later in 2012, PKFZ recorded revenue of RM39.43mil.
Income, he added, increased steadily for the subsequent five years with double digit growth in 2017.
“We expect revenue to touch RM78.23mil in 2017 which is almost a 100 % increase from 2012,’’ he added.
Also at the press conference was the Transport Ministry’s deputy secretary-general (management) Datuk Chua Kok Ching.
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