PORT KLANG: Southpoint, a port facility in Port Klang operated by Northport (Malaysia) Bhd (Northport), a member of MMC Group, has achieved a remarkable milestone by setting a new record for the highest monthly cargo handling volume.
In May 2024, Southpoint handled a total of 297,337 Metric Tonnes (MT) of cargo, marking a significant growth of 59.1% compared to the same month last year. This performance surpasses the previous record of 289,826 MT set in August 2001.
The Southpoint achievement was attributed to a significant increase in the handling dry bulk cargo, registering 147,545 MT in May 2024, an increase of 105.8% against the same month last year. Meanwhile, the liquid bulk and breakbulk cargo segments also registered positive growth in May 2024, with increases of 42.1% and 7.3%, respectively, compared to May
2023.
In terms of types of cargo, biomass material, specifically palm kernel shell, registered
the highest growth with 84,415 MT, a 193.0% increase compared to May last year. Other
high-volume cargoes handled in May 2024 include palm oil with 76,469 MT and coal with
63,130 MT, marking increases of 47.0% and 47.2%, respectively.
“Southpoint’s remarkable achievement in May 2024 is a testament to our commitment to
enhancing operational efficiency and expanding our service offerings. The significant
increase in cargo handling volumes, particularly in the dry bulk segment, highlights the
effectiveness of our strategic initiatives, including the establishment of the Biomass
Logistics Hub at Southpoint,” said Northport CEO Datuk Azman Shah Mohd Yusof.
Since the takeover of Northport in January 2016 by MMC Corporation Berhad, through its
wholly owned subsidiary MMC Port Holdings Sdn Bhd (MMC Ports), the Company has
embarked on the “Reinventing Northport” initiative. As part of this strategic initiative, the
Company made a major move with the establishment of the Biomass Logistics Hub at
Southpoint in April 2018, a strategic initiative to boost the biomass industry while
championing environmental stewardship in Malaysia. The hub represents a comprehensive strategy to optimise resource utilisation and foster industry collaboration. Starting with just three primary players, namely Tien Chung, ES Ng Holding and Tropical Timber, Southpoint has seen exponential growth of biomass materials, with total handled volumes increasing
from 16,551 MT in 2015 to 464,013 MT in 2023.
Significant contributors to this surge included industry players such as Ovol New Energy Sdn Bhd and Bio Eneco Sdn Bhd, who are exporting biomass materials mainly to Japan and Thailand. The growth in biomass handling reflects Southpoint’s success in tapping into the burgeoning biomass industry, driving both environmental sustainability and economic resilience in the region.
“The Biomass Logistics Hub at Southpoint is our strategic initiative to harness the vast
potential of the biomass industry, ushering in a new era of sustainable practices and
economic resilience. This initiative was also part of our strategy to revitalise Southpoint, a 123-year-old port terminal facility handling various types of bulk cargo. When I first visited Southpoint in 2016, there were 23 abandoned silos, dilapidated buildings and land
overgrown with grass. Southpoint has been transformed into a commodities hub with new warehouses and warehouses built in place of the demolished silos and buildings,” said Azman.
Established over a century ago as Port Swettenham, Southpoint has evolved significantly
since its inception on 15 September 1901. Initially administered by Malayan Railways Ltd
during British rule, Southpoint has served as a national gateway, offering diverse port
facilities and services for various cargo types, including dry bulk, breakbulk and liquid bulk.
In February 2004, Southpoint was designated as a ‘Free Commercial Zone,‘ positioning it
as a cargo consolidation centre for the re-shipment of cargoes from neighbouring and
riverine ports. The extension of Northport’s concession for 30 years until November 2043,
signed between Northport, the Government of Malaysia and the Port Klang Authority
(PKA) on March 6, 2018, has further bolstered Southpoint’s business prospects.
Today, Southpoint boasts eight berths, from Berth 1 to Berth 7A, with varying depths to
accommodate ocean-going vessels and coastal ships. The port also features eight
warehouses and multipurpose open yards with a total space of 53,000 square meters,
supporting its robust cargo handling operations.
Southpoint’s success today is part of its ongoing transformation and revitalisation efforts
aimed at enhancing its capabilities and expanding its regional trade reach.
“As we celebrate this milestone, we remain dedicated to continuous improvement and
innovation. Our ongoing ‘Reinventing Northport’ programme is a testament to our
commitment to transforming Northport into a ‘Safer, Greener, Smarter, Better’ port. We look forward to building on this success and exploring new opportunities to drive further growth and sustainability in our operations,” said Azman
