LUMUT PORT – ECONOMIC CATALYST FOR PERAK
One of the examples of a successful collaboration and close working relationship between the Malaysian Government and the private sector is the creation of Lumut Port.
Smart Public-Private Partnership
Lumut Port was founded as a result of a Public-Private Smart Partnership in 1993. The objective of the partnership was to develop strategic port infrastructure to act as a catalyst to stimulate industrial development in the state of Perak.
The development partners of Lumut Port are Integrax Berhad, representing the private sector, and the Perak State Economic Development Corporation, representing the Perak State Government.
From its humble beginnings, Lumut Port has grown to be a thriving hub providing world-class port logistic services for dry bulk and liquid bulk cargo.
Lumut Port enjoys a strategic location in Perak which is located on the west coast of Peninsular Malaysia, with one of the world’s busiest shipping route, the Straits of Malacca at its doorstep.
Lumut Port consists of Lumut Maritime Terminal (“LMT”) which is an inland port, and Lekir Bulk Terminal (“LBT”) which is located on Pulau Lekir Satu, a reclaimed island. LMT began operations in 1995 and is designed to handle dry bulk cargo such as coal, limestone, and cement; and liquid cargo such as palm oil and petroleum products. LMT acts as the gateway to Lumut Port Industrial Park, a sprawling 1,000 acre industrial estate which is home to several multinational companies, and a hinterland comprising of oil palm plantations and mining operations.
LBT began operations in 2002 and provides coal handling services to Tenaga Nasional Berhad’s power station located on Pulau Lekir Satu, which supplies 15% of Peninsular Malaysia’s energy supply. LBT has the distinct advantage of a being one of a handful of ports in the world with a natural water depth of 20 metres, thus capable of berthing very large ships.
Integrax’s Executive Director, Azman Shah, is very positive about Lumut Port’s future. He said that “Lumut Port’s business approach of being a Value Chain Integration Partner allows it to cater for the needs of its current and future customers. Our ability to move up and down the value chain of various types of raw materials and provide integrated solutions makes us a unique logistics partner”.
Lumut Port collectively handles 10 million tonnes of cargo per year. Azman says that both LMT and LBT have the potential to increase its cargo handling capacity and capabilities and the plans to expand both the terminals are being finalised.
“Internally, we have a target called Vision 20:2020 for Lumut Port which means achieving 20 million tonnes of cargo by the year 2020”, Azman added. “This is a very realistic target as already our coal handling throughput for Tenaga Nasional Berhad’s power station will be doubled in 2017 due to the planned capacity expansion of the station”.
Value Chain Integration Partner
With its value chain integration partnership approach and emphasis on long-term business relationships, Lumut Port is fast attracting the interest of large commodity players as a potential transhipment hub for the Asian region.
Azman said that, “We are in various stages of negotiations with potential customers. The future looks very promising for Lumut Port and we hope to contribute towards the development of the Lumut-Manjung area as the New Economic Capital of Perak.”