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10   MMC PORTS NEWSLETTER



          FEATURE STORY






           Northport:

           Gaining the Competitive Edge


          Located in  Port  Klang,  Northport  (Malaysia)  Bhd (Northport),  is one of  the  leading multi-purpose

          gateway ports in Malaysia’s logistics ecosystem, and a valued part of MMC Port Holdings Berhad
          (MMC Ports). With 124 years of sustainable growth under its belt, Northport offers the competitive edge
          for all of its port users through a robust blend of ultramodern infrastructure, logistical advantages, and
          strategic market access, which is achieved via its proximity to the Klang Valley and direct access to
          global shipping routes.


         The First Port in Port Klang                         A New Era Begins

         The  history of Northport began 124 years ago at Southpoint   Things continued moving forward in the management of the port.
         during the British colonial period, when it was known as Port   Vigorous and comprehensive changes came about when one
         Swettenham - a small port administered by Malayan Railways   of    Malaysia's  oldest conglomerate,  MMC  Corporation  Berhad
         Limited. Since then, Port Swettenham has grown exponentially,   (MMC) coming in the picture. MMC is Malaysia’s leading utility
         serving as the national gateway for its users and eventually being   and infrastructure group with diversified businesses under four
         known as a flexible port that offers a wide range of port facilities,   core business divisions, namely Ports and Logistics, Energy and
         services, and cargo handling capabilities.           Utilities, Engineering, and Industrial Development. In January
                                                              2016, MMC, through its wholly-owned subsidiary MMC Ports,
         The Privatisation of Port Klang                      took over the ownership of Northport.

         Over the years, the increased demand for port facilities at Port
         Klang, consistent with the growth of the Malaysian economy
         and  the  advent  of  containerisation,  led  to  the  Port's  gradual
         privatisation aspirations. Malaysia’s first port privatisation
         exercise began in Port Klang in March 1986 when Klang Container
         Terminal (KCT) was formed to operate Port Klang Authority’s
         (PKA) container terminal. It is regarded as the flagship of the
         Government’s pioneer privatisation programme, with KCT being
         established as part of the first phase of Port Klang’s privatisation.
         The privatisation process started in 1985 when PKA incorporated
         KCT as its wholly owned subsidiary and awarded it a 21-year
         renewable lease and exclusive license to operate the container
         terminal,  including storage  terminals and wharf,  container
         handling and marine services. The privatisation programme had
         also proved to be a success with significant improvements in
         port productivity. The success of the Government’s privatisation
         programme had indeed, placed Malaysia as Asia's leader in port
         privatisation.

         The success of KCT set the stage for the privatisation of other
         Federal ports and utilities in the  country.  In December 1992,
         Klang Port Management (KPM) took over the rest of the port
         services from PKA under the second phase of the privatisation
         programme. The privatisation of the two ports in Port Klang had
         sharply improved the port’s productivity and gain the reputation
         of Malaysia’s main gateway to the world. In September 2000, a
         restructuring exercise was undertaken to consolidate the port
         and logistics business by the majority shareholder of KCT and
         KPM, Permodalan Nasional Berhad, a Malaysian investment
         management company, resulting in the birth of NCB Holdings
         Bhd.

         In July 2001, KCT changed its name to Northport (Malaysia) Bhd
         to reflect the new corporate identity and in November 2001, KCT
         and KPM were successfully merged under one single brand
         name, Northport.
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