FREE trade zones – nearly every country in the world has several of these areas where tariffs and quotas are eliminated, bureaucratic requirements lowered and incentives offered to attract companies to do business there. PRESENNA NAMBIAR finds out how the Port Klang Free Zone seeks to set itself apart from competitors.

THE Port Klang Free Zone (PKFZ) is set to emulate the achievements of Dubai’s Jebel Ali Free Zone, reputedly the world’s most successful free zone.

Jafza International, which has been awarded a management contract to operate and market PKFZ, plans to make it South-East Asia’s trading and logistics hub and is taking on multiple roles to make this happen.

Instead of being only the authority in the free zone, Jafza sees itself as its facility planner and manager, business facilitator, operations manager, security manager, supervisor and enforcer.

“At Jafza-run free zones we see our role very very differently. All of the elements are brought together, and this way we control the activity, quality of business and the impact on local and regional economies,” said PKFZ managing director Noel Gulliver, an Australian logistics executive with 14 years experience in Asia.

“That is really the way Jafza brings serious value to what it has done in the past,” Gulliver said.

Jafza will be managing PKFZ for 15 years for the Port Klang Authority which wholly owns it. The job is expected to be later handed over to locals.

PKFZ is a 400-hectare area adjacent to Westports and located near Northport. It is the only free zone in Malaysia that combines commercial and manufacturing facilities under one roof.

PKFZ had a soft launch early this month to mark the completion of phase one of its development with basic amenities like water and electricity in place.

Its first major tenant is Norway’s Aker Kvaerner, which makes subsea equipment used to pump oil and gas.

The investor chose PKFZ to be the home of its manufacturing centre after 18 years of operating in Malaysia.

“Malaysia’s well-developed infrastructure and the support extended by the authorities for such high-technology developments in the country were other important factors,” Aker Kvaerner vice-president Raymond Carlsen said recently.

PKFZ is targetting logistics companies to take up 50 per cent of available facilities, manufacturing 25 per cent, value-added activities 15 per cent and commercial activities 10 per cent.

The free zone is to officially open in the first quarter of next year. PKFZ is a strategic national project designed to generate cargo throughput for Port Klang.

Selangor Freight Forwarders Association president Tan Ah Beng said that PKFZ is a good beginning to boost activity at Port Klang.

He said the frequency of vessels in Port Klang makes it the perfect choice for such an integrated zone, as importance is given to how many countries investors can ship out to.

“A general view on PKFZ is that it has to be successful, but how soon depends on the players,” Tan said.

The success of PKFZ as a global logistics centre will be dependent on both Westports and Northport terminals, as its logistics connects mainly to sea transport and others such as rail and air.

For Northport and Westports, meanwhile, the PKFZ development will also help spur the growth of their own distribution parks or Distriparks.

Westports executive chairman Tan Sri G. Gnanalingam told Business Times that he hopes the PKFZ will emulate the Jebel Ali Free Zone which has around 3,500 Distriparks.

A spokesperson from Northport also said it plans to capitalise on PKFZ by creating a seamless environment within Port Klang for the establishment of a cargo distribution hub by global logistics operators.

“We plan to make the PKFZ an extension of our Northport Distripark in the near future,” the spokesperson said.

He said Northport, PKFZ and Westports are important entities in Port Klang which have a role in ensuring the success of the port.

“Each entity to a certain extent will be inter-dependent,” the spokesperson said, adding that in creating a seamless environment within the free zone, the Government’s support in taking away bureaucratic procedures is vital.

“Besides facilitating hassle-free documentation, there is also a need to facilitate easy and free flow of cargo and container movements between PKFZ and the two terminals.

“PKFZ on its own will not be able to do it, not only due to lack of resources, but also the ability to execute the plans independently. The Government, therefore, has a key role to play in trade facilitation,” the spokesperson said.

INVESTMENT CATALYST
* Port Klang Free Zone operated by Jafza International
* A 400-hectare site adjacent to Westports and located near Northport
* Only free zone in Malaysia that combines commercial and manufacturing facilities under one roof
* First major tenant is Norway’s Aker Kvaerner
* Targets logistics, manufacturing companies and aims to attract value-added and commercial activities
* To officially open in first quarter of 2007
* Strategic national project designed to generate cargo throughput for Port Klang

NORWEGIAN oil and gas industry equipment maker Aker Kvaerner ASA’s new integrated production facility at Port Klang Free Zone(PKFZ), next to Westports in Pulau Indah, is expected to be ready in April 2007.

The US$100 million (RM365 million) facility, whose construction began in February 2006, will be able to make the entire range of products for the sector at a single location to fulfill regional and global demand for Aker Kvaerner’s offerings.

“The integrated subsea hub will enable the entire range of equipment and services for the growing number of deepwater projects in the region to be provided from one single point.

“The hub is not only important for us in South-East Asia, but also our activities around the world,” Aker Kvaerner executive vice-president Raymond Carlsen told reporters in Kuala Lumpur yesterday.

Aker Kvaerner whose offerings include subsea equipment and systems, drilling risers, besides manifolds and structures, will occupy 27.6ha of open land at the 400ha PKFZ.

Its Malaysian unit is currently engaged in the Murphy Oil Kikeh Development project off the coast of Sabah, besides supplying subsea structures to India’s Reliance Industries Ltd.

In terms of production capacity, Carlsen said the hub, upon completion, will be able to make up to 100 units of subsea Christmas trees per year, but the manufacturer will initially produce some 50 units per year due to insufficient trained manpower.

Subsea Christmas trees are valves which control the flow of oil and gas derived from offshore operations.

As a result of Aker Kvaerner’s expansion in Malaysia, the group’s workforce of some 500 employees here is expected to double by 2008.

AKER Kvaerner, syarikat kejuruteraan minyak dan gas Norway, akan menggunakan kemudahan operasi bersepadunya di Zon Bebas Pelabuhan Klang (PKFZ) sebagai pusat pertumbuhan perniagaan di Asia Pasifik.

Pusat bersepadu pertama seumpamanya di dunia itu akan mengeluarkan sistem dan peralatan cari gali minyak laut dalam, termasuk kerangka penggerudian minyak laut dalam, sistem kawalan pengeluaran laut dalam, struktur penggerudian dan sistem pengujian di tapak pengeluaran.

PKFZ turut mengendalikan perkhidmatan pengurusan bagi projek Kejuruteraan, Pemerolehan dan Pembinaan (EPC) serta khidmat sokongan projek laut dalam.

Naib Presiden Eksekutif Aker Kvaener (Laut Dalam), Raymond Carlsen, berkata pusat di kawasan seluas 150,000 meter persegi dengan pelaburan AS$100 juta itu akan mula beroperasi pertengahan bulan ini.

Katanya, kegiatan cari gali minyak laut dalam sedang giat berkembang di rantau ini berikutan permintaan tenaga yang tinggi.

“Sebagai penyedia peralatan dan kejuruteraan dalam bidang itu, ia menyediakan pasaran yang besar kepada syarikat,” katanya pada sidang media di Kuala Lumpur, semalam.

Aker Kvaener adalah pelabur pertama beroperasi di PKFZ bagi mendirikan pusat pembuatan untuk menyokong aktiviti penerokaan minyak dan gasnya di Asia Pasifik.

Carlsen berkata, syarikat ketika ini terbabit menyediakan 16 kerangka penggerudian laut dalam dengan kontrak bernilai kira-kira AS$100 juta bagi kegunaan di lapangan minyak Kikeh yang terletak di luar pantai Sabah yang dijadual memulakan pengeluaran pada 2007.

Lapan daripada kerangka itu akan dihasilkan di Pelabuhan Klang, manakala selebihnya didatangkan dari Norway.

“Setakat ini tiga kerangka ditempatkan di telaga minyak berkenaan,” katanya.

Lapangan minyak Kikeh ditemui pada Julai 2002 oleh Murphy Oil Corporation yang berpangkalan di Amerika Syarikat dan pada masa itu ia adalah penemuan minyak terbesar di Asia Tenggara dalam tempoh 10 tahun.

Aker Kvaener ketika ini juga terbabit dalam penyediaan 11 kerangka laut dalam kepada Reliance Industries Limited dari India dengan kontrak bernilai AS$430 juta.

Carlsen berkata, syarikat turut mengemukakan tender bagi projek lapangan minyak Gemusut di luar pantai Sabah, membabitkan pembangunan bersama kerja cari gali laut dengan kerjasama Petronas-Shell.

Syarikat itu yang mengemukakan bidaan bulan lalu, menjangka mengetahui keputusannya menjelang suku pertama tahun depan.

“Kontrak ini agak sama dengan apa yang kami lakukan di projek Kikeh,” katanya tanpa mendedahkan nilai kontrak berkenaan.

Lapangan minyak Gemusut ditemui Shell dengan rakan kongsinya, Petronas Carigali dan ConocoPhilips di luar pantai Sabah pada 2004.

Difahamkan lapangan minyak Gemusut mempunyai kira-kira 19 telaga minyak.

THE Port Klang Free Zone (PKFZ), a 400-ha site on Pulau Indah, has opened for business.

PKFZ general manager Noel Gulliver said today’s (November 1) opening is a soft one and the official launch is only expected to take place in the first quarter of next year.

“Investors who would like to occupy the light industry units can still come in in the next couple of days as time is needed to connect electricity and water to the units, while investors looking to lease areas in open land can straight away start work in the free zone to build their facilities once they get their approvals,” Gulliver said.

PKFZ has so far secured one major tenant, Aker Kvaerner, a Norwegian oil and gas engineering group, which has already started construction on its facilities in the free zone.

Aker Kvaerner has taken up 27.6ha or more than 10 per cent of the open land available and will be spending RM400 million to build a manufacturing centre, which will play a pivotal role in supporting its oil and gas exploration in Asia-Pacific.

“We are in the process of finalising discussions with five other serious investors to take up another 28ha,” Gulliver said.

He said another 10 investors have made enquiries to take up a total of 14 units of light industrial units or warehouses, while four companies were interested to take up office space at the office complex.

“We had many more successful discussions and are in the midst of finalising agreements with potential tenants.

“Their businesses vary from multinational companies, small-medium industries to companies dealing in distribution, value-adding and logistics services,” Gulliver said.

He expects significant contribution from the operations in the free zone in two to three years.

Port Klang Authority, the sole owner of the free zone, has allocated a sum of RM2.2 billion for the development of the free zone.

PKFZ is the first free zone in Asia-Pacific to be managed by JAFZA International, the consulting and management division of Jebel Ali Free Zone Authority in Dubai.

JAFZA International will manage the free zone for 15 years in which time PKA hopes to develop the right local expertise to take over the management of the free zone.

Paling menarik, PKFZ seluas 400 hektar itu sudah menerima pelabur pertama, Aker Kvaerner, sebuah syarikat kejuruteraan minyak dan gas Norway yang mengambil kawasan perindustrian yang dibangunkan seluas 27.6 hektar.

Aker Kvaerner akan melabur RM400 juta membina sebuah pusat pengeluaran yang memainkan peranan penting menyokong kerja cari gali minyak dan gas mereka di Asia Pasifik.

Pengurus Besar PKFZ, Noel Gulliver, berkata pihaknya kini sedang dalam proses memuktamadkan perbincangan dengan lima lagi pelabur untuk menyewa kira-kira 28 hektar kawasan di situ.

“Sepuluh lagi pelabur sudah menyatakan minat untuk menyewa 14 unit bangunan industri ringan manakala empat syarikat lagi berminat untuk menyewa kompleks pejabat,” katanya dalam satu kenyataan yang dikeluarkan di Kuala Lumpur semalam.

PKFZ yang terletak di sebelah Westports di Pulau Indah diwartakan sebagai zon bebas yang membolehkan aktiviti komersial dan pembuatan dapat berjalan serentak.

Ini bermakna kilang dan firma logistik dapat ditempatkan dalam zon yang sama untuk memudahkan penyelarasan dan melancarkan pengurusan rangkaian bekalan, menjadikan PKFZ sebagai projek pembangunan pertama seumpamanya di Malaysia iaitu sebuah zon perindustrian dan komersial bebas bersepadu.

“PKFZ akan menjadi penggerak pertumbuhan Pelabuhan Klang, yang juga Pusat Muatan Negara sementara ia akan berkembang menjadi pusat perdagangan import-eksport dengan menyediakan kemudahan setempat bagi memproses dan menambah nilai barangan dan perkhidmatan, sebelum dieskport,” kata Gulliver.

AK menyewa 27.6 hektar tanah di PKFZ dan akan melabur RM400 juta bagi mendirikan pusat pembuatan untuk menyokong aktiviti penerokaan minyak dan gasnya di Asia Pasifik.

Pengurus Besar, Port Klang Free Zone Sdn Bhd (PKFZSB), Noel Gulliver, berkata selain AK, PKFZSB juga sedang memuktamadkan perbincangan dengan lima lagi pelabur bagi menyewa 28 hektar tapak industri di PKFZ.

“Di samping itu, 10 lagi pelabur sudah menyatakan minat untuk menyewa 14 unit bangunan industri ringan manakala empat syarikat pula berminat menyewa kompleks pejabat,” katanya pada sidang akhbar selepas lawatan pihak media ke PKFZ semalam.

PKFZ yang berkeluasan 400 hektar menyediakan kemudahan empat kompleks lapan tingkat dengan ruang pejabat, pejabat PKFZSB, kompleks kastam, unit industri ringan dan tapak industri tersedia.

PKFZ yang terletak bersebelahan Westports di Pulau Indah itu sudah diwartakan sebagai zon bebas yang membenarkan aktiviti komersial dan pengilangan dilaksanakan serentak.

Ini membolehkan kilang dan firma logistik ditempatkan dalam zon yang sama bagi memudahkan penyelarasan dan pengurusan rangkaian bekalan.

Antara insentif yang disediakan di zon bebas itu termasuk pengecualian cukai, insentif eksport, insentif penyelidikan dan pembangunan (R&D), 100 peratus ekuiti asing dan 100 peratus penghantaran pulang modal dan keuntungan.

PKFZ diuruskan oleh JAFZA International bagi tempoh 15 tahun sebelum ia diambil alih tenaga tempatan.

JAFZA International sebelum ini membantu kerajaan Maghribi dan Djibouti menubuhkan inisiatif yang sama serta memiliki pengalaman lebih 20 tahun mengendali dan menguruskan zon bebas serta pelabuhan.

Gulliver berkata, PKFZ akan menjadi penggerak pertumbuhan Pelabuhan Klang sebagai entreport yang mampu menyediakan kemudahan sehenti bagi memproses dan menambah nilai barangan serta perkhidmatan sebelum ia dieksport.

“Impak PKFZ kepada Pelabuhan Klang dijangka dilihat dalam tempoh antara dua hingga tahun, terutama dalam peningkatan bilangan kontena yang dikendalikan.

“PKFZ juga akan menjadi pusat bagi syarikat yang beroperasi di Zon Bebas Jebel Ali di Dubai untuk memperluaskan perniagaan mereka ke rantau Asia Pasifik,” katanya.

WESTPORTS Malaysia Bhd (Westports) berjaya menarik dua lagi pengendali syarikat perkapalan utama (MLO) untuk mengadakan persinggahan di pelabuhannya mulai awal tahun depan.

Pengarah Eksekutifnya, Ruben Emir Gnanalingam, berkata pertambahan itu menjadikan jumlah MLO yang dikendalikan pada masa ini meningkat kepada 25.

“Setiap tahun kita mempunyai sasaran tertentu untuk menarik lebih banyak MLO singgah di Westports. Tahun ini saja, tujuh MLO baru iaitu ANL, KLine, Delmas, NYK, Hapag Lloyd, OOCL dan Hyundai mula singgah di Westports.

“Ini dijangka dapat membantu menyumbang kepada peningkatan dalam pengendalian kontena,” katanya ketika melawat Balai Berita, baru-baru ini.

Westports mencatatkan peningkatan 26 peratus pengendalian kontena bagi tempoh sembilan bulan pertama 2006 kepada 2.70 juta TEU berbanding 2.14 juta TEU dalam tempoh sama 2005.

Kenaikan itu terutama disumbangkan pertambahan persinggahan pengendali MLO di Westports serta peningkatan perdagangan antara Eropah dan Asia.

Pelabuhan itu mengendalikan 2.91 juta TEU, sepanjang tahun lalu. Pertumbuhan pengendalian kontena dalam tempoh kajian disumbangkan peningkatan perdagangan berikutan ekonomi dunia bertambah baik, terutama perdagangan intra Asia melalui Westports.

Westports dikendalikan Kelang Multi Terminal Sdn Bhd dan disenaraikan antara lima pelabuhan terbaik dunia daripada segi produktiviti.

Sementara itu, perdagangan tempatan Westports dijangka mencecah satu juta TEU tahun ini berdasarkan kepada pertumbuhan 14 peratus dalam tempoh sembilan bulan pertama.

Menyentuh mengenai pelaksanaan Zon Bebas Pelabuhan Klang (PKFZ), Ruben berkata, beberapa syarikat dari Norway, Sweeden dan China sudah menyatakan hasrat untuk membina infrastruktur berikutan kemudahan dan potensi yang ditawarkan zon berkenaan.

Beliau berkata, Westports bersedia memainkan peranannya sebagai logistik lebih berkesan terutama dalam mempromosikan hab halal di PKFZ sebagai pusat bagi pengeluaran dan pengeksportan produk halal di rantau ini.

“Syarikat ini akan mengimport banyak produk dan ia memberi kelebihan dari segi logistik kepada kita untuk lebih banyak mengeksport produk ini ke seluruh dunia,” katanya.

PKFZ recently underwent successful power supply tests and is now busy putting the final touches to landscaping and road works.

In a statement issued on Friday, PKFZ general manager Noel Gulliver said the free zone has received much interest from potential investors.

“Since our first tenant – Aker Kvaerner, a Norwegian oil and gas engineering group, signed up in June 2006, we have had many more successful discussions and are in the midst of finalising agreements with potential tenants,” he said.

Aker Kvaerner is taking up 69 acres of open land, which is some 10 per cent of the prepared industrial land available at PKFZ.

“Apart from oil and gas companies, potential tenants are varied in their respective industries with multi-national companies, small and medium industries, distribution, value-adding and logistic services registering their interest,” said Gulliver.

The concept of the gazetted free zone is to allow both commercial and manufacturing activities to exist side by side – to promote entreport trade and manufacturing activities by international companies involved in producing goods primarily for export.

This means that factories and logistics firms can be located in the same zone to promote easier co-ordination and smoother supply chain management, making PKFZ the first development of its kind in Malaysia – an integrated free commercial and industrial zone.

Modelled after Dubai’s highly-successful Jebel Ali Free Zone, PKFZ aims to be the “Jebel Ali” of South-East Asia with competitive incentives localised according to Malaysian regulations.

Examples of incentives include tax exemptions, export incentives, research and development incentives and 100 per cent repatriation of capital and profits.

Apart from infrastructure, PKFZ will be a complete one-stop centre and a self contained community that will be equipped with trade offices, forwarding agents and other Government agencies to provide supporting services to tenants.

ZON Bebas Pelabuhan Klang (PKFZ), zon perindustrian dan komersial bersepadu pertama di negara ini, akan dibuka bulan depan.

Pengurus Besarnya, Noel Gulliver berkata, pihaknya sudah menjalankan ujian bekalan elektrik dan sedang membuat sentuhan akhir terhadap kerja berkaitan landskap dan jalan.

Beliau berkata, bekalan kuasa yang menjadi pertimbangan penting kepada pelabur lebih daripada mencukupi di PKFZ.

“Kami menyediakan bekalan tenaga 60 KVA, iaitu dua kali ganda daripada yang ada di Shah Alam,” katanya selepas menyaksikan ujian simbolik ligts up di Kompleks Kastam PKFZ, Pelabuhan Klang, semalam.

Konsep zon bebas yang diwartakan itu bertujuan membolehkan aktiviti komersial dan pembuatan dijalankan serentak, bagi mempromosi perdagangan import-eksport (entreport) dan aktiviti pekilangan oleh syarikat antarabangsa yang mengeluarkan barangan khusus untuk dieksport.

Kilang dan firma logistik dapat ditempatkan dalam zon sama untuk memudahkan penyelarasan dan melancarkan pengurusan rangkaian bekalan, menjadikan PKFZ, sebuah zon perindustrian dan komersial bersepadu, projek pembangunan pertama seumpamanya di Malaysia.

Gulliver berkata, antara kemudahan di PKFZ termasuk empat kompleks lapan tingkat dengan ruang pejabat lengkap bersama tempat letak kereta bertingkat dan ruang jualan makanan.

Perkhidmatan lain seperti bank, pejabat pos, firma guaman, syarikat logistik dan penyedia perkhidmatan lain dijangka beroperasi tidak lama lagi.

Pejabat PKFZ akan memastikan semua operasi berjalan lancar dalam kawasan zon bebas yang turut menempatkan agensi setempat sebagai perantara utama antara agensi kerajaan berkaitan dengan pihak pelabur, katanya.

Beliau berkata, kompleks kastam pula menempatkan perkhidmatan kastam serta jabatan kerajaan lain seperti perkhidmatan kesihatan dan veterinari bagi memudah penyelarasan produk.

Sementara itu, unit industri ringan mengandungi 512 unit teres pra pembinaan dan unit berkembar disedia untuk disewakan.

“Setiap unit berukuran 5,487 kaki persegi bersamaan 463 kaki persegi ruang pejabat pada kadar sewa RM18 sekaki persegi setahun.

“PKFZ turut menyediakan tapak industri yang sudah tersedia untuk disewakan kepada pelabur untuk membina bangunan mereka sendiri dengan kadar sewa RM1.80 sekaki persegi setahun, termasuk kemudahan lain seperti bekalan elektrik, pembetungan, bekalan air tekanan tinggi, sambungan jalur lebar dan talian telefon serta talian data,” katanya.

Matlamat PKFZ yang dibina mengikut model Zon Bebas Jebel Ali di Dubai bertujuan menjadikan PKFZ ‘Jebel Ali rantau Asia Tenggara’ dengan menawarkan insentif daya saing mengikut peraturan Malaysia.

Gulliver berkata, sejak penyewa pertama, Aker Kvaener, kumpulan jurutera minyak dan gas Norway memeterai perjanjian sewaan Jun lalu, PKFZ mengadakan banyak perbincangan positif dan sedang dalam proses memuktamadkan beberapa perjanjian dengan bakal penyewa.

Seen as the country’s growth catalyst, PKFZ offers industries strategic location, professional and efficient management as well as attractive incentives.

STRATEGIC LOCATION
Located at Port Klang, the designated National Load Centre, PKFZ offers industries excellent access to international, regional and local markets via air, sea, rail and road.

PROFESSIONAL AND EFFICIENT MANAGEMENT
Owned by the Port Klang Authority (PKA), PKFZ is modelled after thesuccessful Jebel Ali Free Zone in Dubai. It is managed by JAFZA International, the consulting and management division of Jebel Ali Free Zone Authority (JAFZA).

With over 20 years of experience, JAFZA International is currently helping governments to establish free zones in Morocco and Djibouti, with Malaysia being the first JAFZA-managed project in the Asia-Pacific region.

ATTRACTIVE INCENTIVES
PKFZ offers industries a one-stop centre where industries can easily manufacture, value-add, export and import for re-export with benefits such as:

a) the availability of light industrial units that can act as a warehouse or light manufacturing units, business complexes and prepared land for tenants to build manufacturing units;

b) a streamlined environment with the One Stop Agency (OSA) to take care of registration and licensing of the company and for all other associated services such as work permits etc; and

c) attractive incentives offered by MIDA such as (subject to conditions):
* pioneer status (tax exemptions)
* export incentives
* R&D incentives
* investment tax allowance
* 100% foreign equity
* 100% repatriation of capital & profits
* no duty on imported goods, materials and equipment into the free zone

FACILITIES
PKFZ offers industries a one-stop centre where industries can easily manufacture, value-add, export and import for re-export. Investors can either choose to build their own facility or to lease pre-built facilities that are available at affordable pricing.

LAND RATES (Open Area) – RM1.80 PER SQ FT PER ANNUM
Prepared land where tenants can design and build their own. The targeted tenants are manufacturers (heavy or medium industries) while the plots available are in various sizes for long term lease.

LIGHT INDUSTRIAL & WAREHOUSE UNITS – PRE BUILT (RM18 PER SQ FT PER ANNUM)
512 pre-built units to be used as factories or warehouses at 5,487 sq ft each with office space for short or long term leases.

Business Complex – Pre Built (RM22.80 per sq ft per annum)

Pre-built LOBs with four blocks of eight-storeys each with full amenities with flexible lease periods.

Apart from excellent infrastructure, PKFZ will be a complete one-stop centre that will be equipped with a customs centre, trade offices, forwarding agents and other related Government agencies.

It will also be an all-contained community with banks, post office, food court, fire station and other commercial facilities.

With established links to both domestic and international markets, PKFZ is certainly an investment opportunity not to be missed.