Speech by

Chairman of International Cargo Handling Coordination Association (Malaysia National Section)

Updated ..... October 10, 2000

INTERNATIONAL CARGO HANDLING COORDINATION ASSOCIATION (MALAYSIAN NATIONAL SECTION)

Speech by

Chairman of International Cargo Handling Coordination Association (Malaysia National Section),

Encik Abdul Halim Harun (Managing Director Klang Port Management/Klang Container Terminal) at the opening of Panel Discussion on Budget 2001 & the Transport Sector, 15 November 2000 at Grand BlueWave Hotel, Shah Alam.

Ladies and Gentlemen:
Good afternoon to all you.

On behalf of ICHCA Malaysia National Section, I am pleased to welcome you to this first panel discussion on transport issues and matters arising from the Budget 2001, organized by ICHCA Malaysia Section.

Before I proceed further, please allow me, for the benefit of those of you who do not know what ICHCA is all about, to give a brief introduction of the International Cargo Handling Coordination Association, or ICHCA, as it commonly known.

The International Cargo Handling Co-ordination Association (ICHCA) is a membership organisation founded in 1952 dedicated to the promotion of efficiency and economy in the handling and movement of goods, from origin to destination, by all modes, and at all phases of the national and international transportation chain.
ICHCA is an independent, non-political and non-profit making association.

ICHCA has an influential and international membership in more than 80 countries with a network of 11 National Sections to put you in direct contact with industry colleagues around the world.
The Malaysian National Section, which is one of the 11 national sections worldwide, is made up of 20 members, comprising Binakon Sdn Bhd, Bintulu Port Authority, Bintulu Port Sdn Bhd, Di Perdana Holdings Berhad, Johor Port Authority, Johor Port Sdn Bhd, Klang Port Management Sdn Bhd, Klang Container Terminal Bhd, Keretapi Tanah Melayu Bhd, Kontena Nasional Bhd, Kuantan Port Authority, Kuching Port Authority, Miri Port Authority, Pelabuhan Tanjung Pelepas, Penang Port Commission, Penang Port Sdn Bhd, Sabah Port Authority, UMW Industries (1985) Sdn Bhd and Kemaman Port Authority.

Worldwide, ICHCA's membership represents the largest cross section of senior corporate executives, leading consultants, academics and authorities in the world of cargo handling and transportation.
It is also an international resource centre, providing management information and the exchange of technical data relating to methods and techniques in the industry while also assessing future trends and training needs.

ICHCA arranges opportunities for the membership to meet at an international, national and regional level at conferences, symposia, meetings, workshops and social occasions for the exchange of technical information and the generation of both formal and informal contacts.
ICHCA participates in and monitors the activities of the regulatory bodies of government, non-governmental and inter-governmental status to ensure that the practical difficulties encountered by the membership are voiced at an early stage of discussion in the formulation of agreements, rules, regulations and laws.

It is worth highlighting here that ICHCA promotes policies and projects that will improve the efficiency of the physical handling of cargo in all modes from origin to user.

With such a broad based range of objectives and activities, I am sure you can imagine the role ICHCA can play in the development of the cargo handling industry in Malaysia.
It necessarily follows, therefore, the decision to hold this panel discussion stems from our desire to stimulate views and opinions on the development of the cargo handling industry in Malaysia.
We all know that the cargo handling industry is growing at a rapid pace consistent with the development of the economy. With more than 170 million tones of cargo being handled at ports alone, one can easily understand just how large is the cargo handling sector in Malaysia. In fact the cargo handling sector in Malaysia is much larger than countries with several times larger population than Malaysia. The extent or the size of the cargo handling sector is largely because of the large external trade sector of the country, which last year totaled more than RM600 billion.

Aside from the expanding size of the cargo handling industry in the country, it has also been witnessing a dramatic structural transformation. This is reflected for instance in the pace of containerization, the expansion of rail transport (especially in intermodalism), the development of a vibrant physical distribution sector (especially in logistics & distribution), the development or air transport (including air express services) and the increasing overland outreach in surface transport (brought about by the construction of an impressive network of expressways and highways throughout the length and breadth of the country).

Further structural transformation awaits the cargo handling sector, in particular with the entry of globalisation leading to greater liberalization of the economy and the emergence of the K-economy leading to wider application of Information, Communication & Technology (ICT) in the cargo handling sector. We have no choice but to respond and respond we must quickly for otherwise we stand the risk of losing our competitiveness, market shares, and ultimately all our business.
It is necessary therefore for us in the cargo handling sector to constantly take stock and evaluate the vast sea of changes and development taking place within the industry as well as that imposed on by exogenous factors, including changing technology, management techniques and new concepts.

It is with this view in mind that ICHCA Malaysia has taken the initiative to develop and provide a platform for all those engaged in the cargo handling sector, as well as those in the relevant public management of the sector, discussion such as this. We need to actively engage in discussions especially in the absence of a proper consultative machinery between the private and the pubic sectors to look into the various issues affecting or impacting the cargo handling sector in the country.
In this regard, I would like to express my personal desire to seeing the evolution of discussion of the nature that we have today become an annual event to receive and provide feedback on issues, problems & matters affecting the cargo handling industry in the country. 
I am personally happy to see that there are representatives from public sector agencies with us today and I have no doubt that this discussion will provide them, as much as it will to the rest of us an opportunity to look into some of the government policies & initiatives with greater detail and insight.

I am indeed delighted that we have with us a distinguished speaker, none other than Professor G Naidu - probably Malaysia's most well-know transport economist - with us today to share with use some of his views and thoughts on the development of the cargo handling industry in the country. I am sure Professor Naidu, who is probably better in provoking us into thinking, will offer us a critical appraisal of the industry & the challenges that the industry faces ahead.
I am also grateful to the distinguished members of the panel to participate in the discussion but I do hope that as many participants would also engage in the discussion since we are all here to listen as much as to learn from each other.
I wish to thank all participants for the presence and also thank ICHCA members and sponsors for their support.

With that Ladies & Gentlemen, it is my pleasure, on behalf of ICHCA Malaysia, to declare the Budget 2001 & the Transport Sector Panel Discussion open.