Bintulu broadens its cargo base and widens outreach

From a port that was planned primarily for the handling of liquefied natural gas and petroleum products, Bintulu port is firmly set in widening its product base and strengthening its catalytic role in the development of the national and regional economies.

The rapid industrialization and the structural transformation of the Sarawak economy has enhanced the role for Bintulu Port as a gateway port while the emergence of the Brunei, Indonesia, Malaysia, Philippines East Asia Growth Area (BIMP-EAGA) is offering the port a window of opportunity for it to play a regional transshipment hub.

The development of Bintulu Port in 1982 at a cost of RM558 million as a dedicated port facility to handle LNG produced by Malaysia LNG plant has been a sterling success.

From handling about 1.38 million tonnes of LNG in its first full year of operations, Bintulu Port, which was privatized to Bintulu Port Sdn Bhd in 1992, handled more than 16 million tonnes in 2000 and this is expected to expand further with the commissioning of the 6.8 million tonne-capacity MNLG Tiga plant (that will consequently make the MLNG at Bintulu the world largest LNG complex).

The handling of LNG has placed Bintulu Port on the world map. It is also by far the most financially successful port in the country with its impressive performance since it commenced operations.

Its profit after tax for the its financial year ended 31 December 2001 is expected to hit the RM100 million mark on an expanding turnover of about RM300 million. The bulk of its earnings come from the handling of LNG and petrochemical products.

In an attempt to build upon its success, the port is now making efforts to widen its cargo base, notably by handling containerized cargo. The demand for containerized cargo handling is increasing both from Sarawak and the region around it in tandem with the expansion of the manufacturing activities.

In search of this new expanded role, Bintulu Port, which is managed and operated by the public-listed Bintulu Port Sdn Bhd, recently invested about RM400 million in the development of dedicated container handling terminal.

The Bintulu International Container Terminal (BICT), which was officially commissioned on 15 January 2002, is strategically located at the doorstep of BIMP-EAGA (Brunei, Indonesia, Malaysia, Philippines East Asia Growth Area) which covers a geographical area of more than 690,000 square kilometers and a market base of more than 55 million potential consumers.

The BICT, which entered into service late 1999 handled 36,418 TEUs. Last year, the premier deepwater terminal in Sarawak posted an impressive 43 per cent growth in volume of containers totalling  68,000 TEUs in 2001, making it one of the highest growths in the volume of containers handled.

The container terminal, which has a capacity to handle about 200,000 TEUs, expects to handle about 94,000 TEUs this year.

A major achievement in its promotion of the BICT as a regional transshipment hub was its ability to attracted mother vessels. BICT as the only container terminal with post-panamax container cranes in East Malaysia has now the services of the Taiwan-based Evergreen Marine Corporation.

Evergreen has deployed mother vessels on a direct call.

The fixed-day weekly service with three - 1,100 TEUs capacity ships calls BICT every Tuesday for Manila, Taiwan and Hong Kong.

There is a growing network of feeder services linking BICT with ports in the region.

The 450-metre container terminal offers 1,812 total ground slots and capable of handling 181,000 TEUs per annum. 

BICT freight station covers an area of 66,450 square metres areas with more than 80 reefer points.

Further expansion of the port has also been planned in line with the growing needs of the economic hinterland served by the port.

The port operating company has drawn up plans for the development additional facilities at its second inner harbour, which will allow BPSB to develop a 1,000 metres of berth.

Among other facilities identified for development under the Bintulu Port Master Plan are palm oil jetty, a general cargo berth and storage facilities that will be carried out 2002-2005.

Upon completion of the general cargo berth at second inner harbor, the entire general cargo handling at current harbour will be shifted to new harbour.

The development of the new facilities will also provide additional capacity for BICT which will be enlarged by another 515 metres from present 450 metres with natural depth of 14 metres.

The effort to seek wider market is being supported by the increased accessibility to the port with the development of new and improved surface transport link.

The construction of the 178-km coastal highway Between Kidurong and Bakan is viewed as an important development that will boost total volume of box traffic via BICT. 

The proposed Pan Borneo Highway is another link that is expected to link BICT with Brunei Darulsalam, Sabah and West Kalimantan.

The RM581 million infrastructure link will also position BICT to play an expanded role in BIMP-EAGA.

According to BPSB officials the prospects for the port to play even a bigger role in the region is bright.

BICT officials have made a series of visit to Vietnam and other regional ports and studying  the possibility  of establishing good feeder  network to  tap the  huge market.

However, the ambition of Bintulu Port to become a regional transshipment container port for the BIMP-EAGA will not go uncontested. With the privatization of Brunei’s sole gateway port, Muara to Port of Singapore Corporation, attempts are also being made to pitch for the regional cargo.

Also, closer to home Kuching Port, which has a large container cargo base than Bintulu Port, has made known its ambition to attract regional cargo as well, especially with the commissioning of its new facilities at Senari.

But then, with the continued bright prospects of the LNG and petrochemical industries offer Bintulu Port little or no reasons to be concerned about its performance in the years ahead.