Significant of Port in Malaysia
MIICEMA 2014 10-11 November 2014
Hotel Bangi-Putrajaya, Malaysia
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Port activities are usually highly dependent on the specific port activities and size. For example, the activities carried out in the container port are different from activities in the
oil port. The same reasoning is from the perspective of the size, general depth, and type of ports services that being offered such as handling, storage, warehousing, added value
services stuffing, stripping, assembly, packaging, labelling, testing, integration, separation, transportation between modes using a pipe, truck, train, or ship to a short
distance from the ocean, maritime services pilot, tugs, boatman, ship traffic control and other services Mazaheri and Ekwal, 2009. Port related player consist of major port
actors and other service provider that operate close to port parameter whether located inside or outside of the port Coppen et. al. 2007, cited from Jacob and Hall, 2007.
Port supply chain activities adapted from Lee et. al. 2003 can be generally described in figure 1 consist of several major task namely provide facilities and service for ship,
provide facilities and service for cargo, administrative formalities regulatory, safety, security, traffic, port operation, human resources, finance etc, cargo transfer, and value
added activities
Alderton 2008, Mora et. al. 2005. Establishment of regulatory mechanism are undeniable important to distinguish between legitimate and illegal cargo
transaction. Movement of unverified cargo either to the local economy or to the public safety is being prohibited to cross national border through effective enforcement of trade
regulation. Lead government agencies in the like of Customs, Police, port authority , and other competent agencies have a big responsibility in facilitate and enforce the trade
regulation to ensure proper conduct of import and export activities Trade Facilitation Handbook, pg.22Grainger, 2007. Furthermore, port operation is an integral part for
supply chain activities that realize four intrinsic flows that explained the functionality of the supply chain namely; material flows, information flows, finance flows, and
commercialtransactional flows Lu , 2011. As depicted in figure 1 from SAP publication that discuss of current SCM trend Knolmayer et. al., 2009 that involve
material, financial, and information flow. The first three flows are quite visible in the business environment. While the last component is slightly conceal from the public as its
only deal with the change of product ownership along the supply chain.