NORTHPORT’S CAPACITY AND EFFICIENCY SET TO IMPROVE WITH NEW CONTAINER YARD

PORT KLANG, 7 October 2024 – Northport (Malaysia) Bhd (“Northport”), a member of MMC Group, announced the completion of its latest container yard, Block K. This state-of-the-art facility marks a significant milestone in Northport’s ongoing commitment to enhancing its capabilities and service offerings.

The new Block K container yard with 2,016 TGS (Total Ground Slot) has added 662,256 TEUs (Twenty-foot Equivalent Units) based on dwell time of 5 days to Northport’s capacity, bringing its total container yard capacity to 6,150,250 TEUs per annum. Construction of this latest terminal facility commenced on 14 August 2023, and was successfully completed ahead of schedule.

“The completion of the new Block K container yard will significantly enhance Northport’s overall capacity to handle higher volumes of containers. The project, which was completed 51 days ahead of schedule, marks an exceptional performance by the contractor, MMC Engineering Sdn Bhd,” said Tan Sri Che Khalib Mohamad Noh, Group Managing Director of MMC Corporation Berhad.

In line with Northport’s commitment to sustainability, the new container yard will be supported by environmentally friendly Electrified Rubber Tyred Gantry (E-RTG) cranes. Northport has procured 12 units of E-RTGs for operations at Block K. The first eight units are expected to arrive in December 2024, while the remaining four units will arrive by March 2025. This investment in green technology highlights Northport’s dedication to reducing its carbon footprint and promoting eco-friendly port operations.

Meanwhile, Dato’ Azman Shah Mohd Yusof, Chief Executive Officer of Northport, said, “The Block K development project is part of our ‘Reinventing Northport’ initiative. Its completion represents a significant leap forward in our capabilities and underscores our commitment to providing world-class port services, reinforcing our dedication to high productivity in meeting the evolving needs of our customers and adapting to the dynamic demands of the global shipping industry.”

The Block K development is among the key components of Northport’s broader “Reinventing Northport” transformation plan. This comprehensive initiative, introduced following MMC Corporation Berhad’s takeover of Northport in January 2016 was aimed at addressing several key legacy issues and challenges, including low productivity, declining throughput volumes and aging equipment. By enhancing terminal infrastructure and facilities, and upgrading equipment, Northport is poised to elevate operational productivity and efficiency, improve service quality and ensure sustained growth in an ever-evolving industry.

Prior to the completion of Block K, Northport had successfully developed another new container yard, Block J. Completed in 27 May 2023, Block J added 529,980 TEUs to Northport’s overall container yard annual capacity, setting the stage for the even bigger Block K project.

Northport’s transformation efforts have already yielded impressive results. In 2024 alone, the port broke its all-time high monthly container throughput three times, in May, July and August. On 20 May 2024, Northport welcomed MV OOCL Japan, the largest container vessel ever to berth at its facilities. With a capacity of 21,413 TEUs, this ship, owned by Orient Overseas Container Line (OOCL) Limited, set a new record for Northport, surpassing the previous largest ship, Eugen Maersk, which had a capacity of 11,000 TEUs in 2013.

For the first eight months of 2024, Northport handled a total of 2,441,706 TEUs of containers, marking a significant increase of 17.9% compared to the same period last year. With its solid performance thus far, Northport is poised to end 2024 on a high note, potentially making it one of the top-performing years for its container business segment.

Looking to the future, Dato’ Azman shared his insight for Northport and Port Klang: “With our achievements to date, we are optimistic that together with Westports, Port Klang will secure its place among the world’s top 10 busiest ports by the end of 2024. This milestone will not only strengthen Malaysia’s position in the global maritime landscape but also drive greater economic growth for our nation.”

As Northport continues to grow and evolve, the completion of Block K stands as a symbol of its commitment to excellence, sustainability and innovation. This expansion positions Northport to meet the challenges of tomorrow’s shipping industry while continuing to provide top-tier services to its customers and contributing significantly to Malaysia’s economic growth. 

“The successful completion of Block K, coupled with Northport’s ongoing transformation initiatives, sets a new benchmark in the maritime industry. This new facility not only expands Northport’s capacity but also integrates advanced, ecofriendly technologies that align with the Group’s sustainability goals. We are proud of this achievement, which strengthens Northport’s status as one of the key players in global trade and underscores Malaysia’s growing importance as a strategic hub in the international shipping landscape,” concluded Tan Sri Che Khalib.