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Basir Err.. a lot more on the academic la, in my opinion you know, I wanna share the background of the Northport. Vincent Alright. Basir Err..as you know that Northport is one of the port operator being privatize by government, we are the first privatization formed by then Prime Minister Tun Dr Mahathir and errr that exercise in 1986 when all the container operation being privatize and followed…..that time we privatized under Klang Port Terminal or KCT then follow the rest of the services in 1992. So called Klang Port Terminal. So call this 2 companies in 1992 and 1993, Klang Port Management also started container business. And then we see that because our mother company is the PNB so that we sisters fighting each other, KCT and KPM. Err..because seem that KCT and KPM are the shareholder and the management look at the future development at this northport and not enough saturated area and we can expand in term of the land. We don’t have the excess land compare to the Westport, then we merged in between the KCT and KPM. And that we called Northport. So errr we are errr running toward company history, I said we are area is not enough, saturated area compare to the Westport they make a call to treasury for more fund from government and till today Westport still under government so it won’t have any problem. Huzeir No any problem Basir Because our port since 1903, 100 over years we try our best in the sense of upgrading. So the current developments at the A1 wharf to build up another wharf plus we purchase new equipment, that’s what we spend about RM 1billion for our expansion so that A8 wharf will be deepening wharf to cater the biggest vessel in future. So that we plan now order 6 super mega post-panamax …to cater for the biggest vessel. So that’s the development currently and the future so we are going to spend RM1billion for the infrastructure as we told you earlier, the we are talking since the Klang Port Authority take over

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Page 1: Northport Interview

Basir

Err.. a lot more on the academic la, in my opinion you know, I wanna share the background of the

Northport.

Vincent

Alright.

Basir

Err..as you know that Northport is one of the port operator being privatize by government, we are the

first privatization formed by then Prime Minister Tun Dr Mahathir and errr that exercise in 1986 when all

the container operation being privatize and followed…..that time we privatized under Klang Port

Terminal or KCT then follow the rest of the services in 1992. So called Klang Port Terminal. So call this 2

companies in 1992 and 1993, Klang Port Management also started container business. And then we see

that because our mother company is the PNB so that we sisters fighting each other, KCT and KPM.

Err..because seem that KCT and KPM are the shareholder and the management look at the future

development at this northport and not enough saturated area and we can expand in term of the land.

We don’t have the excess land compare to the Westport, then we merged in between the KCT and KPM.

And that we called Northport.

So errr we are errr running toward company history, I said we are area is not enough, saturated area

compare to the Westport they make a call to treasury for more fund from government and till today

Westport still under government so it won’t have any problem.

Huzeir

No any problem

Basir

Because our port since 1903, 100 over years we try our best in the sense of upgrading. So the current

developments at the A1 wharf to build up another wharf plus we purchase new equipment, that’s what

we spend about RM 1billion for our expansion so that A8 wharf will be deepening wharf to cater the

biggest vessel in future. So that we plan now order 6 super mega post-panamax …to cater for the

biggest vessel. So that’s the development currently and the future so we are going to spend RM1billion

for the infrastructure as we told you earlier, the we are talking since the Klang Port Authority take over

Page 2: Northport Interview

in 1983, 1973…until now we still using the warehouses. So can you imagine how many years of the

warehouses.

Huzeir

40 over years.

Basir

So of cause a lot of the maintenance we have to do, example the warehouses we have to upgrade,

change the roof, even the roof 1 warehouse cost over RM1million. That’s a challenge for us. At the same

time we are talking about our CSR, we are close with our community and of cause there are how we are

taking of our stuff, whereby you can check with the HR we are experience with the less than 1%

turnover. So “siapa yang datang Northport takkan resign”, in another word. Maybe because of the brand

itself Northport, the way we worked in the Northport as a team. That’s important even in the Malay

market..”kalau nak dipinang dara” so the parents will ask you work where and if Northport, no problem.

That’s how the brand of the Northport. Even in the community, everywhere we go as long we wear the

Northport logo people will respect us. That’s we are middle size of the company but the profit we are

making more. That’s why we able to give more bonus and we share. You work harder, you get the work

done and the profit we share. Unlike the TNB, they are made billion of money but bonus not much

because the money is fund to the government. What we are solely 100% private company. So our cash

flow very huge, whatever we develop for the future plan and upgrading we are using our cash flow. In

the annual report we are using cash. Even the local bank are not comfortable with us cause we are not

asking any loan….

Huzeir

Loan.

Basir

.....from them. But the other port yes cause they don’t have the money. For us currently we have a cash

flow because our current subsidy NCB Northport and the KN have cash flow of RM900 million, RM600

million for Northport and RM300million for KN. Okay, back to the. I just wanna show you the slide of

Page 3: Northport Interview

logistic whereby what related to the study for your final year thesis Halal. We are going to show to the

presentation of Northport Distripark. It is 100% owned by Northport and is bought over from the IPK

and Pal in year 2000. Northport vision as you know that to become the main gateway and leading

regional hub for maritime for 2020. It is our vision since we privatize all the way. Our Northport mission

to achieve highest standard and quality in cargo handling and providing state of the art infrastructure.

We have to expand and develop whatever. That’s why I said we had order 6 mega super post panama is

the latest design so that we are not far behind other ports. So whatever the modal “keluar”, we buy.

Cause you know each crane cause RM 40million each, very expensive.

Huzeir

The crane is intended to cater the new fleet which is bigger and much wider. That’s why we need to

catch and if we fail to provide these they may go to other places.

Basir

Okay, this is only the scenario a bit. Next, this is the strategic location of Northport, so we are

surrounding the Klang Valley. That’s why 90% of our local cargo came from the Klang Valley area. So it’s

like advantage for us, they sent the cargo to Westport will be extra miles than carry to Northport. If they

sent to Westport will add another 23Km away and increase the cost. You know the cost of toll rate,

talking about fuel and maintenance. Even for example one of our customer recently, they are using

Westport to export our Proton cars. So why they are coming to Northport cause they “ tak boleh tahan”

and they said that the car carrier all way from the Rawang go straight to the Westport and Northport

they are saving one lorry in each trip per day. Let’s say they go to Westport only 4 trip a day, in the

Northport they can go for 6 trips. That’s why they come here to Northport and the cost factor.

Our marketing is very aggressive, we know customer in our area. So we know the area surrounding area,

the company we are dealing and it’s in our bank data. So this is area we know and we tackle the

company one by one. That’s our strategic. Last time this area we called this Taiwanese Free Zone area.

Now no more already and we just call Bandar Suleiman area. Last time Taiwan “ada” and now “takda”,

the business not there. So this is an advantage and let say cargo, if come from southern Thailand 8

hours. This 8 hours is lorry “punya” speed and not the car, I can reach south Thailand by 4 hours. But this

Page 4: Northport Interview

is by the lorry speed, Johor Singapore. It is advantage from the surrounding middle area, Perak , Pahang,

Negeri Sembilan, Malacca and Johor because you see the Kuantan Port is more on the feeder. Some of

the biggest vessel cannot berth there cause of the lack of infrastructure. So that’s why all the cargo

surrounding is send to the Northport. That’s why our Northport business 30% of transshipment, only

70% local. So we are our player all here and in term of the business more to feeder services.

Huzeir

In the PTP case they almost 100% transshipment.

Basir

Because our strategic we want local container. In term of tariff yes because the profit, we don’t want

the volume and we want the money. Because local container, 20 footer our charges and we are talking

about terminal handling charges RM230. Transshipment only cost RM130. If you are business, you want

what. Of cause you want the local container but like PTP and Westport they are concentrates on the

transshipment. Let them fight for the volume but in term money they don’t make much money.

So this is the 4 main highways after the completion of the SKVE. SKVE is under developing that link a

second bridge to the Westport. We also have advantage on that highway other than Kesas, Federal and

NKVE. This is our throughput business, so it’s like yoyo that sometime up and sometime down. It

depends on the Malaysia economy and we know that if the export drops from port, not from the

ministry. This is our logistic services, the VTC open yard which keep our car activities. Haulage which

serves in and out of the container. Chill room mainly for fruit stuff and only the fruit only. We don’t

keep anything else other than fruits and is maintain -5 degrees.

Huzeir

0 degree in cold room.

Basir

Racking system used to maximize our warehouse space. With the racking we can stack maximum 5 high

and depend on the roof height. Air zone twice a day to send to Mas Kargo so that one more on urgent

and expensive cargo. We discharge the cargo from the vessel and unpack then immediate resend to the

Mas Kargo to fly to other destination. And on dock depot keeping all the empty container in our port. To

save the time and cost but now most of the shipping line keep empty container in the outside depot

cause the government give them a lesser rate. Last time no cause have to keep in the port. Cause

Page 5: Northport Interview

outside depot offer as little as RM0.50 per day but here we based on current tariff. But to transport

them take 3 to 4 hours but if they keep here we can service them within 5 minutes. We have 1million

square feet CSF area and 12 warehouses. So the biggest is 150000 square feet in D2.

Huzeir

The 4 warehouses total around 476800 square feet. The different is that 3 warehouses are elevated and

1 for grounded operation. CSF more on the ground floor operation which no loading bay because it

straight send into packing bay.

Basir

Elevated we can only stack minimum 2.5 tons per square where as ground we have unlimited stacking or

12.5 tons. Next is packaging services like the Clark shoes are imported from Vietnam, China and

Bangkok and repackage. We make the code and re-export back. So you imagine the price but in the

market the price is higher.

Rubin

So actually is not Clark shoes la

Basir

Clark shoes, it is original because all the Clark or any brand has their regional factory.

Huzeir

Another example is Nike which have factory in Thailand and Indonesia.

Vincent

But the packaging is done here right?

Huzeir

Yes because this is the center of distribution and the order for the goods will distribute accordingly.

Vincent

For the Malaysian market or Asean?

Basir

It depends on the order but we serve both. Our vehicle handling around 250000 slot in the port.

Page 6: Northport Interview

Huzeir

You have to understand there are 2 ways of handling of car, 1 in form of container and another from the

RORO vessels. Normally RORO vessels are for export and container for the import of recond car like

Lamborghini and Ferrari. Production car such as Toyota or Honda such as CR-V will go thru RORO

vessels.

Vincent

Okay.

Basir

Okay, this is our market segmentation. Centre for upstream activity at Northport and this is for Centre

for downstream activity. Upstream and then downstream. This is the product mix of the cargoes in

Northport, you can see the regional distribution cargo, fast loading cargo and regional for NCR DC,

international recruitment cargo. That’s what I said just now involving the MAS kargo then national and

the MCC cargo, Multi Country Consolidation and traditional import and export cargo.

Huzeir

This is the hub and spoke system.

Basir

This is the comparing between system A and system B. This is the NDSB area; you can see the biggest D2

150,000 square feet and D4 where we had the Halal area 115,000 square feet. Its okay, we will give the

all this slide for the study. This is all the activity actually what I said earlier connected to the 5 national

highways. Then is the rail service, we had 10 rail services to Bangkok and 2 dedicated airport daily

network to Malaysia Airport, Mas Kargo. This is our top 5 shipping customer, Wan Hai, Trans Asia, Pan

Ocean and more but these are the top 5 customers. This is our master plan that I had told you earlier

about the expansion plan in wharf. After we expand the new wharf, we need the more container yard

and so it will affected to the area of CFS1. So look like all the 6 warehouses in CFS1 going to demolish

and convert into new 1. So we are short of the capacity in term of the warehouse space and so we are

going to centralize all the warehouse activity in NDSB. You can see that the current 1 D1, D2, D3 and D4

is the current warehouse. We are going to build the biggest warehouse D5 and D6 with 200000 square

feet. So all together except the CFS2, we are not touching the CFS2. So we are going to centralize here.

In term of the saving, we are going to save in term of manpower, in term of the operating cost, you

Page 7: Northport Interview

know. So this is what we plan only by 2017. But we already start planning last year for the 5 years

master plan.

Okay, back to the business of the Halal. Okay, I just. “Tunjuk Halal punya slide”. The Halal presentation,

the “yang” audit oleh Price Water Cooper House.

Huzeir

Okay, now this about Halal. Previously the Halal certification we do under HDC. Err, however we manage

to get in….i was not at the time. My manager was retired last year and I was in this position not even 1

year in taking this responsibility and support. But err, due to the expiry of the certificate, and HDC has

issue a regulation said that only 1 government body or authority to issue this Halal certification and they

have no longer have to authority to provide this certification. Jakim is the sole party to issue this

certificate that involved Halal. We got this certification but is by HDC. But it is already expired and we try

to convert this certificate because we already have the certificate for Halal for D4. We try to convert into

Jakim. We already did the ground work, all the procedure that we comply and is just the matter of Jakim

getting the final say of our say. However…..

Basir

The certificate ya, already expired February 2011. That’s why we in the process of renewal and there is a

lot of excuse by the Jakim. We called them and they “cakap nak” ISO1400 bla bla bla bla, and now they

come back with the last email and said that ask us to start renew or asking to reapply for new

certification.

Huzeir

Fresh certification.

Syazwan

So the HDC certification given….

Basir

No, I’m involved in these Halal apa. And during that time, the government give the authorize, authority

to HDC to issue the Halal certificate.

Huzeir

No problem.

Page 8: Northport Interview

Basir

That time during Khairy Jamaludin and Pak Lah la. So we don’t have any problem and we apply in just 6

months and we get this certification.

Syazwan

Hmmm…

Basir

Then after Khairy no more in the Halal World Halal Forum chairman, now all the Halal will be give back

to the Jakim. This is what happening now. How they work in the Jakim. People all fed up and in the last

case ya, one of the restaurant “sama la”. They “nak” renew the certificate take longer time then just

continue with the Halal logo that expired certificate and they come make a check, they “masuk” TV. “Dia

cakap dia takde Halal”. What is this you guys talking about, we are business you know. For me it

business you know and we could not afford delay in your part. We just want a new certificate because

all the procedure and process are complied. This is the Jakim work la.

Huzeir

Because we…we….we….

Basir

That’s why we are frustrated la. That’s why I told you in the email I frustrated about this.

Huzeir

In the working session in Jakim, they mention they are insufficient going towards the MS2400. MS2400

is cater for the logistic issues pertaining to Halal.

Syazwan

Yes.

Huzeir

They had not finalized on that. They was supposed to finish last year. But the latest feedback we get

from Jakim is they still had not finalized and ask us to study about the clause available in the MS2400 so

that we really understand what is the translation in MS2400 and once they are ready, we need to go

Page 9: Northport Interview

back. Cause now we even cannot go into our application. It is online application and they already

blocked our access. So we cannot apply as a new because they already block our name. So they latest

thing is we have to wait until they completed the MS2400 by Jakim.

Basir

So we will give you the copy of this la.

Huzeir

Actually the Jakim, they don’t have any expertise in this Halal logistic la. Even our counterpart KN.

Basir

Ya.

Huzeir

They also have the same problem. Because our certificate expired early and we manage to know the

problem. Then KN their certificate expired last year, earlier last year. They said they face the same

problem and stuck. They cannot proceed like us.

Syazwan

I guess the issue here is about certification.

Huzeir

Ya.

Syazwan

Convert from HDC to Jakim.

Huzeir

Because we cannot split between Syariah “punya” term and also the business. They don’t have the

expertise. Because we the purpose of having this Halal is to attract potential customer and bring the

Halal cargo store in our place and at the same time to attract others come due to the facilities provided.

Compare to others and to benefit the customer in the free zone. But seems like we in the limbo state,

Page 10: Northport Interview

we are unable to attract the customer and we have lots of enquiry such as “do you have any Halal

facilities, Halal cold room ?” and when we refer to back to the Jakim, a lot of a errr….

Vincent

Steps..

Huzeir

Steps that we need to and sometime we cannot understand why they ask us the ingredient. We are not

the manufacturer and we are not the supplier of the ingredient but they ask us to provide the

ingredient.

Basir

They still cannot understand what the port function is.

Huzeir

We only provide storage .

Basir

I think we need to change the Jakim’s mentality. I got fed up la, not only our industry. We need to

change the Jakim’s mentality itself. For me is a very simple you know, how come the 2 years until now

they just replied the email and said we “kami mencadangkan pihak Northport memohon baru…”

Syazwan

New certification.

Basir

Not renewal, it didn’t stated renewal. I don’t know what they talking about.

Huzeir

Because we deal with HDC and they understand us on the business point of view. Because by doing so,

the government of Malaysia they had the incentive doing , if you provide Halal service what so ever you

are entitle for tax exemption for certain amount that I not sure on that. We try to capitalize that but we

also unable to do so because stuck at this stage. For us the Halal in Northport, our area just confine to

storage. If you want more comprehensive or more successful story, KN is the best because they cover

from factory, door to door. Because they have everything, the warehouse, the transport and then direct

Page 11: Northport Interview

to the customer. I mean the Halal coverage is comprehensive. Unlike us we just provide these special

area and the marketing is done by the company itself la because we run thru your questions asking

about the packaging. Because Jakim is very stringent and because once you put Halal in this area, you

cannot put other non-Halal product in the area. Even if put far away and cannot inside in the same

“gudang”.

Basir

If you are talking about logistic Halal aaa, I can say la is a failure in Halal promotion in Malaysia. Because

what I try to say is this, if you go for MILS and you know MILS?

Vincent

Yes, MILS.

Basir

They invested RM250million in building very nice warehouse in the Westport. But they don’t have the

Halal actually. Even they bought the Samak machine is not used because of the market Halal in Malaysia.

We are talking only Halal but in term of the export we are not export anything Halal. That’s the problem

and the issue of the debate I been attended in these Halal just say about Halal. Even for Malaysian Halal,

Nestle. Why Nestle export the product to Middle East and they not allowed to put the Halal logo?

Because the Middle East are not recognize the Malaysia Halal logo. “Dia cakap boleh”, I can export the

Milo for example but there is no packaging in the Halal logo and after we receive in Dubai port and then

they cop their own logo. You see, that’s the dilemma for us. Where as you go to the market I attended in

one Halal conference in Chulalongkorn University in Bangkok, you know how they very aggressive in

promoting the Halal product for non –Muslim country la. Even they have the Halal faculty in

Chulalongkorn University and the lecturer in non-Muslim. I meet the lecturer and they said that their

export Halal products is 5% of world market. Where as in Malaysia is less than 1%.Because the quality of

the export for Halal is trustworthy in the Middle East. Now for example last time in the Halal hub in

Rotterdam in Europe, now have the 2nd largest hub in the Hamburg Port. Because the Europe promotion

is very strategic in the sense of that even in the Europe now the populations are believe it is safer taking

the Halal product than the non-Halal. For example in the Hamburg the 3rd Halal Hub in Europe even the

Muslim in the country number only 3millions. But the people there need to Halal product. Why we are

in the government are not promoting this? That’s the question. That’s why I said that Halal in Malaysia is

more onto the politic. That’s why Jakim also doing the politic and not doing their job. I’m too critic of

Page 12: Northport Interview

them. Actually there is an advantage as there is 1.8 billion of Muslim in the world and furthermore we

Malaysia are a Muslim country. It is advantage for us you know to export as many to other country

especially the Muslim country. But why? Why the other Muslim countries are accepting their Halal?

Example in errr…this is the issues I given even in Australia that export mostly beef.

Huzeir

Lamb.

Basir

Lamb and you know that Halal chairman is the Christian, not the Muslim. That’s why one of the world

forum I attended in the KLCC for years ago, we delegates asked why. “Dia cakap” doesn’t matter I’m

Muslim or Christian as long I followed Dhabihah. Okay we follow how to slaughter animal according to

the process and we follow all and accepted in the Halal community. Even the Jakim went to Australia

and they accepted. Then the issue here, I’m talking about the global issue here in Halal. Even the

Indonesia export all their beef thru Singapore? Not direct thru their country? And the Indonesia more

accepting the Singapore logo than their own logo. Because “banyak” logo Halal in Indonesia “tipu”. You

know that’s the problem and take make a 3rd party in Singapore to. From the export in Indonesia to the

Singapore and they cop the logo and re-export back to Indonesia. Even like the Middle East like Dubai

they don’t accept frozen beef. They import beef from the Australia because they don’t believe. They

want livestock, that’s why Australia importing from New Zealand to the Dubai state. That’s why among

the Muslim also question about the Halal all “macam” we called suspicious among them. Even I talked to

the Professor Rohani from UITM. They also study on this Halal. That’s why I said it’s a waste of time you

know. Because the first place I said just now is the Jakim. If you are non-Muslim, your market is for

Muslim. Let say you are business of fast food or whatever, you “punya” target is not only non-Muslim,

also Muslim right? So you need the Halal certificate for the business. And you know the process to get

the certification is long and you cannot survive with that in 2 years. Like us 2 years until now. So how are

we going to promote the Halal? We are only talking about the Halal storage area or the space or the

warehouse area. We are not talking about Halal the whole port. If you are talking about Halal the whole

port, discuss with the Jakim and they said gonna “Samak” they whole machine.

Huzeir

Yes, that’s what the Jakim said.

Page 13: Northport Interview

Syazwan

This is ridiculous.

Basir

The “kapal pun kena samak”. What is the mentality you are talking about?! You know how come this

make sense. “Kalau you nak” Halal the whole Northport, you will have to “samak” the whole machine.

What are you talking related to my machine, and you know I only handling the box thru machine and

not the cargo.

Vincent

It’s not logic.

Basir

You must all “kena samak” . That’s why we decide only D4 for Halal. Not for the whole port.

Huzeir

But we cannot let the area occupied. Cause according to Halal, we cannot put other things in the area.

Basir

That issue la, that’s why I cannot see for example of Nestle which the chairman said that product are

package from the factory and export. We as a port just handle the cargo only and most of these Halal

food in the container entire journey from import to export and not package here because in term of the

cost. Halal product “berapa banyak untung ma”. That’s why we package in the factory and just export

thru your port. That’s why I cannot see the opportunities in the one warehouse in the Halal that don’t

have Halal product before our expiry of certificate. Only we keep electronic items. Even beef, we are

importing thru the container and not unpacking here in the cold room. Because to build up the cold

room is one thing, but we make a survey of import beef is direct in the refeer container and not unpack

here.

Vincent

So it didn’t expose out.

Page 14: Northport Interview

Basir

Yes, because the time that from unplugging the reefer container is only 8hours and it has to be put

direct onto the truck and deliver to their premises. That’s why the issue here I cannot see that we

promote the Halal for example the freight forwarder that also have Halal certification in Bandar

Suleiman and they said “bukannya ada” Halal cargo. For me in the sense of Halal in port industry is

because on the name.

Vincent

Just to attract.

Basir

Yes. But in term there is nothing.

Syazwan

In term of dedication services there is none.

Basir

Yes, you are talking what to export in Malaysia for Halal product. Okay la except the Nestle, what are we

going to export in Halal? Cosmetic? We import and not export.

Syazwan

There’s less opportunity for exporting.

Basir

Like I said, nothing we can export in term of Halal products.

Syazwan

Unlike Thailand.

Basir

Yes, unlike Thailand. In Dubai, they are not accepting fruits from Malaysia because Malaysia “banyak

pakai” chemical. That’s why Singapore banned all the fruits enter into their country because they said

we are using a lot of chemical that cause cancer. That’s why they plant their own durian tree in an island

Page 15: Northport Interview

in Indonesia. Like the chicken for example, the size of the chicken without injection are like the normal

size of “ayam kampong”. Compare with us the 38 years old chicken can “makan” already, 2kilo. But you

go Indonesia, they don’t allowed injection to the hormones. Same goes to Thailand but why Malaysia

allowed that? That’s why from what I see, I cannot see the opportunities in exporting Halal products

here in terms of the logistic industry. That’s why you can “tengok MILS kosong, KN gudang kosong”.

Huzeir

And you cannot simply put the Halal logo.

Basir

You can be fine for RM1million. Maximum RM5millions.

Huzeir

For the first offence.

Syazwan

Because on Monday this week, we went to MILS and interview the CEO and said the same thing Thailand

in term of Halal marketing are very aggressive. But in Malaysia….

Basir

Yes, same like what I said just now.

Huzeir

Actually Jakim don’t have any expertise in this field to tackle this issue. When we address that and they

laugh la. Because they don’t understand the business aspect. Can show you the respond of the email ,

“ditangguh sepenuhnya sehingga Jakim menyelesaikan MS2400”.

Basir

The new one “suruh” apply new one.

Vincent

So it’s going to take another 2 years for the new one ?

Huzeir

Ya.

Page 16: Northport Interview

Syazwan

So I can said that among the issues that Northport face in term of Halal logistic are the lack of

communication and collaboration among Northport and Jakim and take longer process and in Jakim

alone there is no expert in logistic? And lack of dedicated services for example like Northport they only

had dedicated warehouse and do not have KN KN is the best example. And lack of recognition in

Malaysia Halal logo as compare to Thailand.

Basir

Yes. Because one of the world Halal forum its resolution is to use one logo but until now still haven’t

succeed. But “semua orang” proud of their home country logo. Like Malaysia we are proud at our own

logo. That’s why I said the Malaysia government spend RM15million to just for promotion Malaysian

logo to the world, but do you think other country are accepting?

Syazwan

Any other issue you would like to highlight?

Huzeir

Because of the certificate.

Basir

Okay, like I said our nature of business 80% is in container. The remaining is in bulk and there is only 4%

of cargoes are packaging in the port and export which Halal product is 0%. We are now in the trend of

containerization which cargoes are packed in factory and send to port for export. Because for example,

if they discharge the container in the factory, they save a lot of money in term of FCL container. Because

FCL versus LCL container, LCL a lot of consignee which take a lot of time and cost to manage. That’s why

they go for FCL which is cheaper. That’s why in the car business, they are packing into the container.

Because in one 40 footer container, they can pack 2 or 3 cars in the container if they maximize the

space. If in the 40 footer, they wanna export to Sri Lanka for Viva, they can put in 5 cars. It is a lot of

saving cause a container cost around RM420. But if you go for RORO 1 car may cost about RM500. That’s

why the trend now is export thru container.

Page 17: Northport Interview

Syazwan

That’s why Northport trying to fulfill FCL.

Basir

Yes. But if you trying to say about the global Halal issue, I cannot see you wanna export in FCL except for

the Nestle product. If let say you wanna reserve one container for Halal, the capacity of the container is

high sure will mix with non –Halal cargo. That’s the dilemma. For example another issue, the MISC

express. Misc express 1 and 2 to Australia and Middle East are now stop cause there is no capacity. It is

very sensitive if you see the Jakim, this “tak boleh” and have to stack the cargo 6inch above the floor.

But normally the Halal product is in the packaging and not loose what. Even in the tin or issue of 1 pallet

of Halal and another pallet of non-Halal product because it didn’t mix or expose. Unless it “bocor” or

“percah” then it will lead to an issue. But Jakim said “ Tak Boleh”. Then I said the issue in supermarket

where there is Halal and non Halal product but we all are using the same trolley. Then what are the

issues? Like in the hotel, they only Halal the kitchen and not the whole hotel. If they Halal they whole

hotel, that’s mean the hotel will go bankrupt and collapse because didn’t offer liquor. That’s why I said

how you going to certified the whole port Halal?

Vincent

Make no sense.

Basir

That’s the mentality. Dilemma. I talked to Dr Rohani which she also agreed what I said. Actually Jakim

should guide us and if they don’t have expert they can hire for us or work together to solve. In HDC, we

even create a logistic manual procedure for them.

Syazwan

Halal is more to a concept or brand.

Basir

Yes. Malaysian have the mentality. For Muslim they see the logo of Halal or “bismilah” in “mamak” they

go but there might be fake. But in Thailand, they will ask if its Halal or not just to make sure. I spend

10days in UK and I don’t mind eating “roti” all day. Unless I have to go to Halal street. But in Europe the

hotel provide the Halal meal. Even in Indonesia there’s a lot of fake Halal restaurant.

Page 18: Northport Interview

Syazwan

This is very eye opening.

Basir

This is about experience but actually there’s a lot of opportunity in Halal industry.

Huzeir

But we stuck on this issue of Jakim.

Basir

KFC example in Thailand, I attend Halal forum there for 3 days and I eat kebab near by the hotel. And

the last day I enter the KFC just plan to buy the potato chips but surprisingly the KFC in Bangkok is Halal.

Why? Because Thailand they want to make sure all these fast food get the Halal certified because they

want to attract tourist which some might be from Muslim country. If I know KFC halal I be eating KFC

everyday there because Halal. But not in Indonesia because KFC there they don’t put Halal logo and

mean that could be. If a Muslim feels 50/50, they won’t take it.

Vincent

So it’s kind of surprising that Thailand a non-Muslim country have a quality Halal standard.

Basir

That’s why they very successful in the Halal. No worry about Halal in Thailand. Malaysia also has the

opportunity to do that. We can learn from them and export our product but quality problem. For

example of banana to Middle East. Why Saudi Arabia import banana from Africa rather than Malaysia

which is a Muslim country? I went to haj last 2 years and I ask but there’s not product from Malaysia.

Because they are Muslim country, they don’t have Halal logo for their products except the non-Halal. All

product is Halal except the product is non-Halal. Malaysia also can do that, why you particular on the

Halal product than the non-Halal. We should follow the their method that highlight the non-Halal

product only and the rest is all Halal because majority of the product here are Halal. So that’s the issue

and anything else ?

Page 19: Northport Interview

Huzeir

So are we still going to continue with the question provided ?

Basir

Anything you want us to add ?

Syazwan

Any issues pertaining to the warehouse?

Huzeir

No because there’s no activity around there. It is not empty but we kept the electronic goods there

cause is Halal and only non-Halal product such as liquor is not kept there.

Syazwan

I think we got a lot of issues over here. 1 day is not enough.

Basir

Come come, there’s no problem.

Huzeir

I think if you want more detail one you can go to KN.