Penang Port asks for FCZ in Butterworth

GEORGE TOWN: Penang Port Sdn Bhd wants to turn a section of its docks in Butterworth into a free commercial zone (FCZ) to revitalise the port.
Penang Port CEO Sasedharan Vasudevan said the FCZ has the capacity to generate spill-over business opportunities from warehousing to retail, contracting as well as transport and logistics.
"We have submitted a paper on this to the ministry and we hope to receive a favourable reply," said Sasedharan.
The FCZ can be a one-stop area to repack and reship many commercial goods, specially branded items under duty-free status.
"For example, Starbucks and Ikea can distribute their materials regionally or nationally through Penang," he said as the state is a widely connected hub through land, sea and air.
Most importantly, it would provide a hassle-free process to move out commercial goods as the Royal Customs and Excise Department would assist it in an efficient and speedier way, Sasedharan said.
FCZ would help to lower the shipment costing, reduce the documentation hassle, provide effective storage, and brings value-added dimensions to the entire process.
The duty-free port concept which was mooted by certain quarters was outdated as many countries no longer practise it, said Sasedharan.
Sasedharan said this in response to a statement by the Kebun Bunga assemblyperson Jason Ong Khan Lee, who urged the state government to consider helping the port authorities to secure the PCZ status.
"Here is an opportunity for Penang to shine again in terms of increased productivity and growth. The Penang airport and shipping can be powerful engines of growth here," Ong said.
Ong said many ports already have a FCZ but Penang is still lacking one.
"Now, the port is only dependent on local clientele and those from the south of Thailand," he said.
"Our annual organic growth is at three percent but with the FCZ, we can entice volume from Myanmar, Pakistan and India, where they can discharge their containers at our port and wait for the next ship to export their goods to China".
Currently, goods that arrive in Penang will take between two and four weeks to be cleared.
"The long wait for customs clearance is not attractive for commercial businesses," he said.