Port operators, logistics prime gainers from NTP
KUCHING: Port operators and logistics players could be beneficiaries of the new National Transport Policy 2019 to 2030 (NTP 2019-2030), analysts observed.
Some of the key objectives in the NTP 2019-2030 is to improve logistics connectivity to cater to the e-commerce boom, continuous ports upgrade and expansion plans, and enhance productivity and increase competitiveness for transportation sector.
In order to achieve these goals, the Ministry of Transport (MoT) will review and update rules, act and regulations with the aim of creating a robust and adaptable regulatory framework that supports the future needs of the transportation sector.
In a report, the research team at AmInvestment Bank Bhd (AmInvestment) said, the MoT is looking beyond the muchtalked-about Regulated Asset Base (RAB) framework (that is supposed to be finalised this month) to drive investment in the public transportation sector.
One alternative is the publicprivate partnership (PPP) model (which is not new as during the RAB consultation period, the Malaysian Aviation Commission (MAVCOM) has already highlighted that RAB should allow the flexibility for private companies to participate in the airport operations).
It also highlighted the trend towards the development of secondary airports (as what has happened in other parts of the world) to cater to the booming low-cost travelling. There are also plans to restructure the regulatory bodies in the aviation sector.
“Port operators (such as Westports Holdings Bhd, MMC Corporation Bhd) and logistics players (such as Pos Malaysia Bhd and GD Express Carrier Bhd) could be beneficiaries of the new policy, assuming the MoT is to put in place initiatives and assistance to facilitate the upgrading of infrastructure and facilities to improve efficiency and connectivity within the sector,” the research team said.
There are plans to upgrade rail facilities to and within ports to ease freight movement, enhance road-rail-port connectivity, integrate rail and road links to airport, port & industrial areas, promote the Digital Free Trade Zone (DFTZ) and encourage the development of urban logistics distribution.
“The policy's fifth thrust emphasises on expanding global footprint and promote internationalisation of transport services.
“The key strategies include to create an environment that facilitates local transport industry operators to become regional or global players, facilitate regional cooperation and agreement that improve the transport industry and ensure transport-related agencies are sufficiently equipped to support the drive in improving Malaysia's ranking in global competitiveness indices,” AmInvestment said.
All in, it retained its ‘ neutral' view on the transportation sector.
“While we believe the initiatives in the NTP 2019 are positive to the sector, they will take time to materialise.”