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Transforming Kerteh Port into a Petrochemical Hub Port:
An Evaluation of the Prospect

Author(s): Jagan Jeevan, A.H Saharuddin

Citation: Jagan Jeevan, A.H Saharuddin, (2011) "Transforming Kerteh Port into a Petrochemical Hub Port: An Evaluation of the Prospect" Journal of Management Policy and Practice, Vol. 12, Iss. 6, pp. 74 - 80

Article Type: Research paper

Publisher: North American Business Press


Malaysia is one of the main countries in the world which produces oil, natural gas and manufacturing
petrochemical products. Thus, the port which specializes in petrochemical production plays a major role
in petrochemicals industry development. Kerteh Port in Terengganu, Gebeng in Kuantan, Tanjung
Langsat in Johor and Bintulu Port in Sarawak are four major ports involved in petrochemical industry.
Kerteh Port has a great potential to become the National Petrochemical Hub Port which attributes
mainly to safety procedure. SWOT Analysis which applied in this study shows that the Strength and
Opportunity of KPSB to develop is higher than Weakness and Threats that occur. The Spin off Benefits
that arise from NPHP improves the state’s economic status as well encouraging Research &
Development (R&D) in petrochemical industry. The outcome of this study supports Petronas and Kerteh
Port to focus and increase the additional necessity on Safety Procedure as the most important indicator
for the development. This is vital, as KPSB becomes a main competitor to other domestic and
international petrochemical ports. The profits and benefits from National Petrochemical Hub Port trigger
the consistency of PETRONAS to ‘build’ a sophisticated hub port, which will benefit Malaysian economic
status and enlarge the image KPSB worldwide.