SEMOGA BERMANFAAT

1. NETHERLANDS MARITIME INSTITUTE OF TECHNOLOGY
GROUP ASSIGNMENT
PRINCIPLE OF MANAGEMENT IN JOHOR PORT BHD
COURSE: DIPLOMA IN MARITIME TRANSPORTATION
MANAGEMENT
SUBJECT CODE: MGT 2307
SUBJECT NAME: Principle Of Management
LECTURER: Miss Norazryana Binti Mat Dawi
CLASS: A1
NAME STUDENT ID
ADLI HAKEEM BIN ROSMAN 1160502023
NUR BATRISYA BINTI MOHDADNAN 1160502242
AHMAD FIKRI ZAIDI 1160502241
NURUL AMRI BINABDULLAH 1160502054

2. 2
MARKS ALLOCATION
Assessment Descriptions Marks
Written
report
You are to organise your report following the below format;
CHAPTER Marks (%)
Chapter1 – Introduction;Backgroundof the
company
15
Chapter2 – SWOTAnalysis 20
Chapter3 – The BCG Matrix 20
Chapter4 – Porter’sFiveCompetitive Forces 20
Chapter5 – Conclusion 15
References 5
Formatting&English 5
TOTAL 100
Formatting:
1. Times Roman 12
2. Spacing : 1.5
3. Justify text
4. Print on double sided.
5. Use standardized NMIT cover page
6. Minimum pages: 20 pages (excluding cover)
7. Staple bind only
8. Use the APA citation and referencing format.
Additional Guidelines:
1. Plagiarism is not acceptable.
2. Plagiarised assignments will receive a ‘Fail’ mark.
3. Please refer to “rubric” for your guidelines.
20%
Presentation 5%
TOTAL 25%

3. 3
Contents
1.0 INTRODUCTION TO JOHOR PORT........................................................................................ 4
2.0 SWOT ANALYSIS OF JOHOR PORT....................................................................................... 5
2.1 STRENGTH..................................................................................................................... 5
2.2 WEAKNESS .................................................................................................................... 5
2.3 OPPORTUNITIES............................................................................................................. 6
2.4 THREATS ....................................................................................................................... 6
3.0 BCG MATRIX OF JOHOR PORT............................................................................................. 7
4.0 PORTER FIVE FORCES OF JOHORPORT................................................................................ 8
4.1 COMPETITIVE RIVALRY................................................................................................ 8
4.2 THREAT OF SUBSTITUTION.......................................................................................... 9
4.3 BUYER POWER ......................................................................................................... 10
4.4 SUPPLIER POWER..................................................................................................... 11
4.5 THREAT OF NEW ENTRY............................................................................................ 12
5.0 CONCLUSION................................................................................................................... 13
6.0 REFERENCES.................................................................................................................... 14

4. 4
1.0 INTRODUCTION TO JOHOR PORT
Johor port is an integrated multi-purpose port facility which caters cargo for clients across
the country and into neighbouring countries such as Singapore and other regional ports.
Located at the southern eastern tip of Malaysia, Johor Port provides a comprehensive range
of port services such as liquid bulk services, marine services, shipper services and logistics
services.
This report mainly cover a comprehensive analysis of Johor port as well as the
comparison of the structure system of the competitors such as North port, Singapore Port, and
PTP. In this report you will find several analysis such as Strength Weakness Opportunities
Threat (SWOT) analysis, Boston consulting group (BCG) Matrix and Porter Five Forces
analysis.
The research analysis and the outcome study will be use to further ensure that Johor Port
is able to maintain sustainable management as well as ensuring its progress in achieving its
mission which is “To be committed to providing customer-friendly solutions and cost
effective services to our customer” and its vision which is “To become the most efficient and
integrated multi-purpose port in the region”.

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2.0 SWOT ANALYSIS OF JOHOR PORT
2.1 STRENGTH
2.1.1 Largest Palm Oil Storage
Johor port has the world Largest palm oil storage facility over 230, 000 sq.m. As the result of
having the Largest palm oil storage Johor port is able to meet the demands of clients which
demands a large storage facility.
2.1.2 Certified
Johor Port being ISO certified for Quality Management System by SIRIM. Due to this
certification. Johor port get the trust from clients as a guarantee of efficient management and
more other clients will be interested in investing to Johor Port
2.2 WEAKNESS
2.2.1 Lack of skills and knowledge
Johor ports lack skills and knowledge when addressing emergency situation whereby other
ports would be able to get upper hand. Therefore, Johor port is showing a significant drop in
its business. Therefore Johor port must improve their manpower skills .
2.2.2 No more room to expand
There is no more Extension of the port because it has reached its maximum capacity. Due to
the inability to expand, Johor port might lose new potential clients whereby there is a
possibility that they are international customers. This may bring difficulty in Johor Port
image where it will only be seen as a domestic port instead of an international port.

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2.3 OPPORTUNITIES
2.3.1 Been offered Operatorship contract
Johor Port was awarded a four-year operatorship contract by PETRONAS to manage the
operations and logistics for the RAPID project in Pengerang, Johor. This allows Johor Port to
become the catalyst of a new development project which might bring better and recognition
to the establishment.
2.3.2 Johor Port is exploring new business avenues to sustain its business
momentum.
Two new subsidiaries, namely KOTUG Asia Sdn Bhd and Cranetech Global Sdn Bhd, have
recently been established to support its activities in the harbour tug business and the
maintenance and repair of port equipment. This in turn will attract more investment into the
establishment which will further sustain the business particularly in difficult economic times.
2.4 THREATS
2.4.1 The improvement of rival port
PTP’s growth has been organic, driven by enhanced handling capacity and increased
efficiency which, in turn, have attracted greater volume of traffic. Johor port might encounter
steeper competition in becoming the most sought after port for its services.
2.4.2 Other ports have better equipments
New technologies from Singapore port making Johor port service less obsolete. High end
technologies from other port may affect the technological efficiency in Johor port, which will
give better advantages to other competing ports.

7. 7
3.0 BCG MATRIX OF JOHOR PORT
Johor Port’s revenue increased by 2.57% to RM618.3 million in 2015, while PAT fell slightly
2.02% to RM116.48 million. Northport’s revenue increased by 6.3% to RM 622.9 million.
The Johor port handled container volume of 800,524 TEUs, of which local bound containers
accounted for 97% of the total and registered an increase of 5.3% over 2014. While Northport
increase 10.1% in container volume over 2014 to 2.83 million TEUs, although performance
was partly impacted by a 7.5% growth in operating expenditure from RM514.0 million to
RM552.4 million, the segment recorded a profit before tax of RM83.4 million.
(Annual MMC Report 2015, 2015)
Northport is currently upgrading its infrastructure and facilities to cater for more Ultra Large
Vessels and to meet growing market demand. Upgrading works at Wharf 8, which forms part
of the capacity building programme, is progressing well, but because of the size of Johor
Port, it is hard for the company to compete with others like Port of Tanjung Pelepas and
North port of Klang even though it is strategically located at the southern-most tip of
Peninsula Malaysia.(Johor Port, n.d.)(Annual MMC Report 2015, 2015)
Therefore, Johor port is located at dog.

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4.0 PORTER FIVE FORCES OF JOHOR PORT
4.1 COMPETITIVE RIVALRY
Being two ports located in close proximity with one another and sharing the same
hinterland, there is naturally keen competition between Johor Port and PTP. While
competition between business entities is inevitable and even healthy, a destructive rivalry
leading to a ‘competition of attrition’ should be avoided. What more competition involving
high-stake, high-profile infrastructures like ports. The ports share a common shareholder,
Malaysian Mining Corp (MMC), which wholly owns Johor Port and has a 70% stake in PTP.
From MMC’s perspective, the rationalization plan is necessary to avoid a potentially draining
rivalry between the two ports in fighting for cargo.
From the perspectives of port features and facilities, PTP also has a distinct advantage over
Johor Port in handling large vessels. PTP has a draft of up to 19 meters, 10 berths with a total
length of 3.6 km and 27 super post-Panamax cranes.4 Its location on a greensite enables it to
offer a large expanse of over 400 hectares of commercial and free zone, and one of the
region’s largest container yards with a capacity of 154,000 TEU.5 Although Johor Port also
boasts international class facilities and currently serves some 30 MLOs, it has little room for
expansion. Hence, the task of hosting new-generation container vessels is best suited for PTP
which has better infrastructure and features to serve container ships and plenty of room to
expand. The bigger growth of container throughput that PTP has generated in the last five
years (44%) compared to Johor Port (29%), as seen in Table 1, supports the logic of focusing
PTP’s attention to container trade. This is consistent with the law of comparative advantage
of benefiting from specialization.
Bear in mind that Johor Port was built at a time when container vessel sizes and their loads
were small, and have limited features and capacity to host today’s gigantic vessels. It would
be best to leave the handling of increasingly huge container vessels to PTP which has the
features and capacity to host them and the expanse to handle huge container volumes. Johor
Port can then focus on further enhancing its stature in handling bulk cargo such as palm oil,
whose production is expected to increase in the years ahead (Sgouridis, 2003)

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4.2 THREAT OF SUBSTITUTION
Despite various efforts to beef up container handling capacity at Johor Port - for example
through the purchase of cranes and the enhancement of ICT systems - its container growth is
hampered by space constraint. Therein lies one of the most compelling arguments in favour
of the rationalization plan. Increasingly large container ships requiring deep draft and the
kind of facilities which Johor Port cannot provide could well divert their calls to Singapore
Port.
It was reported that approximately 700,000 TEUs of containers were being feedered by sea
annually from Malaysia to Singapore, of which 300,000 TEUs originated from Johor Port and
400,000 TEUs per year were from Port Klang. PTP, which began operations in 2003 and has
since become Malaysia ’s busiest container terminal and one of the world’s fastest growing
container terminals in the world in the last decade, which has an edge over Johor Port in
PasirGudang. PTP has a generous amount of greensites to build new berths and container
yards while Johor Port has very little space to expand its container handling capacity, if at all.
Ports with extra capacity naturally have greater advantage than those with limited or no space
to provide extra capacity, hence the former tend to be able to perform better.
Malaysia’s ports act as gateways to the nation’s economy, facilitating 90% of the country’s
trade. Malaysia boasts of having two ports in the list of the world’s 20 busiest container ports
in terms of throughput volume handled. (Uiversity Technology Malaysia , N.D)

10. 10
4.3 BUYER POWER
With Johor Port’s container operations moving to PTP, container throughput at
PTP will improve, and so will non-container throughput at Johor Port. As Johor Port enjoys
the clientele of some prominent names in container shipping such as Wan Hai, PIL, Gearbulk
and even local stalwart MISC which has strong feeder operations in Johor, the shift of its
container operations to PTP will connectivity. Left with only conventional cargo operations,
Johor Port will be able to focus its resources and utilize them better in handling such cargo.
Johor Port and PTP operate in a dynamic and highly volatile business environment influenced
by so many internal and external factors. In recent years, ports in the region have embarked
on aggressive expansion to serve their users better and in anticipation of growing demand for
shipping services and global seaborne trade. Not only their operators are offering features and
facilities of international standards, they are doing so at very competitive rates. (MMC
Annual report, 2015)

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4.4 SUPPLIER POWER
At the Bulk and Breakbulk Terminal (BBT), new warehouse and an additional
multipurpose wharf are being built. Two new level luffing cranes are expected to begin
operations in May 2015, in addition to new auto grabs of 7 cubic metres and 10 cubic metres
and for new hoppers with higher capacity. The acquisition is strategic as it expands the
presence of JOHOR port business from the south of the peninsular to include the mid-western
coast as well. In line with MMC’s business growth agenda, Johor port has entered into a joint
venture for provision of tugs boat and other marine service. It also collaborating with
PETRONAS on the construction of a container terminal in Tanjung Setapa which will be part
of the refinery and petrochemical integrated development (RAPID) in Pengerang. (MMC
Annual report, 2015)

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4.5 THREAT OF NEW ENTRY
The year 2014 saw a continuation of various efforts to increase our cost
efficiencies in the Port of Tanjung Pelepas (PTP) via comprehensive maintenance and
refurbishment programs. Revenue at PTP increased by 13% to RM 1,021.7 million from RM
905.5 million in 2013. Mainly due to a 12% growth in throughput handled of 8.5 million
TEUs. At the same time, the port’s ability to meet the minimum productivity level for Maersk
Line and MCC Transport. The decline in crued oil prices positively impacted consumables
cost, despite PTP handling 12% more volume compared to the previous year. Supporting its
investment into physical infrastructure, PTP is also placing more emphasis on human capital
development (MMC Annual report, 2015)

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5.0 CONCLUSION
As group members completed doing this assignment, they have gained to understand
more about the structure and the system of management. The principal of management is
vital in every organization to ensure smooth sailing and efficiency in executing and running
an establishment. This can be seen in the analysis of Johor Port as well as comparing it to
other competitor ports.
By doing this assignment, members also get to understand more on how to analyses and
properly apply these analysis mechanism such as SWOT analysis, BCG Matrix and Porter
five forces analysis. And by doing these analysis on a company members get to know about
the progress and ongoing of a company.

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6.0 REFERENCES
Bibliography
MMC Annual report.(2015). MMCAnnualreport.
Sgouridis.(2003). AY 2002/2003 Inception Report.
UiversityTechnologyMalaysia.(N.D). PortCompetition in Malaysia.