Founding of Westport
From our history lessons, Malaysia’s geographical location is of strategic importance.
It sits right in the middle of the sea route between the East and the West.
We learned that in our history textbooks. Western ships en route to China need a place to stop, and vice versa.
But modern shipping needs more than a strategic location. It requires modern berthing facilities to load and unload containers.
So, being in the right place is only half the formula; being able to provide a fast turnaround is crucial for global shipping companies.
Thus, in 1994, when the government decided to privatise the port in Port Klang, Tan Sri Datuk G. Gnanalingam took up the task.
The man had no port experience, possessing only the bold vision to transform a tiny, overgrown fishing village on Pulau Indah into a highly productive, regional mega-transhipment hub for container shipping.
By then, he was already 49—an age when most people are at the peak of their careers—and in the ’90s, many would already be thinking of retirement on the horizon.
But Tan Sri G secured the funding, and by the time Westports completed its IPO in 2013, the port was handling 7.5 million TEUs. Together with Northport, Port Klang was ranked the 13th busiest port in the world in terms of TEU throughput.
So, how did an outsider manage to achieve what he did?
Let’s look at the trajectory of the man.
Tan Sri G was a marketing man from the British American Tobacco group, rising to become its Marketing Director in 1980.
He attended the Royal Military College from 1960 to 1964 and later graduated from the University of Malaya. In 1983, he attended the Advanced Management Programme at the Harvard Business School in Boston.
He would have rubbed shoulders with the country’s decision-makers in the process.
Despite lacking any port experience, he built a team around him that helped secure the concession for Westports, and in 2000, he roped in Hutchison Port Holdings—the famed port company owned by Hong Kong billionaire Sir Li Ka-shing.
That partnership gave Westports deep industry expertise, an expanded customer network, access to global best practices, and experienced board representation.
By 2000, Westports was handling 1 million TEUs.
Being an outsider, he challenged industry norms and rewarded his staff based on performance.
He famously quipped, “Staff is King, and Customer is Queen”.
Westports has consistently ranked as the most profitable single port operator in Malaysia, with high margins and strong returns on equity. It achieved this without relying heavily on debt or raising secondary equity.
Thus, it became a darling for investors. Institutions such as the EPF, KWAP, PNB, Lembaga Tabung Haji, SOCSO, Urusharta Jamaah Sdn Bhd, and even the Government of Singapore are shareholders.
Twenty-nine years after founding Westports, Tan Sri passed away in 2023.
The swampy fishing village was transformed into a global mega-transhipment hub.
In the process, he created immense value for the port’s employees, its shareholders, and the country.