The Key Challenges Of The Organizational Structures Commerce Essay

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The organizational structure comprises a Chairman, Board of Directors, a Managing Director as a Chief Executive Officer and supported by a Chief Operating Officer and Senior Managers and Managers heading the various divisions.

SPSB currently operates eight (8) ports, namely the Sapangar Bay Container Port (SBCP), Kota Kinabalu (KK) Port, Sandakan Port, Tawau port, Lahad Datu Port, Kudat Port, Kunak Port and Sapangar Bay Oil terminal. The eight ports form a network, which serve the three major areas in Sabah - the SBCP, which is a container and general cargo port, KK port and the Sapangar Bay oil terminal, serves the entire West coast. The Sandakan Port serves the North East Coast while Tawau serves the South-East coast of Sabah and both these ports are mainly involved in palm oil shipments. The minor ports of Kudat and Lahad Datu support the North and South-East coasts.

SPSB has been organized into various functional departments. Although the ports are spread geographically throughout Sabah, management control, however, is exercised from the Headquarters located at Sapangar Bay to which all the ports report.

SPSB is currently manned by a total of 900 staff. The majority of the staff (about 82%) are located in the operations divisions (throughout the ports in the state).

The management of the Authority is headed by the Managing Director and assisted by the Chief Operating Officer.. The organizational chart of the SPSB management is given as per Figure 1. below:

Organization Chart

Function and Responsibilities

SPSB was established for the following functions and responsibilities: -

To provide and maintain adequate, efficient port services and facilities;

To co-ordinate all activities of or within Sabah port;

To promote the use, improvement and development of the port; and

To execute such works as may be necessary in respect of the Sabah Ports Authority Enactment 1967 (repealed and replaced in 1981).

Mission and Vision

SPSB's mission and vision are as follows:


"To be one of the most efficient port operators in Malaysia that is capable of continuously meeting its customers' needs while providing a fair return to share holders".


"To be of the most customer focused, competitive, efficient and environmentally responsible port operators in the BIMP-EAGA region that can effectively contribute to the industrialisation of Sabah by 2020".

In pursuit of this vision, SPSB is committed to:

providing a secure, conducive and attractive work environment that recognizes merit and loyalty of its employees;

meeting and exceeding the expectations of port users in the delivery of goods and services;

earning a fair return for its shareholders through its core business and related businesses through diversification; and

stimulating growth and creating opportunities for the well being of the people, state and nation.


At SPSB, the relationship between management and employees is reasonably good, the organization expect employees to remain with it throughout their career.

Occasionally, top management and employees with their families will meet during a get-together festivals like family days, Labour Days, and Port Day Celebrations which falls on 1st September every year. Teamwork is seen as a contributing factor for solving some problems.

Business Operations

SPSB has been seen as a major expansion of activities in Sabah, notwithstanding the continuance of mid-stream anchorage operations. It has also been responsible for a radical shift in port operations towards alongside cargo handling which has brought about greater operational efficiency, safety and reliability and allowed the ports to adopt modern cargo handling methods that include roll-on roll-off and, most importantly, containerization.

Sabah Ports are opened for operations 24 hours daily the whole year round. The ports operate three shifts daily through the following shifts system;

1st shift - 0730 to 1530 hours

2nd shift - 1330 to 2330 hours

3rd shift - 2330 to 0730 hours

Financial Performance

In 2007, SPSB operationally handled a total cargo throughput of 29.2 million tones as compared to 28.1 million tones in 2006. This marked an increased of 4.0 %. As a result, the financial performance has been encouraging which recorded revenue of RM187.5 million in 2007 as compared to RM157.9 million in 2006, an creased of 19 %.


Kota Kinabalu Port is one of Sabah's earliest and main ports. It used to handle a variety of cargo. But today, Sapangar Port has taken over the major port role, and thus Kota Kinabalu Port only handles non-containerized cargo such as general cargo and dry bulk.

The actual day-to-day management and operation of Kota Kinabalu port is the responsibility of the designated Port Manager. All major activities within the port are carried out by the port staffs with the exception of stevedoring, which is carried out by a contractor.

The organizational chart of the Kota Kinabalu port management is given as per Figure 2. below:

Facilities feature:

The port has 12 berths giving a total berth length of 1412 metres. Operational methods are broadly similar in all the SPSB ports, with vessels being handled on a "first come first served basis". Berths are allocated after taking account of such factors as vessel size and draft, and the suitability of the berth for the type of cargo to be handled.

12 berths (5-10 meter draft), maximum capacity - 16,000 DWT.

14,850 meter square covered storage;

26,000 meter square open storage.

Ports Revenue

For performance of its activities, SPSB is empowered to collect dues or/and charges from vessels berthing at wharves and stevedoring activities from all the seven ports. SPSB also imposes charges on importers and exporters for the handling and storing of cargoes and. These revenues can be categorized as operating and non-operating income. Operating income includes those charges mentioned above, property rental and fines on wharf damages. Non-operating income includes interest on fixed deposits and staff loans and other miscellaneous income. The revenues collected are used to meet operating expenditure and for the development and maintenance of the ports and facilities.

Types of Revenue From Port Operations

SPSB's revenue comes from two main sources namely Account Vessel and Account Shipper and Consignee.

Account Vessels

Main types of revenues from Account Vessel are made up of the following:

- Port Dues on vessels entering port limits where every vessel entering a port of the Authority and for a maximum stay therein of thirty days is charged RM0.10 per Gross Registered Tonnage (GRT) (subject to a minimum payment of RM10.00. Vessel may also opt to pay annual dues at RM1.00 per port per GRT or RM6.00 for all the ports of the Authority per GRT.

- Wharfage charges on cargo loaded or discharged at the Authority's wharves at various charges as per Tariff Item No. 3 (1)(2) and (3).

- General Port Charge at RM0.70 per tonne or part thereof for cargo shipped or discharged by a vessel either at anchor or a private jetty.

- Charges for passengers at RM3.00 per adults and RM1.50 per child under 12 years of age embarking or disembarking from vessels berthed at wharves.

- Berthing or unberthing charges for shore labour utilised at the wharves at either RM35.00, RM70.00 or RM140.00 per operation depending on the overall in length of the vessel and time period of operation.

- Stevedore charges according to types of cargo (conventional, palletised or containerised) discharged from or loaded onto a vessel alongside the wharves at various charges as per Tariff Item No. 9 (1)(2) and (3).

- Additional charges for vessel ordering work outside normal working hours, on Sundays or Public Holidays as per Tariff Item No. 13.

- Container handling charges at a rate ranging between RM200 to RM495 per container depending on the length (20 feet or 40 feet) and types of container (full container load or less container load).

- Container storage charges at a rate ranging between RM3 to RM24 per container also depending on the length and types of container.

Other charges for Account Vessel include charges for labour ordered but not utilised, late labour fee, labour cancellation fee, fresh water supply, and charge for strapping cargo onto pallets.

Account Shipper and Consignee

Main types of revenues from Account Shipper and Consignee are made up of the following:

- Handling charges on import/export cargo at RM4.50 per tonne or part thereof if deliver directly or RM9.00 per tonne or part thereof if store at transit sheds/warehouses before effecting delivery.

- Storage Rent on Import/Export Cargo, after the three-day free storage, at a various rates between RM1.50 at the fourth day and RM10.00 at the tenth day, and thereafter RM7.50 per subsequent week.

- General Port Charge at RM0.60 per tonne or part thereof for cargo shipped or discharged by vessel at anchor or at private jetty.

- Reception/Delivery Charges Outside Normal Working Hours at RM30.00 per hour or part thereof for a consignee or shipper requiring delivery or reception from or to a transit or warehouse area outside the normal delivery or reception hours.