MEETING BETWEEN CONSUL GENERAL AND MELISSA POON, MANAGING DIRECTOR MISC AGENCIES (AUSTRALIA) PTY LTD

MEETING BETWEEN CONSUL GENERAL AND MELISSA POON, MANAGING DIRECTOR MISC AGENCIES (AUSTRALIA) PTY LTD

Dr Mohammad Rameez was invited by Ms Melissa Poon, Managing Director of MISC Agencies (Australia) Pty Ltd to its head office at Albert Square, Melbourne on Thursday, 9 February 2012. The said meeting lasted for about an hour and was to brief Dr Rameez on the decision by MISC to close down its liner business(container shipping) world-wide. In view of MISC Agencies Australia focus in supporting MISC’s liner business only, MISC Agencies Australia Board has decided to close down all its offices and business in Australia.    

MISC Agencies Australia which represents MISC Berhad’s liner business entered the Australian trade in 1977, and had since then grown as one of the leading carrier in the Australia to Southeast Asia/Gulf trade route including the handling of halal food transportation. It has five offices in Australia with the HQ located in Melbourne. The other four offices are in Brisbane, Sydney, Adelaide, and Fremantle (Western Australia).

The MISC liner business in Australia is supported by two loops with 8 ships operation and partnership with OOCL, PIL and MOL (AAA consortium). One loop sails from Port Klang-Singapore-Fremantle-Melbourne-Adelaide-Fremantle-Singapore-Port Klang, and the other loop sails from Singapore-Brisbane-Sydney-Melbourne-Singapore. MISC deployed three container ships or vessels named Bunga Pelangi, Bunga Raya Satu and Bunga Raya Dua.

The closing of the MISC liner business worldwide is related to rapid change which leads to investments on larger vessels in order to maximise economies of scale. The liner industry is plagued by over-capacity and liner operators are struggling to stay profitable under depressed freight rate environment. In addition, other big liner giants like Maersk Line (Denmark) and STX Pan Ocean (Korea) are hit by the world market conditions. This was as a result of the falling freight rates and overcapacity (supply more than demand). MISC has also claimed that it had lost USD789 million on the liner business in the past three years.

The freight charges to and from Australia had experienced steep decline in recent years. The strong appreciation of the Aussie Dollar making exports more expensive reduced demand for Aussie products. The adverse weather condition led to flooding (Queensland in 2011) and drought in Western Australia (2011), and the industrial strikes at Australian Ports had affected Australian importers, exporters and also MISC liner business as well. The decision to exit may also be as a result to concentrate on the more profitable vessels.  To quote CEO of MISC, Datuk Nasarudin Md Idris (in a press statement dated 24/11/2011):-  “MISC focus in recent years has been on providing maritime and transportation solutions for the energy sector, and thus, it is only natural that the bulk of our resources are dedicated towards growing our energy based business segments…”.

It is a regret to note on the closure of MISC offices in Australia, but as for the Consulate General Office in Melbourne, we will deeply miss the cooperation thus far extended by Melissa and her officers.  We also wish Melissa and her family all the best in their future endeavours.

Dr Rameez and Melissa Poon