[2025, May 12] Lumut Port, officially known as Lumut Maritime Terminal Sdn Bhd, has come a long way since its inception in 1995. Moving on with the times, a modest port facility in Kampung Acheh, Lumut has evolved into a thriving maritime hub, thanks to a strategic plan under the leadership of CEO Dato’ Mubarak Ali Gulam Rasul and his management team. Today, Lumut Port stands as a testament to resilience, innovation and transformation.
When Lumut Port was officially opened on 24 July 1995 by Malaysia’s then-Prime Minister, Tun Dr. Mahathir Mohamad, it was a modest facility with limited infrastructure. Initially, the port relied heavily on land sales to fund its operations and development. While this strategy provided short-term financial stability, it left little room for long-term growth. By 2015, when Dato’ Mubarak Ali took the helm, Lumut Port was struggling with outdated technology, low staff morale and stagnant growth.
Dato’ Mubarak Ali first joined Lumut Port in 2015, he recognized that although the foundational infrastructure was in place, significant improvements were needed to unlock its full potential. The port was operating with outdated systems, including third-party email platforms and manual processes, while its aging facilities struggled to meet modern demands. Productivity levels were low, and vessel turnaround times stretched to weeks, creating bottlenecks in operations. His team quickly identified these challenges and implemented strategic streamlining initiatives to transform the port’s efficiency.
Going Back to the Drawing Board
Upon coming on board, Dato Mubarak Ali’s first priority was to strengthen, enhance, and add value to the Business Plan (BSP) 1.0, which was initially mooted and developed by the previous management.
Approved by the Board in 2015, BSP 1.0 focused on three key areas: productivity, infrastructure and service levels. The main objective of the plan was to modernize operations, improve overall efficiency and position Lumut Port as a competitive and progressive player in the maritime industry.
One of the first steps was to invest in state-of-the-art machinery and technology. The port’s productivity, which had stagnated at 180-200 tonnes per hour, was significantly improved. Vessel turnaround times were reduced and customer satisfaction increased.
“We didn’t just want to catch up with other ports; we wanted to set new standards,” says Dato’ Mubarak Ali.
Another critical aspect of the transformation was the shift from land sales to port revenue as the core business model.
“In the early years, land sales accounted for a significant portion of our revenue. But we knew that to grow sustainably, we had to focus on our core business—the port,” explains Dato’ Mubarak Ali. This shift allowed Lumut Port to reinvest in its infrastructure and expand its operations.
Key Milestones: From Coal to Diversified Cargo
A defining milestone in Lumut Port’s evolution was the strategic diversification of its cargo operations. Lumut Port’s initial revenue was dominated by its Lekir Bulk Terminal (LBT), which contributed 70% of total earnings through coal exports for Tenaga Nasional Berhad (TNB). However, reliance on a single commodity posed long-term risks, prompting a strategic shift toward diversification.
Under Dato’ Mubarak Ali’s leadership, the focus expanded to the Lumut Maritime Terminal (LMT), unlocking new growth opportunities. LMT began handling bulk commodities like white cement, silica sand and salt, marking the first phase of diversification. The upcoming LMT2 and LMT3 developments will further transform the port’s capabilities, enabling it to process different products, including clean cargo, liquid cargo, edible products and fertilizers, thereby solidifying Lumut’s role as a multipurpose maritime hub.
A key priority was reducing the port’s reliance on coal as its primary revenue source. Dato’ Mubarak Ali and his leadership team worked to diversify operations, introducing new services and tailored solutions to meet the evolving needs of customers. This shift not only strengthened the port’s financial stability but also enhanced its competitive edge in the maritime industry. Today, Lumut Port stands as a more versatile and customer-centric hub, capable of delivering customised logistics solutions that drive long-term growth.
The port also expanded its infrastructure, including the extension of its main berth and the acquisition of additional land for future development. These investments have positioned Lumut Port as a key player in Malaysia’s maritime industry, capable of handling large volumes of cargo efficiently and reliably.
Today, Lumut Port is transformed. With a workforce of 300 employees and a commitment to continuous improvement, the port is well-positioned for future growth. Dato’ Mubarak Ali’s vision for Lumut Port extends beyond its current success.
“Our goal is to make Lumut Port a RM1 billion company by 2026,” he says. “But more importantly, we want to contribute to the growth of Perak and make it one of Malaysia’s top three states in terms of GDP.”
The transformation of Lumut Port is a story of resilience, innovation and leadership. From its early establishment to its current success, Lumut Port has proven that with the right strategy and vision, the port has found a more solid footing amongst its clientele. As the port continues to grow and evolve, it remains a shining example of what can be achieved through the determination and forward-thinking management team.
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