Lumut Port at 30: Charting Perak’s Global Future

Part 1: A Legacy of Transformation

[2025, July 24] As Lumut Maritime Terminal Sdn Bhd (Lumut Port) approaches its 30th anniversary on July 24, 2025, it stands not merely as a testament to three decades of operation, but as a vibrant narrative of strategic evolution and profound regional impact. Once a facility with simpler beginnings, it has transformed into the largest dry bulk port in Southeast Asia, a journey marked by visionary leadership and an unwavering commitment to excellence.

Lumut Port today is a pivotal hub, strategically located off the Straits of Malacca, a critical artery for global trade. Its growth has been an important catalyst for Perak’s economic development and industrialisation. The Lekir Bulk Terminal (LBT) within Lumut Port is notably the largest dry bulk unloading facility in Southeast Asia, primarily serving Tenaga Nasional Berhad (TNB). This article chronicles Lumut Port’s remarkable transformation, its resilience in navigating global shifts and its ambitious vision for a future unbound, driven by innovation, diversification and a deep commitment to its people and the state.

From Foundations to a New Era

Lumut Port was officially opened on 24 July 1995, conceived as a state port and a catalyst for Perak’s economic growth. Its early years saw a significant focus on land sales within the Lumut Port Industrial Park, a necessary part of its business model to generate revenue for initial infrastructure investment in wharves and warehouses.

The arrival of Dato Mubarak Ali as CEO in March 2015 marked a turning point in the port’s trajectory. He brought with him a diverse professional background, having previously worked in integrated logistics for companies like UPS and Malaysian Airline cargo, and in solid waste management. After identifying significant “room for improvement” and immense untapped potential, Dato Mubarak and his team strategised on updating the administrative processes and diversifying clientele. It basically set the stage for a strategic overhaul.

Under Dato Mubarak Ali’s leadership, Lumut Port underwent a fundamental strategic shift. Historically, the company had been profitable and paid good dividends to shareholders, but more needed to be done by reinvesting in its core business for future growth. A bold decision was made to pivot entirely. “From the time I took over in 2015 until now, we never had any land sales. So it is 100% port revenue,” Dato Mubarak Ali stated. This strategic move demonstrated a clear commitment to the core business of port operations and a long-term vision for sustainable growth, with all acquired land now reserved solely for future expansion. This marked a deliberate evolution from a land-sale-dependent model to a robust, port revenue-driven business.

The philosophy underpinning this transformation is rooted in Dato Mubarak Ali’s personal drive for positive change. He encapsulates his leadership approach by stating, “I’m a person who always like to go into something which I can turn around. So I took the job, and here I am, 10 years later”. This statement highlights the transformation as a deliberate, challenge-driven process, emphasizing the port’s evolution under his guidance.

The absence of direct port management experience, combined with a strong analytical background in industrial engineering, allowed Dato Mubarak Ali to identify inefficiencies and opportunities that might have been overlooked by someone deeply entrenched in traditional port operations. This external, yet highly analytical, perspective was a crucial catalyst for the port’s radical transformation. It demonstrates that sometimes, a fresh pair of eyes, even without direct industry experience, can be more effective in identifying systemic improvements than long-standing internal expertise, especially when coupled with a strong drive for change.

Year	Key Initiative/Milestone	Strategic Impact/Outcome
2015	Dato Mubarak Ali appointed CEO	Shift to 100% port revenue, focus on core business
2015	BSP 1.0 approved & launched	Strategic roadmap for operational excellence
2015	Business Development division created	Proactive customer engagement, volume enhancement
2018	Office renovation (RM5M) & move	Improved staff morale, better working environment
2016	LMT2 concept (clean/dirty cargo)	Diversification of cargo, optimized operations
2016	Land acquisition for LMT2 (115 acres)	Secured future expansion capacity
2016	BSP 2.0 approved (10-year plan)	Long-term strategic development framework
2018	ERP (Pronto) & PMS implementation	Enhanced operational efficiency, data-driven performance
2019	Productivity increase (7k to 12.4k MT/day)	Faster cargo handling, reduced vessel waiting
2019	Vessel turn-around time decrease (60hr to 29hr)	Improved service levels, reduced demurrage costs
2019	Direct Berthing % increase (55% to 83%)	Streamlined operations, better vessel flow
2019	LMT2 development starts	Physical expansion for diversified cargo
2020	Investment Tax Allowance (ITA) obtained	Financial incentive for CAPEX, supported growth
2020	STS shipments & bunkering commence	Expanded service offerings, new revenue streams
2021	BSP 3.0 formulated (integrated into 2.0)	Further diversification, future container services
2023	PoABI partnership formalized (LUMIC)	Global recognition, accelerated development
2024	All data migrated to cloud	Enhanced digital infrastructure, data accessibility
2025	New machinery investment (Hitachi)	Increased productivity, service excellence
2025	LUMIC Masterplan unveiled	Blueprint for global industrial hub
2025	BSP 4.0 formulation begins	Continuous strategic planning for future growth