Table of Contents Introduction 2 Background 2 Why bauxite demand from Malaysia suddenly surges 2 The Kuantan bauxite 3 Demand and Supply of Bauxite Handling Service in Kuantan Port 4 Demand of Bauxite Handling Service in Kuantan Port 4 Supply of bauxite handling service in Kuantan Port. 5 Price Elasticity of the Demand and Sales of the Bauxite Handling Service 6 Price elasticity of demand 6 Sales of bauxite handling service 6 Other consideration - pollution 8 Conclusion 8 References 9

Introduction
The purpose of this paper is to study the demand, supply and elasticity of bauxite handling service provided by Kuantan Port Consortium and how the company can benefit from the understanding of the market structure to improve sales and the company’s revenue.
Kuantan Port is a multi-purpose port and operates all-year-round in all-weather condition. Strategically located on the eastern seaboard of Peninsular Malaysia facing the South China Sea, Kuantan Port is the gateway to Asia Pacific Region. Currently, the port is providing a variety of berth facility to cater for various cargo compositions such as multipurpose berth, liquid chemical berth, palm oil berth, mineral oil and container terminal berths. It also provides storage facilities such as warehouses, container yard and storage yards for commodity such as bauxite and iron ores.
The revenue comes mainly from cargoes handling and storage services with 55% of the contribution comes from dry bulk handling, 33% from liquid and palm oil handling and 12% from container handling. Dry bulk handling, particularly the handling of bauxite, has become the main contributor to the revenue and will be the focus in this study.

Figure 1: Bauxite handling service
Background
Why bauxite demand from Malaysia suddenly surges
Bauxite is the main ore for alumina, which is used to produce aluminium.