MOT TO STUDY MORE TRANSPARENT MECHANISM ON PORT CHARGES - LOKE

PUTRAJAYA, April 22 (Bernama) -- The Ministry of Transport (MOT) is studying a more structured mechanism regarding port charges to ensure the sustainability of the country's ports as well as a balance between market needs and capacity development.

Transport Minister Anthony Loke Siew Fook said the current charge review is allegedly inconsistent and not transparent.

"So we want to create a more transparent and structured system where there is a periodic review, meaning there is a review of the charges annually, perhaps according to a lower formula.

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"For example, if there is an increase in the CPI (Consumer Price Index), what is the annual inflation rate, let's say the annual inflation rate is two per cent, then the charge increase may be gradual and not sudden like today," he said.

He told the media after the monthly assembly of the Ministry of Transport (MOT) and the Raikan Kasih MADANI 2025 event, here today.

Loke said the matter would be refined to ensure that all parties could receive fairer charges and the country's ports remained competitive.

"If we do not look at the increase or reassessment of these charges, the revenue of port operators will decrease, of course they will not invest to increase capacity.

"So we have to balance between the needs of the market and also the needs of building capacity development," he said.

Regarding the Federation of Malaysian Manufacturers (FMM)’s call for the government to delay the implementation of the proposed 30 per cent increase in port tariffs, especially for container handling and storage, Loke said the Port Klang Authority (PKA) and the Johor Port Authority (JPA) had not submitted any documents for final approval or gazette.

Loke explained that the Port Authority would assess these charges from time to time when there is a request from operators and not according to a specific schedule.

"The increase in port charges is a tariff that is strictly controlled by the Port Authority, not at will," he said.

According to him, the last review was carried out 10 years ago through two phases, namely 15 per cent in 2015 and another 15 per cent in 2018.

"Last year we had a process to reassess the charge. The charge went through various consultation processes with stakeholders, through a consultative committee at the port level.

"The proposal for a 30 per cent increase this time will be implemented in phases over three years, not all at once, but will increase by 15 per cent in the first phase, 10 per cent (second phase) and the third phase (five per cent)," he said.

On March 8, Bernama reported that the FMM) requested that the government postpone the implementation of the proposed 30 per cent increase in port tariffs, especially for container handling and storage.

This is because the increase will have major implications on the cost of doing business for manufacturers and transport companies.

-- BERNAMA