Malaysia’s Port Klang gets clearance to raise tariffs

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WestportsPort Klang of Malaysia has gotten the nod of the Ministry of Transport (MOT) for its Westports and Northport terminals to raise their official tariffs.

“MOT has decided to stagger the implementation in two phases, which is very considerate of them as well,” Ruben Emir Gnanalingam, chief executive officer of terminal operator Westports Holdings Bhd, told Bernama when contacted recently.

He added that Westports Holdings plans to invest further in the latest technology and equipment for its facility following the approval of the tariff hike proposal after years of lobbying.

With this investment, he said Port Klang—ranked the world’s 12th busiest port in 2014—is expected to strengthen its position as one of the top ports in the world.

Ruben said the revision was fair considering that tariffs had not been increased in the past 14 years. He also noted that costs have risen tremendously over the past several years, and it was high time the company got the tariff increase.

“Even with these increases, our published tariffs (are) still extremely competitive vis-a-vis regional ports, especially with regards to local cargo,” he said.

The container tariff revision will be applied in two stages, with an average increase of 15% for each stage.

The revised tariff covers container terminal handling charges for import, export, transshipment, shifting and re-stow, storage charge for containers, and handling charge for heavy lift or uncontainerized cargo.

The operator said the phased implementation is meant to give industry players enough time to adjust to the revisions.

According to reports, the first phase, particularly terminal handling charges, will come into effect from September 1, 2015, while the second phase will be imposed from September 1, 2018.