Malaysia’s Port Klang Authority has moved by one month the increase in the port’s container tariff from the original September to October this year.
The first phase of the revised container tariff at Port Klang will take effect on October 1 instead of September 1, 2015, according to terminal operator Westports Holdings Bhd.
In a filing to Bursa Malaysia late last week, Westports said it received a letter from the authority notifying it about the date change, said a report by Malaysian state news agency Bernama.
“All other details of the (previous) announcement remain unchanged,” the operator said.
In an earlier announcement on August 6, Westports said the container tariff revision, which has been approved by the Ministry of Transport, will be implemented in two stages, with an average increase of 15% for each stage.
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 this year, while the second phase will be imposed from late 2018.
The terminal operator said the tariff revision is crucial to ensure the future growth of Port Klang, which has always been supply-driven on terminal facilities and expansion.
“The revised tariff covers many components and the phased implementation is to ensure that sufficient notice has been given to industry players to realign their processes,” it said.
The revised tariff includes container terminal handling charges for import, export, transhipment, shifting and re-stow, storage charge for container, and handling charge for heavy lift or uncontainerized cargo, it added.
Ruben Emir Gnanalingam, chief executive officer of Westports, told Bernama recently that the company 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 is 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 is 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.
Photo courtesy of Westports
