PUTRAJAYA (April 22): 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.

"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 2%, then the charge increase may be gradual and not sudden like today," he said.

He was speaking to the media after the monthly assembly of the MOT and the Raikan Kasih Madani 2025 event here on Tuesday.

Loke said the matter would be refined to ensure all parties could receive fairer charges and that the country's ports remain 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 needs for building capacity development," he said.

Regarding the Federation of Malaysian Manufacturers' (FMM) call for the government to delay the implementation of the proposed 30% increase in port tariffs, especially for container handling and storage, Loke said the Port Klang Authority and the Johor Port Authority 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% in 2015 and another 15% 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% increase this time will be implemented in phases over three years, not all at once, but will increase by 15% in the first phase, 10% (in the second phase), and the third phase (5%)," he said.

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

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

Read also:
FMM: Delay proposed 30% port tariff hikes

Uploaded by Tham Yek Lee