Transport Ministry looking at a more transparent mechanism on port charges, says Loke

The Star

22-04-2025

PUTRAJAYA: The Transport Ministry is studying a more structured mechanism for port charges to ensure the sustainability of the country's ports as well as a balance between market needs and capacity development.
Minister Anthony Loke (pic) said the current charge review is reportedly inconsistent and not transparent enough.
"So we want to create a more transparent and structured system where there is a periodic review ... of the charges annually, perhaps according to a lower formula.
"For example, if there is an increase in the CPI (consumer price index) (and) let's say the annual inflation rate is 2%, then the charge increase may be gradual and not sudden like (it is at present)," he told reporters after the ministry's monthly assembly and the Raikan Kasih Madani 2025 event here on Tuesday (April 22).
Loke said this was to ensure that all parties receive fairer charges and 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, (so) of course they will not invest to increase capacity.
"We have to balance the needs of the market with the need (to build capacity)," he added.
On a call by the Federation of Malaysian Manufacturers (FMM) 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 (PKA) and the Johor Port Authority (JPA) had not submitted any documents for final approval or gazette.
Loke explained that the relevant 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 imposed at will," he said.
According to Loke, the last review was carried out 10 years ago through two phases, 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 and 5% in the third," he said.
On March 8, Bernama reported that FMM asked the government to postpone the implementation of the proposed 30% increase in port tariffs, especially for container handling and storage.
It said the increase would have major implications on the cost of doing business for manufacturers and transport companies. – Bernama