Port Klang tariff remains competitive in region, says PKA chief

The Sun

17-06-2025

KUALA LUMPUR: The Port Klang Authority (PKA) today clarified that its tariff rates will remain among the most competitive in the region.
Its general manager, K Subramaniam, said that even after the staggered increases are fully implemented in 2027, Port Klang's tariffs will still be between 5.0 per cent and 185 per cent lower than those of other ASEAN ports.
Refuting claims by several parties regarding the recent tariff revision, Subramaniam said Port Klang's overall cost competitiveness reinforces its strategic role as the preferred logistics and transshipment hub for global logistics and distribution centres.
'In Port Klang's latest tariff revision, a comprehensive benchmarking exercise was conducted against neighbouring and regional ports. Despite the revision, Port Klang's tariff rates will remain among the most competitive in the region.
'The overall cost competitiveness reinforces Port Klang's strategic positioning as the preferred logistics and transshipment hub for global logistics and distribution centres,' said Subramaniam in a statement on Monday (June 16).
He clarified that it was incorrect to assume all container volumes in Port Klang would be subject to the full increase, as this ignores key factors such as phased implementation, free storage periods, and the fact that a significant portion of cargo is transshipment, which is priced differently.
He added that the last tariff review was conducted a decade ago, and storage rates have remained unchanged for nearly six decades.
Subramaniam said that at just RM4 per twenty-foot equivalent unit (TEU), the storage rate has remained unchanged since 1966. This has been a major contributor to yard congestion, as the port has been used as a low-cost, long-term storage option, leading to inefficient use of terminal facilities.
He said the revised charges are aimed at improving cargo turnaround by discouraging long-term storage and easing yard congestion, thereby enhancing operational efficiency.
To this end, Subramaniam noted that port users who move containers within the free storage period would not be affected by the targeted increases.
'The revised rates consider contemporary logistics solutions within the supply chain and support responsible storage usage in the ports, thereby facilitating more productive and efficient operations,' he added.
Far from undermining Malaysia's competitiveness, he said the tariff revision is designed to strengthen Port Klang's position as a regional logistics hub by enabling continued investment in capacity, technology and sustainability. This will ultimately benefit manufacturers, exporters and importers, and advance Malaysia's trade ecosystem.
'The Port Klang tariff revision is a measured and necessary step to ensure long-term service quality, operational efficiency and infrastructure readiness.
'Before the tariff was approved, a comprehensive and detailed study was undertaken. As a result, the quantum of the rate increase was reduced and implemented through a staggered three-year plan,' he said.
In response to concerns that the revision would significantly raise consumer goods prices, PKA clarified that port charges represent only a small fraction of the total cost to consumers.
'Typically, a 20-foot container carrying 20 tonnes of cargo will see an increase in handling charges of just 0.45 sen per kilogram,' he added.