Latest news with #PortKlangAuthority
New Straits Times
3 days ago
- Business
- New Straits Times
Ports, logistics sector brace for cost impact of US tariff
KUALA LUMPUR: A steeper 19 per cent United States tariff on Malaysian goods, compared with 10 per cent for Singapore, could raise export costs and slow the movement of certain commodities through Malaysia's trade routes, industry players said. Port Klang Authority general manager Captain K. Subramaniam said the higher tariff may place added cost pressures on exporters and reduce trade volumes for commodities routed via Malaysia. However, he said the overall impact on Port Klang's competitiveness is expected to be measured, as the port primarily serves as a transshipment and regional hub rather than a major exporter of US-bound cargo. "Port Klang expects to remain buoyant on the back of strong intra-Asia trade and robust shipping connectivity. "Its competitiveness is anchored not only in tariff considerations but also in its strategic location, cost-efficiency, growing terminal capacity, and comprehensive logistics support," he told Business Times. To retain and grow transshipment volumes, he said Malaysia, particularly Port Klang, is focusing on several key strategies to enhance efficiency and competitiveness. He added that ongoing terminal upgrades and future expansions, including the Westports 2 development, are aimed at increasing capacity and improving turnaround times. The longer-term port capacity expansion plan also includes the Carey Island Port project to cater for future growth. Additionally, Subramaniam said that in terms of digitalisation and trade facilitation, terminal systems are constantly upgraded, adopting the latest digital technologies to ensure speedy and secure data transfer for more efficient supply chain management. On cost competitiveness, he said ports in Malaysia offer top-notch port, logistics, and value-added services at competitive rates, appealing to global shipping lines and logistics companies. Meanwhile, Federation of Malaysian Freight Forwarders president Datuk Dr Tony Chia Han Teun said the recent tariff changes announced by the US raise significant concerns for Malaysia's trade competitiveness and the logistics sector. He added that this differential could potentially divert transshipment and direct export volumes from Malaysian ports to Singapore, especially for high-value goods where even a few percentage points make a commercial difference. "Malaysia has long served as a strategic hub in regional supply chains, and any tariff disadvantage may encourage multinationals and logistics planners to reroute cargo flows. "This could impact not only our port throughput but also the broader ecosystem, including freight forwarding, warehousing, and value-added logistics services," he said. Chia urged the relevant authorities to engage in dialogue with their US counterparts to clarify the rationale behind the tariff differential and explore avenues for mitigation. "At the same time, we must intensify efforts to enhance port efficiency, reduce last-mile costs, and leverage free trade agreements to maintain Malaysia's position as a competitive and attractive logistics gateway in Asean," he added. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the newly imposed 19 per cent tariff on Malaysian exports to the US is reasonable and will not threaten the country's competitiveness. He added that although Malaysia had hoped for a lower tariff rate, the outcome of the negotiations was fair, as it was achieved without compromising the nation's core policies or sovereignty.
Malay Mail
17-06-2025
- Business
- Malay Mail
Port Klang Authority defends tariff revision, says move curbs yard congestion, boosts efficiency
KUALA LUMPUR, June 17 — The Port Klang Authority (PKA) yesterday 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 yesterday. 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. — Bernama
The Sun
17-06-2025
- Business
- The Sun
Port Klang tariffs remain competitive, says PKA
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.
The Sun
17-06-2025
- Business
- The Sun
Port Klang tariff remains competitive in region, says PKA chief
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.
The Star
16-06-2025
- Business
- The Star
Port Klang tariffs remain competitive regionally, says PKA chief
KUALA LUMPUR: The Port Klang Authority (PKA) on Monday (June 16) clarified that its tariff rates will remain among the most competitive in the region. 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% and 185% 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 Monday. 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 kilogramme," he added. - Bernama
