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In a glaring slip reflecting poor
governance and ineptitude in its
administration, Port Klang Authority
has been slammed by the Ministry of
Transport for its failure to comply
with statutory requirements in its
recent move to revise its port
charges and tariff.
According to industry sources the
Port Authority failed to follow the
process specified under its 1963
by-laws in initiating revision or a
review of its port charges and
rates.
Under the law, the port authority is
required to present its proposal to
the Port Consultative Committee,
constituted under the by-laws.
The Committee is constituted by
members from the Ministry of
Transport, Ministry of International
Trade & Industry, Royal Customs &
Excise Department, port terminal
operators, namely Westport and
Northport, the International
Shipowners Association, Port Klang
Shipping Agents Association,
Malaysian International Chambers of
Commerce & Industry and
representatives from the forwarding,
container hauliers and lorry owners
associations.
After this consultation, the
proposal should be forwarded to the
Ministry of Transport which then
presents it in parliament for
approval. If approved the new
charges and rates will be gazetted
after which it takes the force of
law.
In certain cases, there are
dispensations in the by-law which
allows the Minister to exercise his
ministerial discretion to give
effect to certain proposals becoming
part of the rules and regulations of
the by-law.
Citing increased costs of cargo and
ship handling as well as that its
rates had not been revised for two
decades, PKA, headed by its general
manager, Datin O C Phang argued for
new charges to be imposed and well
as wanted some of the components of
charges merged, or unified.
The port authority proposed to
implement a new tariff that will
levy new charges on handling of
dangerous cargo at Port Klang's
facilities in Westport and
Northport.
The new charges on handling of
dangerous cargo proposed to reduce
the free storage period as well as
increase the handling charges by
more than 50 per cent for import and
export of dangerous cargo and an
increase of 60 per cent for the
handling of dangerous cargo
transshipment via the port.
Shipping lines protested to the
proposal for higher charges for
handling dangerous cargo as only
recently the port authority withdrew
the 50 per cent discount on handling
of transshipment containers to RM230
per 20-ft container and RM345 per
40-foot container.
Shipping lines said with the
proposed new charges on dangerous
cargo handling, the new rates would
go up between 20-60 per cent,
depending on the class of cargo,
from over and above the normal
transshipment charge of RM140 per
20-ft container and RM210 per 40-ft
container.
The new charges on dangerous cargo
were aimed at the estimated 50,000
TEUs handled at the port.
Based on a study carried out by
PricewaterhouseCoopers, the ports
authority also proposed to
consolidate the charges for marine
services, including towage, pilotage
and berthage.
PKA also raised the charges for
supply of fresh water at the port.
The proposal by PKA to raise the and
revised its drew the ire of port
users who chastised the port
authority of not being sensitive to
the needs of the trade.
The International Shipowners'
Association (representing foreign
shipping lines calling at local
ports), Port Klang Shipping Agents
Association, and the Federation of
Malaysian Manufacturers complained
of lack of justification for the
proposed rate increase by the port.
The associations also question the
wisdom (sic) of PKA to raise or
introduce new charges in the wake of
aggressive moves by the Port of
Singapore Authority to slash its
charges, including the introduction
of 50 per cent lower charges for
transshipment cargo.
Despite the complaints, most of
these organizations seemed to have
missed the legality of the proposal
and were preoccupied with the
content and the purpose of the
increase.
Though some of the port user
organizations were consulted by the
port authority, it was not under the
legally constituted port
consultative committee.
According to sources the Ministry of
Transport had questioned the process
adopted by the port authority in
proposing the changes to the port
tariff that is sanctioned by
parliament.
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