As part of an overall strategy to further strengthen the growing influence of Port Klang as National Load Centre and a Regional Hub Port, the Ministry of Transport has agreed to the introduction of new incentives for feeder operators linking Port Klang to regional ports.

The incentive scheme developed by Port Klang Authority with the assistance of three privatised terminal operators - Klang Container Terminal, Klang Port Management and Kelang Multi Terminal, is introduced in two phases.

The phase one of the scheme implemented, effective January this year, applies to selected nine feeder operators and two land bridge operators.

The lines, represented by the agents in Malaysia, are China Shipping (Malaysia) Agency Sdn Bhd, EM Shipping Sdn Bhd, Eng Lee International Agency (S) Pte Ltd, Harper Wira Sdn Berhad, LKC Shipping Line Sdn Bhd, Marine Handling Sdn Bhd, Nutrajaya Shipping (M) Sdn Bhd, Perkapalan Dhai Zhun Sdn Bhd and Selatan Agency Company Sdn Bhd.

Meanwhile, international freight forwarders, TS Allied Trans Sdn Bhd and TS Transrail Sdn Bhd, which broke new grounds in feedering rail-mounted traffic between Port Klang and Bangkok, are the two land bridge operators which signed up for the scheme from April 2001.

The eligible operators will enjoy a rebate of RM20 for 20-foot container and RM35 reduction for a forty-footer and also a 10 per cent discount on marine charges such as pilotage and tug boat services by the respective terminals.

Feeder operators contributing transhipment boxes – empties, full container load or less container load - at Port Klang are eligible for the refund at the end of every quarter upon approval by the authority.

“The scheme is given for a year period and can be extended upon expiry of the first year period,” said the assistant general manager (Administration) of Port Klang Authority, Paul Seo.

According to the managing director of Nutrajaya Shipping (M) Sdn Bhd, Dato’ Shaik Ibrahim the company has been regularly handling approximately 200-250 TEUs weekly from Belawan Port in Indonesia.

“The scheme has also allows us to offer competitive rate for local and regional shippers like in Belawan and Jakarta to divert their traffic via Port Klang,” he added.

Besides the rebate scheme, Port Klang Authority will also introduce a volume base incentive scheme effective from 1 July 2001 as part of the second phase of the incentive scheme based on annual throughput. 

The lines are eligible for the refund at the end of the year. With scheme in place Port Klang expects to attract some 100,000 TEUs from the regional market in the first year of implementation.

Orient Express Line, Selatan  Agency Company Sdn Bhd, Sea Consortium and Hub-Line are the lines which have been included under the volume based scheme, or phase two scheme.

Both schemes are exclusively for transhipment containers from principal ports in the region including those in in Sabah and Sarawak, Thailand (Klongtoey and Laem Chabang), Indonesia (Jakarta, Surabaya, Semarang, Belawan, Pekan Baru), Vietnam (Ho Chi Minh), Phillipines (Manila) and India (Calcutta, Madras, Mumbai).

Feeder operators are pleased with the financial incentives to attract more transhipment volume.

“However, the rebates must be followed through with quality operational facilities from the terminals for the feeder operators by providing dedicated feeder terminals or providing priority-berthing service. Otherwise the policy cannot attract feeder to add transhipment volume at Port Klang in the long run said the general manager of Orient Express Lines Limited, Capt. Leslie Reis.