The Ministry of Entrepreneur Development would not hesitate to withdraw haulage permits given to the 50-odd new companies if they fail to utilize the permits within a stipulated time.

Issuing the warning, its Minister Datuk Nazri Tan Sri Abdul Aziz, said the Commercial Vehicle Licensing Board is monitoring the utilization of the permits by the new companies and “if is found that the companies have no valid reason to utilize them, then the permits would cancelled.”

The Minister issued the warning at the launching of a yet another new haulage company – M Zain Haulage Services Sdn Bhd – in Shah Alam last week.

Nazri also called on the newly licensed operators to form an association, or join the Container Hauliers Association of Malaysia (CHAM) to voice out on any issues or problems affecting them.

He said the large number of new hauliers have been licensed to create a more competitive environment as well as to respond to the growing importance of Port Klang as major port in the region.

Earlier in his speech, the chairman of M Zain Haulage Services, Tengku Suleiman Shah Al-haj said the company has so far invested about RM10 million in acquisition of the haulage equipment.

The company has put on the road the first batch of 10 prime movers and 70 trailers while the second batch of the same complement is expected to hit the road by September.

The company, which had been issued with 30 permits for prime movers, hopes to utilize the remaining number of permits by the end of the year if the market condition permits.

Meanwhile, at the same event the M Zain group also signed a MOU with UPS-Fritz to set up a joint venture between M Zain Distribution Services Sdn Bhd and Fritz Logistics Sdn Bhd.