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Port operating companies and
several port authorities in the country are not
in favour of the move by the Ministry of
Transport to set up the Malaysian Ports
Commission.
Several port operating companies and regulatory
agencies contacted said they were opposed to the
move and had made known their views to the
Ministry which despite the opposition is
determined to proceed with the MPC.
The port operators were commenting on a recent
announcement by the Minister of Transport
recently that government is setting up the
Malaysia Ports Commission (MPC) to bring all
federal port authorities under one umbrella.
The Minister, Datuk Seri Chan King Choy said the
setting up of the MPC would pave the way for
funds from all local ports to be channelled into
strategic development projects.
It is understood that the Ministry of Transport,
which had planned to set up the ports commission
in 2000, has reactivated the idea and is pushing
ahead to form the Commission despite objections
from which various port authorities as well as
private port operating companies.
Port sources said it was somewhat galling to
hear the Minister saying that the funds from all
the port authorities would be channelled into
strategic developments projects.
“At the moment a so-called strategic development
project that has gone awry is the development of
the Port Klang Free Zone on Pulau Indah and has
become a financial liability for Port Klang
Authority,” said a source.
According to industry sources the Free Zone
located at the hinterland of Westport is having
difficulty attracting users to its 512 standard
size warehouses that have been built neither
meeting industry requirements nor warehouse
building specifications.
Sources added the Jaffa International of Dubai
which manages the Free Zone, has been burdened
with the task of marketing the Free Zone which
is owned by Port Klang Authority.
“The move to set up the MPC paving the way for
funds from all the port authorities appears to
be clearly aimed at bailing out Port Klang
Authority, which faces severe financial burden
arising out its commitment on the development of
the Port Klang Free Zone,” said a port source.
PKA bought 999.5 acres of land in Pulau Indah to
be developed in a free zone distripark from
Wijaya Baru Global Bhd for RM1.09 billion, which
is payable in seven installments beginning this
year.
In addition the port authority, a regulatory
agency, committed itself to further RM1.82
billion for development of the zone.
It is understood by taking over the assets of
the various port authorities the Malaysian Ports
Commission would be richer by more than RM2
billion from which the liabilities of PKA are
expected to be defrayed.
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