Barter boats blocking vessels: Chamber

Labuan: The Labuan Chinese Chamber of Commerce (LCCC) wants the Transport Ministry to immediately determine what is causing the port congestion here and to take measures to rectify situation before the island is hit by another wave of hikes in consumer goods prices.Its Chairman Datuk Wong Kii Yii (pic) said the island is already badly hit by the slump in oil prices and every segment of the economy had reported about a 40 per cent contraction in their business.

"Under such circumstances the natural consequences is a substantial drop in imports and fewer ships calling here.

It is, therefore puzzling against this back-drop shipping companies on the other hand were saying there were introducing a port congestion surcharge for cargoes discharged here."

Several major shipping companies had last month introduced surcharge of RM500 for 20-ft and RM1, 000 for 40-ft containers. The reasons cited were that the port was congested and productivity at the port was poor.

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Wong said what the chamber learned was that the congestion was not triggered by container vessels occupying the berth but barter boats from Philippines landing commodities at the Liberty Port. These vessels took up space and blocked the larger vessels which could not afford delays to wait at anchorage.

"Big ships had to pay demurrage unlike barter boats."

Wong said the Federal Marine Department need to look into this matter seriously and verify whether the complaint is genuine.

He said Liberty Port is a commercial port meant for handling container vessels and this had been the priority.

"Have the rules been bent to allow barter boats to also carry their activities at the commercial port?" asked Wong.

Wong said the Chamber welcomed all forms of economic activities on the island as such would boost local economy.

He proposed that if barter trade is being revived after years of neglect, the Marine Department should rebuild the jetty at the old location near the fisheries complex.

This barter trade jetty collapsed a few years ago after it was left in ruins.

Wong also recalled that though barter trade was active years ago and served as an important "bread and butter" of the local economy it was not encouraged due to today's security concerns.

He said barter vessels called kumpit had to leave berth at sunset to anchorage and return the next day to resume activity.

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Wong said the Chamber was curious whether all these rules have now been changed.

"Higher port charges would end up with consumers finally having to pay more. "The utilities rates have gone up so has IWK and labour costs existing port charges are already said to be high and now with the congestion surcharge it won't be surprising that soon a plate of mee goreng here may cost RM10 instead of RM6," he said.

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