'Don't take forever to solve port woes' call
Published on: Saturday, April 08, 2017
Labuan: The Labuan Chinese Chamber of Commerce (LCCC) urged the Ministry of Transport (MOT) not to take its "own sweet time" in establishing Labuan Ports Authority and getting it operational because Labuan port is "like a sick patient" causing multiple problems to port users daily."The business community and others are eagerly looking forward to the newly-established Port Authority swinging into action with a clear and partial plan, as well as bringing down the escalating port charges," said LCCC Chairman Datuk Wong Kii Yi. He said the increase in charges had undermined Labuan port's attraction despite it having a deep and natural harbour.
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He added that the chamber had been told that Labuan port, which was once viewed as an attractive port of calling by shipping companies, was now looked upon as the most unattractive due to the high cost of bringing ships here, apart from the port and fuel surcharges, and expensive services. "The port itself is in a miserable state and described as dirty, muddy and dangerous to use due to severe congestion."Despite the deteriorating conditions, the MOT seems to be dragging its feet to find solutions and revive Labuan port to its former glory days."During the earlier years when the port was run jointly by the Customs and Marine departments, Wong said ships called here to even discharge goods for Brunei, Miri and Kota Kinabalu.
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"Labuan was like a hub then but now it's the reverse. Containers with personal effects were forwarded to Port Klang via Kota Kinabalu as forwarding companies claim it is much cheaper despite the land haulage charge from here to Kota Kinabalu, and there are cases of personal vehicles air-freighted to Kuala Lumpur."We want all these to be reversed and propose that the Port Authority immediately call for tender for management of Labuan port with costs fair and acceptable to port users, including shipping companies," said Wong.
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"If for any reason the port charges cannot be lowered much, then the solution should be to transfer the Labuan ferry subsidy provided to transport companies to be subsidy for Labuan port. "More would benefit this way as the present ferry subsidy is hardly felt by consumers and others."Wong warned that if the port charges remained high it would be akin to the MOT undermining government efforts to lower the cost of living in Labuan.The present port is managed by Labuan Liberty Port Management Sdn Bhd on a month to month basis after its long-term contract expires. The local company has been operating the port since 2003. Stay up-to-date by following Daily Express’s Telegram channel.
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