Kota Kinabalu: Foreign ships may soon be allowed to carry conventional cargo between Malaysian ports as a compromise solution to the opposition by the State's business community towards the Cabotage policy.Haji Roselan Johar Mohamed (pic), who heads the BIMP-EAGA Business Council in Sabah, said the Federal Ministry of Transport is expected to make the announcement soon, if it could help lower costs.
However, this measure does not include the transport containers.
"We are hopeful that the Ministry can further liberalise the carriage of conventional cargo between ports in Malaysia to foreign carriers (which does not include containers in which now even some smaller timber logs are also shipped in overseas)."
"It is likely they will make some concessions for the general cargo for foreign vessels to ship to and from Sabah," he said. Roselan said as a shipping businessman, he found there to be a public misperception of the Cabotage policy.
The local Cabotage policy stipulates that domestic shipping between Malaysian ports should be restricted to Malaysian-owned ships to protect the local shipping industry.
However, in reality foreign vessels are free to land in Malaysian ports carrying cargo from foreign countries but are not permitted to transport domestic cargo from a local port to another local port within Malaysia.
Roselan said it was a misconception that foreign ships were not allowed to land foreign cargo imported by Sabah companies direct at ports in Sabah.
"The Cabotage policy is only for domestic movement between Port Kelang and KK or Sabah ports for that matter. International ships can come.
We never stop that.
"Do you think our KK port can handle a huge container ship from Germany? Can Sabah buy 1,000 containers of cargo to come into KK?
Do you think Sabah has the factories to produce 2,000 containers of goods for export? Can you bring the mother vessel to KK?"
He said container ships do not want to come to Sabah because of the low export volume. So the container ship from Germany would have to discharge at Port Kelang and not come to KK enroute to Singapore and China where the action is. And that is how Malaysian ships take over from Port Kelang to KK.
He said at one time there were 18 shipping firms doing the Port Kelang-KK route but this has dwindled to 11 fighting over competitive freight charges. MISC pulled out because there was no profit to be made.
"Last year Johan Shipping of Sarawak folded up. Why?
Because of the local competition. If we allow all the local shipping firms to die and the foreigners take over, do you think they will not increase freight charges once they have control? What will happen in a case of war?
Who will help us if we have no ships?" he asked.
He said the Cabotage policy only said that all goods shipped between Port Kelang and other Malaysian ports must be carried by Malaysian ships.
Only for domestic trade.
International trade, if you can buy and bring the ship to KK, by all means we don't stop.
We encourage. You can buy cargo from China and bring the whole ship to KK."
He also said shippers ship goods and are not necessarily shipowners, while shipowners are not necessarily shippers. "I do not own any ships anymore, I had two. But now we charter ships which is cheaper than owning them."
