Labuan gets new port operator
Published on: Saturday, December 14, 2019
By: Sohan Das
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LABUAN: A Kuala Lumpur-based company has been appointed as the new operator of the Labuan Liberty Port under the Request for Proposals (RVPs) called by the Ministry of Transport last July.

Long-serving locally incorporated company – Labuan Liberty Port Management Sdn Bhd (LLPM) - was the second best choice in the bid, according to reliable industry sources.

Member of Parliament Datuk Rozman Isli (pic), who is also a member of the Labuan Port Authority (LPA), when contacted, declined to say much except that “it is appropriate for the Chairman of LPA to make the announcement.” 

He said as Labuan MP he had proposed during the presentation by the successful bidder for a four-point term to be included to ensure Labuan interests are protected. 

The four points were: 

l No retrenchment of any staff within the next three years;

l No transfer of business units of the group within a year;

l Local vendors who had been providing services, including rental of machinery, must be continued; and

l The new successful company’s pledge to comply with the points be included in the contract.

The present LPA Chairman is DAP’s Kota Kinabalu Member of Parliament Chan Foong Hin who took ever the post from MCA MP from Johor, Datuk Wee Jeck Seng. 

When LPA was established, the Bintulu Port Authority had channelled RM6 million as administrative expenses.

LLPM had been managing the port since 1998 and even although on short-term contracts, it had operated the port well and had a good record except for some hiccups such as port congestion arising out of rice shipment resulting in port surcharges, but the problem was quickly reserved. It was also strong in carrying out corporate social responsibilities.

Last September, Transport Minister Anthony Loke Siew Fook, when visiting the island, said the potential of the port would be maximised by turning Labuan Port into a container port and transhipment hub for commodities. 

He said new tariffs would be regulated early next year, adding that the port had been implementing unregulated tariffs, which led to complications.

For the long-term, a new integrated port had been proposed under the 9th Malaysia Plan and it was also included in the Labuan Development Blueprint 2020.


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