Kota Kinabalu: A manufacturers’ group has suggested that the old Kota Kinabalu Port be restored to ease congestion at Sepanggar Port.
Federation of Malaysian Manufacturers (FMM) Sabah branch Chairman James Ha said the Government should carry out the restoration immediately to allow ships to load and unload there.
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He believes this would provide an efficient and effective short-term solution.
“Although the old KK port has been planned to be transformed into a cruise port, it is especially urgent to restore the port to its original role during this emergency (demand exceeding supply) situation.
The Government should enhance the efficiency of operations at Sepanggar Port and its infrastructure, including implementing 24-hour uninterrupted operations, to maximise loading and unloading efficiency.
“Sepanggar Port is currently undergoing expansion and the Government should assist the contractor in resolving technical issues to accelerate the project’s progress.
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“The congestion at Sepanggar Port prevents cargo ships from docking on time, seriously affecting Sabah’s manufacturers and leading to escalating costs.
“Manufacturers also need to increase their raw material inventory from the usual two months to four months to cope with the uncertainties caused by shipping delays,” James said.
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He pointed out that manufacturers are not the only ones facing issues due to shipping delays. Other sectors such as importers, distributors, agents and various industries are also experiencing similar problems.
This is because approximately 90pc of goods in Sabah are imported from other states and countries.
James also revealed that the efficiency issues at Tawau Port are more severe and require immediate action to enhance its infrastructure to support ongoing development needs.
“Due to the severity of congestion issues at ports across the State, FMM suggests that the Government should ‘temporarily’ suspend plans to attract foreign investors, especially large corporations, until the situation improves.
“This is to prevent exacerbating the situation, as increased use of the port for loading and unloading cargo would further congest it. This situation would be unfair to both foreign investors and local entrepreneurs,” he said.
Starting June 15, shipping companies have begun imposing congestion surcharge.
For every 20-foot-long cargo container, there will be an extra charge of RM500 (local)/RM 600 (Import from oversea) and an extra charge of RM1,000 (local) / RM1,200 (import from oversea) for a 40-foot-long cargo container.