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Agencies should be responsible if surcharge continues: KKCCCI
Published on: Wednesday, July 17, 2024
Published on: Wed, Jul 17, 2024
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Agencies should be responsible if surcharge continues: KKCCCI
Lui said after implementing timely and effective measures to solve the congestion problem at the Kota Kinabalu Port, shipping companies no longer have any reason to impose congestion surcharges.
Kota Kinabalu: Relevant government agencies such as Sabah Ports Sdn Bhd (SPSB) should be responsible, rather than the relevant operators, if shipping companies continue to impose the surcharge, said Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) President Datuk Michael Lui.

He, nevertheless, thanked Chief Minister Datuk Seri Hajiji Noor for handing over the task of alleviating the port crisis to State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.

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“We believe that the timely and effective measures proposed by Phoong will quickly resolve the congestion problem and ensure smooth and efficient operations, which will benefit the entire port community,” he said.

He was referring to the shipping companies’ recent announcement that the Kota Kinabalu Port Congestion Surcharge of RM500 to RM1,000 will be imposed on all container types from July 16, 2024, on the grounds that the continuous congestion at the Kota Kinabalu Port has caused serious delays in ship turnaround time, affecting the shipping schedule, and thus causing a significant increase in operating costs.

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Lui said after implementing timely and effective measures to solve the congestion problem at the Kota Kinabalu Port, shipping companies no longer have any reason to impose congestion surcharges.

“However, if shipping companies continue to impose surcharges, relevant government agencies such as SPSB should be responsible for it, rather than the relevant operators.

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“After all, the implementation of the surcharge is caused by the inefficiency of port operations,” he said in a statement, Tuesday.

Sapangar Bay Container Port (SBCP) Managing Director Datuk Ng Kiat Min confirmed that Phoong’s timely and effective measures will be implemented as soon as possible.

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Lui believes that the relevant operators will cooperate with SBCP to quickly clear the containers at the terminal to solve the congestion problem.

The proposed measures include improvement of ship turnaround time and freeing up yard space by streamlining container handling processes, bringing in extra manpower to increase productivity so as to optimise the yard to a better position for faster discharge of containers. 

The other measures are temporarily relocating the ro-ro services back to Kota Kinabalu Port so as to allocate more berth space at SBCP.

Lui also welcomed Phoong’s agreement to chair the meeting involving the port, traders and logistics providers to ensure that all relevant parties cooperate to solve the congestion problem.

He hoped the meeting notice would not be issued at the last minute so that stakeholders could arrange to attend.
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