Penang Port Sdn Bhd plans to introduce new tariffs in the middle of next year, said chief operating officer Obaid Mansor.Obaid told StarBiz that the proposal to raise port tariffs, comprising largely cargo-handling and ship charges, had been submitted to the regulatory authority, Penang Port Commission (PPC), The Star reports.
The tariffs were last revised in 2003 and implemented in 2007, which saw a 30% hike in handling charges for container cargo to the present rate of RM182 for a 20-ft container and RM273 for 40-ft container.
About 80% of the cargo handled at Penang Port's North Butterworth Container Terminal comprises full container load cargo, which is expected to generate 75% of Penang Port's revenue this year compared with about 65% in 2010.
Both Port Klang and Johor Port have also submitted their proposals to the Transport Ministry to raise tariffs.
Obaid said the tariff review would be timely due to higher oil prices and other operating costs which were eroding Penang Port's profit margins.
“The proposal will be discussed next month by the Penang Port Consultative Committee, comprising stakeholders such as Penang Freight Forwarders Association (PFFA), Penang Importers and Exporters Association, Chambers' of Commerce, Federation of Malaysian Manufacturers, Association of Malaysian Hauliers (northern chapter) and shipping agents.
“We are targeting mid-2012 for the implementation of the new tariffs,” he said.
However, he declined to comment on the quantum of the proposed increase, saying that it would be reasonable.
Obaid said the new tariffs would enable Penang Port to continue providing competitive pricing and quality services, and help improve its position as one of the the top 100 container ports in the world.
Penang Port now ranked 99th, up one notch from the 100th position held a year ago.
From January to September, NBCT handled 886,607 20-ft equivalent units (TEUs) of container, which is an 8% increase from the same period a year ago.
Non-containerised or break-bulk cargo amounted to about 7.6 million tonnes, a drop of 1% previously. This business is expected to contribute 25% of Penang Port's revenue this year compared with about 35% in 2010.
“Although the global economy is weakening, intra-Asian trade is still active, generating the demand for cargo handled at Penang Port,” Obaid said.
Meanwhile, PFFA president Krishnan Chelliah declined to comment on the proposed increase in port tariffs. “Let us know a bit more details about the hike before commenting further,” he said.
On a separate matter, Krishnan said PPC had temporarily lifted the extra charges imposed on loose cargo loads.
He explained that from Oct 1-4, some container freight station operators had raised handling charges for loose cargo loads to RM12 from RM8. Loose cargo loads comprise about 20% of the cargo handled at Penang Port.
“This was done without consulting PFFA and PPC. The latter had ordered the freight station operators to suspend the charges and refund them until discussions are held with PFFA,” he said.
The tariffs were last revised in 2003 and implemented in 2007, which saw a 30% hike in handling charges for container cargo to the present rate of RM182 for a 20-ft container and RM273 for 40-ft container.
About 80% of the cargo handled at Penang Port's North Butterworth Container Terminal comprises full container load cargo, which is expected to generate 75% of Penang Port's revenue this year compared with about 65% in 2010.
Both Port Klang and Johor Port have also submitted their proposals to the Transport Ministry to raise tariffs.
Obaid said the tariff review would be timely due to higher oil prices and other operating costs which were eroding Penang Port's profit margins.
“The proposal will be discussed next month by the Penang Port Consultative Committee, comprising stakeholders such as Penang Freight Forwarders Association (PFFA), Penang Importers and Exporters Association, Chambers' of Commerce, Federation of Malaysian Manufacturers, Association of Malaysian Hauliers (northern chapter) and shipping agents.
“We are targeting mid-2012 for the implementation of the new tariffs,” he said.
However, he declined to comment on the quantum of the proposed increase, saying that it would be reasonable.
Obaid said the new tariffs would enable Penang Port to continue providing competitive pricing and quality services, and help improve its position as one of the the top 100 container ports in the world.
Penang Port now ranked 99th, up one notch from the 100th position held a year ago.
From January to September, NBCT handled 886,607 20-ft equivalent units (TEUs) of container, which is an 8% increase from the same period a year ago.
Non-containerised or break-bulk cargo amounted to about 7.6 million tonnes, a drop of 1% previously. This business is expected to contribute 25% of Penang Port's revenue this year compared with about 35% in 2010.
“Although the global economy is weakening, intra-Asian trade is still active, generating the demand for cargo handled at Penang Port,” Obaid said.
Meanwhile, PFFA president Krishnan Chelliah declined to comment on the proposed increase in port tariffs. “Let us know a bit more details about the hike before commenting further,” he said.
On a separate matter, Krishnan said PPC had temporarily lifted the extra charges imposed on loose cargo loads.
He explained that from Oct 1-4, some container freight station operators had raised handling charges for loose cargo loads to RM12 from RM8. Loose cargo loads comprise about 20% of the cargo handled at Penang Port.
“This was done without consulting PFFA and PPC. The latter had ordered the freight station operators to suspend the charges and refund them until discussions are held with PFFA,” he said.