Port Klang tariff remains competitive in region, says PKA chief
Its general manager, K Subramaniam, said that even after the staggered increases are fully implemented in 2027, Port Klang's tariffs will still be between 5.0 per cent and 185 per cent lower than those of other ASEAN ports.
Refuting claims by several parties regarding the recent tariff revision, Subramaniam said Port Klang's overall cost competitiveness reinforces its strategic role as the preferred logistics and transshipment hub for global logistics and distribution centres.
'In Port Klang's latest tariff revision, a comprehensive benchmarking exercise was conducted against neighbouring and regional ports. Despite the revision, Port Klang's tariff rates will remain among the most competitive in the region.
'The overall cost competitiveness reinforces Port Klang's strategic positioning as the preferred logistics and transshipment hub for global logistics and distribution centres,' said Subramaniam in a statement on Monday (June 16).
He clarified that it was incorrect to assume all container volumes in Port Klang would be subject to the full increase, as this ignores key factors such as phased implementation, free storage periods, and the fact that a significant portion of cargo is transshipment, which is priced differently.
He added that the last tariff review was conducted a decade ago, and storage rates have remained unchanged for nearly six decades.
Subramaniam said that at just RM4 per twenty-foot equivalent unit (TEU), the storage rate has remained unchanged since 1966. This has been a major contributor to yard congestion, as the port has been used as a low-cost, long-term storage option, leading to inefficient use of terminal facilities.
He said the revised charges are aimed at improving cargo turnaround by discouraging long-term storage and easing yard congestion, thereby enhancing operational efficiency.
To this end, Subramaniam noted that port users who move containers within the free storage period would not be affected by the targeted increases.
'The revised rates consider contemporary logistics solutions within the supply chain and support responsible storage usage in the ports, thereby facilitating more productive and efficient operations,' he added.
Far from undermining Malaysia's competitiveness, he said the tariff revision is designed to strengthen Port Klang's position as a regional logistics hub by enabling continued investment in capacity, technology and sustainability. This will ultimately benefit manufacturers, exporters and importers, and advance Malaysia's trade ecosystem.
'The Port Klang tariff revision is a measured and necessary step to ensure long-term service quality, operational efficiency and infrastructure readiness.
'Before the tariff was approved, a comprehensive and detailed study was undertaken. As a result, the quantum of the rate increase was reduced and implemented through a staggered three-year plan,' he said.
In response to concerns that the revision would significantly raise consumer goods prices, PKA clarified that port charges represent only a small fraction of the total cost to consumers.
'Typically, a 20-foot container carrying 20 tonnes of cargo will see an increase in handling charges of just 0.45 sen per kilogram,' he added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
4 hours ago
- The Sun
Pahang expands job opportunities with new investments, welcomes locals back
TEMERLOH: The Pahang government is actively working to create more job opportunities by drawing additional investments into the state. Menteri Besar Datuk Seri Wan Rosdy Wan Ismail emphasised the state's commitment to encouraging those born in Pahang but working elsewhere to return, given the rising investment inflows. 'We want to provide plenty of job opportunities so that they can return to Pahang. I was told that those working elsewhere are willing to return if there are better offers,' Wan Rosdy said during a press conference after the Pahang state-level Asyura Carnival 1447 Hijrah at Surau Kampung Paya Laman, Lanchang. The carnival, organised by the Pahang Islamic Religious Affairs Department (JAIP) alongside other agencies, featured 33 teams competing in a bubur asyura cooking competition. The event aimed to foster community spirit and promote generosity. In a related development, 46 late-offered haj pilgrims received RM760 each under the Baraqah Haji Pahang Programme. Wan Rosdy also highlighted the state's economic progress, noting that Pahang's investment value has reached RM4 billion as of June 2025. When asked about an upcoming special announcement by Prime Minister Datuk Seri Anwar Ibrahim, Wan Rosdy expressed hope that the benefits would extend to all states, including Pahang. 'The Prime Minister has said it will be a good announcement, so let's wait. I don't know either, no one knows,' he added. – Bernama
New Straits Times
10 hours ago
- New Straits Times
Woman protests double agent fee for JB apartment rental renewal
JOHOR BARU: A Malaysian woman working in Singapore has raised concerns over being charged a second agent commission despite only renewing her rental for a property near the Customs, Immigration and Quarantine (CIQ) Complex here. In a Facebook thread that has since gone viral, the tenant questioned why she was asked to pay another RM1,431 in agent fees — the same amount she paid when she first rented the property a year ago. "I'm not moving. I'm staying in the same house. Why should I be charged again? What service justifies this?" she wrote in a post shared under the username miarania96, which included a full breakdown of her initial rental costs totalling RM11,331. According to her, the agent responded by calculating that the fee equated to "RM4 a day" and said it was for "our service for the upcoming one year". The woman, who works in Singapore and depends on accommodation at rental units near CIQ due to transport constraints, said she felt pressured to comply. "They told me it's standard practice in Johor. But when I rented in Selangor, agents didn't charge again for renewals — some even let me deal directly with the owner," she said. The Valuers, Appraisers and Estate Agents Act 1981 (amended 1997) regulates property professionals in Malaysia, requiring agents to operate ethically and transparently. The woman's post has sparked debate on whether such repeat charges are legally permissible or simply an industry practice. The 'New Straits Times' is contacting the Board of Valuers, Appraisers, Estate Agents and Property Managers (the regulatory body overseeing real estate agents in Malaysia) and state-based authorities and associations, to clarify whether repeat commission fees on rental renewals are allowed under current regulations.
New Straits Times
11 hours ago
- New Straits Times
Pharmaniaga shares soar past 45pc, volume hits two-year high
KUALA LUMPUR: Shares of Pharmaniaga Bhd soared more than 45 per cent in active trade, as buying momentum lifted trading volume to levels not seen in over two years. At 11.54am, the stock was up six sen or 38.71 per cent at 21.5 sen, with 51 million shares changing hands, its busiest day since April 20, 2023. It was the second most actively traded counter at the time. The stock opened 9.68 per cent higher at 17 sen and rose as much as 22.5 sen, up 45.16 per cent from its previous close of 15.5 sen. There have been no fresh corporate announcements aside from the renounceable rights issue of up to 3.52 billion shares announced earlier this month. On July 1, the counter went ex-rights, triggering a technical price adjustment from 23.5 sen on June 30 to 16 sen. Until today's rally, the stock had been trading between 14 sen and 16.5 sen. At 22 sen, it is now edging back toward its pre-rights issue level above 20 sen. Pharmaniaga, once weighed down by a RM552.3 million impairment from unsold Covid-19 vaccines, slipped into Practice Note 17 (PN17) status in February 2023. But the company has since returned to profitability in the financial year ended Dec 31, 2024 (FY24) and expects to stay in the black in FY25. The group is eyeing revenue of RM4 billion this year, up from RM3.8 billion in FY24, a level it last crossed in FY21. Its managing director Zulkifli Jafar has said the company aims to exit PN17 status by the end of this year or early 2026. Pharmaniaga is majority-owned by Boustead Holdings Bhd, which in turn is controlled by Lembaga Tabung Angkatan Tentera (LTAT). According to the latest annual report, LTAT holds a direct 44.47 per cent stake in the company.
