Malaysia shipowners urge dialogue on port tariff hike impact

New Straits Times

20-05-2025

KUALA LUMPUR: The Malaysia Shipowners' Association (MASA) has called for discussions through the Port Consultative Committee (PCC) regarding the government's recent proposal to implement a 30 per cent increase in port tariffs and the introduction of a new port charging framework.
The association's chairman, Mohamed Safwan Othman, said the proposed changes might introduce unexpected cost burdens across the maritime and logistics value chain, ultimately affecting industry stability and national trade competitiveness.
He said all tariff-related matters should be discussed via a formal consultative platform to ensure all industry voices are heard, from shipowners and hauliers to logistics providers, port users, and manufacturers.
In a statement, Mohamed Safwan said the proposals must be executed responsibly through transparent justification, phased implementation, and, most importantly, structured engagement with all stakeholders.
"Changes on port tariffs and the introduction of a new port charging framework may introduce unexpected cost burdens across the maritime and logistics value chain, ultimately affecting industry stability and national trade competitiveness," he said.
Mohamed Safwan was responding to the proposals under the New Guidelines on Port Tariff Non-Gazetted Tariff (NGT) announced by Penang Port Sdn Bhd.
He noted that the proposed changes outline a wide-ranging update to port charges, including new fee categories and adjustments that affect marine services, port dues, pilotage, towage, and container handling.
"The introduction of new fees such as environmental protection charges, tugboat standby rates, and shifting charges must be supported by transparent cost rationale and performance benchmarks, he said.
Mohamed Safwan emphasised that any increase in cost must come with demonstrable improvement in port services, which includes reduced waiting and turnaround times, more efficient container handling, streamlined gate operations, and improved digital systems for tracking and billing.
"Without such clarity, stakeholders may perceive these charges as arbitrary and disconnected from the actual services delivered. Operators must see tangible value in return for higher tariffs," he said.
Mohamed Safwan also stressed the need for a uniform application of the new tariff structure across all Malaysian ports, as differing interpretations or inconsistent rollout would only create confusion and administrative burdens for shipping lines and port users.
"Therefore, for clear guidelines and consistent enforcement to avoid market distortions," he added.
Lastly, Mohamed Safwan urged that any additional revenue generated from the tariff increases be transparently reinvested into upgrading port infrastructure, improving digitalisation, integrating multimodal transport systems, and accelerating the adoption of green port technologies.
"MASA insists that the benefits of this policy must be visible and equitable to all who contribute to the national logistics network," he said.