Westports container tariff hike postponed for another month

Activity fell in Malaysia and Taiwan, a sign the U.S.-China trade conflict's impact on the rest of Asia was broadening.

PETALING JAYA: Westports Holdings Bhd said the Government has postponed the implementation of a container tariff hike at its port by another month.

In a filing with the stock exchange yesterday, the port operator said it had received a letter from Port Klang Authority notifying that phase 1 of the revised tariff would take effect on Nov 1, instead of Oct 1.

The regulator did not state the reason for the second delay.

Port Klang last revised the container tariff about 14 years ago. Phase 1 of the proposed container tariff hike was supposed to take place on Sept 1. The second hike would be implemented after three years.

The revised tariff covers container terminal handling charges for import, export, transshipment, shifting and storage charges for container, as well as handling charges for heavy lift or uncontainerised cargo.

AmResearch in its Aug 3 report said the tariff hike was expected to contribute 12% and 13% increase in Westports’ earnings for financial years 2016 and 2017.

Westports’ shares closed two sen or 0.46% lower at RM4.30 yesterday, with a market capitalisation of RM14.63bil.