Tariff poser for Westports

CGS-CIMB Research the tariff increases could turn out to be insufficient to adequately compensate Westports' capex allocation.

PETALING JAYA: The lack of certainty on the quantum and timing of much-needed regulatory terminal handling charge (THC) tariff increases could be a de-rating risk for Westports Holdings Bhd.

According to CGS-CIMB Research, this is because the tariff increases could turn out to be insufficient to adequately compensate Westports for the capital expenditure (capex) that it has allocated for its Westports 2 (W2) terminal expansion project.