Logistics players in Port Klang get incentives

Operating system: Dr Wee and Chong (right) being briefed on Westports’ vessel traffic management system.

KLANG: Logistics players in Port Klang continue to obtain support with a slew of financial incentives and initiatives as they recover from the onslaught of the Covid-19 pandemic.

The Port Klang Authority (PKA) has introduced a RM17.23mil financial incentive package and other initiatives to assist the port community and to enhance trade.

This comes on the back of positive news from the port which has seen an increase in container handling since June as compared to the months of March until May.

Transport Minister Datuk Seri Dr Wee Ka Siong said the gradual reopening of economic activities since May had resulted in significant improvement.

Port Klang saw a negative growth of 9.3% in terms of container handling for the first half of the year to 5.99 million twenty-foot equivalent units (TEUs) as compared to the same period last year.

“The entire projection for Port Klang in January was 14.1 million TEUs with a 3.7% increase.

“The updated forecast due to the pandemic projected 11.4 million TEUs, or a 16.3% decline.

“If we can boost import and export activities, we may be able to reach more than 12 million TEUs and we aim to bring the decline down to less than 10%,” he told a press conference here after his official visit to Westports, Northport and the Port Klang Free Zone (PKFZ) yesterday.

From January to June this year, Port Klang recorded a 2% increase year-on-year (y-o-y) in container ship arrivals from 5,027 ships to 5,128 ships.

Dr Wee announced that the bulk of the financial incentive by PKA was the deferment of up to 30% of rent collection for PKFZ tenants from July to December this year.

The total amount of RM14mil will be collected over the period of 12 months in 2021.

“There will also be exemption and discounts from 50% up to 100% on lease rentals to PKA’s tenants from March to December this year, amounting to RM510,535.

“A 20% discount on port dues to shipping lines will be given from July to December 2020, amounting to RM2.54mil,” he said.

Dr Wee added that private jetty users, comprising importers and exporters, would get to enjoy a 20% discount on foreshore charges, totalling RM180,517.

He said PKA had approved the incentives and initiatives to alleviate the financial burden of the industry players in Port Klang.

Dr Wee also announced that the free storage period at the terminals for import would be extended from four days to six days whereas terminals for export would be extended from five days to seven days.

“This initiative will enable importers and exporters to use the terminal yards for cargo storage if there is insufficient storage at their premises without any charges incurred for the duration of the free storage period.

“Commercial incentives will also be provided by terminal operators to shipping lines, exporters and importers,” he said.

Among other initiatives include the development of a common digitalised platform to enhance service connectivity between various players in the port and the logistics industry and a continuous infrastructure development despite the economic slowdown.

“On a whole, the potential for Port Klang is huge. We are now the 12th largest port in the world and we aim to be in the top 10.

“What we have to do is the expansion of our terminals and the handling of our cargoes and containers has to be increased,” said Dr Wee.

Also present during the event was PKA chairman Datuk Chong Sin Woon.

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