Penang business groups wary of higher proposed charges


Shipping business: A container ship docking at the North Butterworth Container Terminal.

GEORGE TOWN: Penang business groups are concerned that proposed higher warehousing and freight-forwarding charges for less-than-container-load (LCL) cargo at Port Klang could eventually be passed on to consumers.

Penang Importers and Exporters Association president Datuk Kenneyyh Tan Soo Nam said businesses are already facing rising costs in other areas.

“When everything increases, who will have to bear the cost?

“This will be passed on to consumers,” he said when contacted yesterday.

Tan said businesses should be given a clear explanation why an increase is being proposed.

“We may accept it if the rates have not been reviewed for a long time, but it depends on how much the increase is,” he said, adding that higher charges should come with better service and efficiency.

Small and Medium Enterprises Association northern region chairman Calvin Kwan said the revision involved LCL import and export cargo handled through warehouses and freight-forwarding facilities at Port Klang.

He said SMEs relying on LCL shipments would be particularly affected as they lacked sufficient volume for full container loads.

“It is too early to assess any impact as the proposed rates are still subject to stakeholder consultation.

“Our main concern is whether the revised charges are reasonable, transparent, and proportionate to the actual increase in operating costs,” he said.

It remains unclear whether Penang Port would consider a similar review, according to Kwan.

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