Kuala Lumpur: The Ministry of Transport (MOT) is undertaking a study to develop a more structured mechanism regarding port charges to ensure the sustainability of the country’s ports while balancing market needs and capacity development. Transport Minister Anthony Loke Siew Fook highlighted that the current charge review process is allegedly inconsistent and lacks transparency.

According to BERNAMA News Agency, Loke emphasized the need for a transparent and structured system where charges are reviewed periodically. He suggested that this review could be annual, potentially linked to lower formulae such as the Consumer Price Index (CPI) and the annual inflation rate. For instance, if the annual inflation rate is two percent, the charge increase could be gradual rather than abrupt.

Loke addressed the media after the monthly assembly of the MOT and the Raikan Kasih MADANI 2025 event. He elaborated on the necessity for a refined approach to ensure fairer charges for all parties and to maintain the competitiveness of the country’s ports. He noted that without reassessing these charges, port operators’ revenue could decrease, leading to reduced investment in capacity enhancement.

Regarding the Federation of Malaysian Manufacturers (FMM)’s appeal for a delay in the proposed 30 percent increase in port tariffs, Loke stated that neither the Port Klang Authority (PKA) nor the Johor Port Authority (JPA) had submitted documents for final approval. He clarified that the Port Authority controls the increase in port charges, which are not adjusted arbitrarily but assessed based on operator requests.

Loke mentioned that the last review occurred a decade ago in two phases, with increases of 15 percent in 2015 and another 15 percent in 2018. He outlined that the proposed 30 percent increase would be phased over three years, with increments of 15 percent in the first phase, 10 percent in the second phase, and five percent in the third phase. On March 8, Bernama reported the FMM’s request to postpone the 30 percent tariff hike due to its potential impact on business costs for manufacturers and transport companies.