Port Klang: The Port Klang Authority (PKA) today clarified that its tariff rates will remain among the most competitive in the region. Its general manager, K Subramaniam, said that even after the staggered increases are fully implemented in 2027, Port Klang’s tariffs will still be between 5.0 per cent and 185 per cent lower than those of other ASEAN ports.
According to BERNAMA News Agency, Subramaniam refuted claims by several parties regarding the recent tariff revision, stating that Port Klang’s overall cost competitiveness reinforces its strategic role as the preferred logistics and transshipment hub for global logistics and distribution centres. He emphasized that a comprehensive benchmarking exercise was conducted against neighbouring and regional ports during Port Klang’s latest tariff revision. Despite the revision, Port Klang’s tariff rates will remain among the most competitive in the region.
Subramaniam clarified that it was incorrect to assume all container volumes in Port Klang would be subject to the full increase, as this ignores key factors such as phased implementation, free storage periods, and the fact that a significant portion of cargo is transshipment, which is priced differently. He added that the last tariff review was conducted a decade ago, and storage rates have remained unchanged for nearly six decades.
He further explained that the storage rate has remained unchanged since 1966, contributing to yard congestion as the port has been used as a low-cost, long-term storage option. The revised charges aim to improve cargo turnaround by discouraging long-term storage and easing yard congestion, thereby enhancing operational efficiency. Subramaniam noted that port users who move containers within the free storage period would not be affected by the targeted increases.
Subramaniam stated that the revised rates consider contemporary logistics solutions within the supply chain and support responsible storage usage in the ports. This facilitates more productive and efficient operations. He emphasized that the tariff revision is designed to strengthen Port Klang’s position as a regional logistics hub by enabling continued investment in capacity, technology, and sustainability, ultimately benefiting manufacturers, exporters, and importers, and advancing Malaysia’s trade ecosystem.
Before the tariff was approved, a comprehensive and detailed study was undertaken. As a result, the quantum of the rate increase was reduced and implemented through a staggered three-year plan. In response to concerns that the revision would significantly raise consumer goods prices, PKA clarified that port charges represent only a small fraction of the total cost to consumers. Typically, a 20-foot container carrying 20 tonnes of cargo will see an increase in handling charges of just 0.45 sen per kilogram.