Govt announces RM17mil package to aid Port Klang logistics players

By Farah Adilla - July 9, 2020 @ 7:26pm

KUALA LUMPUR: The government has announced a RM17.23 million incentive package to assist and alleviate the financial burden of logistics players in Port Klang.

The announcement was made by Transport Minister Datuk Seri Dr Wee Ka Siong during a work visit to the port today.

According to Port Klang Authority (PKA), the package includes exemption and discounts from 50 per cent to 100 per cent on lease rentals to PKA's tenants from March to December, a 20 per cent discount on port dues to shipping lines from July to December.

Further, a 20 per cent discount on foreshore charges to private jetty users comprising importers and exporters from July to December and a deferment up to 30 per cent rent collection for Port Klang Free Zone (PKFZ) tenants from July to December.

Besides that, other initiatives include extension of free storage period at the terminals for import from four days to six days and for export from five days to seven days.

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

Shipping lines, exporters and importers were also provided with commercial incentives by terminal operators.

At the end of the full day programme, Wee reiterated that the government has been at the forefront with proactive measures in taking Malaysia through this Covid-19 crisis successfully.

PKA said Port Klang has seen an increase in container handling since June 2020 in comparison to the months of March till May 2020, since the government's announcement to open up economic activities.

The four release periods approved by the government to enable the movement of non-essential cargo helped in reducing the congestion at Port Klang's yards from 78 per cent to 60 per cent.

In addition, over 300,000 containers were successfully moved in and out of the port within 30 days during the Movement Control Order (MCO) period.

"Port Klang Authority and the terminals expressed their gratitude towards the Malaysian government and the Minister of Transport in particular on his proactive actions towards easing the ports and logistics constraints during the MCO period," it said.

PKA also noted that during the first half of 2020, it saw a negative growth of 9.3 per cent in terms of the port's container handling, as compared to the first half of 2019, due to the impact of Covid-19 on the logistics and manufacturing industries faced by Malaysia and the rest of the world.