Saturday, July 7, 2007

Port operators want more freedom to run business

By Chong Jin Hun (jinhun@nstp.com.my)
Source: New Straits Times, July 7 2007

MALAYSIA'S port operators have urged the Government to grant them greater autonomy in running their business to stay globally competitive.

These include the freedom to buy quality equipment and allowing market forces to determine their service levels and tariffs.

"We request that ports have the freedom to purchase the best equipment and services to ensure that we can deliver globally competitive services," Federation of Malaysian Port Operating Companies (FMPOC) chairman Datuk Mohd Sidik Shaik Osman said at its inaugural gala dinner in Subang Jaya yesterday.

Transport Minister Datuk Seri Chan Kong Choy was the guest of honour.

"(Also) let the market/consumers regulate the service levels and tariffs," Mohd Sidik said.

Currently, port operators have to seek approval from the Government before they can make changes to their tariffs. The process could take years.

Non-revision of port tariffs has exerted considerable pressure on local ports' operating margins in recent years.

Mohd Sidik, who is also Port of Tanjung Pelepas chairman, said port tariffs in general have not been reviewed for almost 20 years.

"For FMPOC to move on to greater heights, the Government must take privatisation to its logical conclusion. It must remove many of the constraints that hinder the accelerated development of the industry," he said.

The port industry recently had a breakthrough as the Government decided Thursday to fully liberalise the import of cranes.

Mohd Sidik also said that FMPOC has requested a dialogue with the Transport Ministry on the proposed legislation to set up a new structure to administer the port industry.

"We are aware that the draft legislation is different from the earlier version. FMPOC was given the opportunity to comment on the earlier version and we have requested that a similar opportunity be granted to us now," he said.

FMPOC represents nine local ports, but hopes to eventually include all privatised port operations.

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