Port Congestion Surcharge In Labuan Is Only Temporary – Transport Ministry

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Deputy Transport Minister Datuk Kamaruddin Jaffar, third left, being briefed by Labuan Port Authority and Labuan Port Management Sdn Bhd officials on the actual causes of port congestion.

LABUAN: The Labuan port congestion surcharge currently imposed by the shipping companies on containers to and from Labuan will be temporary.

Deputy Transport Minister Datuk Kamaruddin Jaffar said the surcharge would soon be scrapped as the port congestion, being the factor for the surcharge, would be addressed.

Shipping companies (companies name undisclosed) issued a customer advisory dated October 3 to exporter and importers on the implementation of the congestion surcharge for all shipments to and from Labuan port for all domestic and international shipments including shipper owned container (SOP) for all container type of RM2500 for 20-footer size and RM5000 for a 40-footer.

Kamaruddin said the MOT through Labuan Port Authority (LPA) has negotiated with the shipping companies concerned to reduce the surcharge amount to RM500 (20’) and RM1, 000 (40’).

“These shipping companies impose the surcharge is to cover the cost of port-related charges due to the congestion in Labuan port, but after the situation returns normal after the various measures taken by the LPA and port operator, the surcharge will be lifted….. as this is just a temporary measure,” he said.

He said measures would be expedited to ensure the surcharge would not be continued in the interest of the consumers on the island.

The Labuan Chinese Chamber of Commerce as reported in a local daily Tuesday suggested the MOT or LPA to absorb the Labuan port congestion surcharge of between RM2, 500 and RM5, 000 the shipping companies imposed beginning this month for containers discharged here.

Kamaruddin said the move was not a practice by his ministry, but rather taking amicable and more effective solution.

“We regret for what had happened, but we are seriously and committed to resolve the unfavourable surcharge,” he said.