Kota Kinabalu: The Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) hopes Sabah Ports Sdn Bhd (SPSB) will pressure shipping lines to withdraw the Port Congestion Surcharge on Sapangar Bay Container Port because SPSB has ensured that the large number of containers piled up at the terminal will be cleared by end of July and normal operations will be resumed.
“If everything returns to normal as assured by SPSB, there is no reason for the shipping lines to impose any surcharges,” said its President Datuk Michael Lui, Friday.
He also said it is incredible that SPSB only formulated timely measures to solve the congestion problem after the implementation of the Congestion Surcharge triggered dissatisfaction among operators.
“SPSB should always be prepared to deal with the port congestion problem anytime, not wait until operators and consumers complain about the extra costs!”
SPONSORED CONTENT Shell awards Sabah LiveWIRE winners Kota Kinabalu: Shell has awarded five enterprises as the state winners of Shell LiveWIRE Malaysia 2024, following the Sabah state finals held at Plaza Shell in Kota Kinabalu. . Read more Lui hopes SPSB will pay attention and focus on supervising the operational efficiency of the port.
“KKCCCI agrees that simplifying the process of containers entering the terminal will help to quickly solve the terminal congestion problem.
Increasing manpower to clear the containers piled up at the terminal and for operators to clear the accumulated containers at the terminal promptly is also a feasible solution,” he said.
The shipping companies recently announced that a Congestion Surcharge of RM500 to RM1,000 will be imposed on all container types from July 16, on grounds that the continuous congestion at Kota Kinabalu Port has caused serious delays in ship turnaround time, affecting the shipping schedule, and thus causing a significant increase in operating costs.
SPSB, in a statement Thursday, expressed deep regret over the sudden decision by the shipping lines and appealed to reconsider to prevent additional costs for Sabah consumers and adverse effects on local trade.
SPSB said it has outlined immediate steps to address the congestion, and with clear strategies in place, assures that container backlogs would be cleared by end of the month.
As an alternate option, SPSB would consider for Ro-Ro operations to be temporarily handled at KK Port until more yard space is available at SBCP.
Despite KK Port having greatly reduced in land size, and being surrounded by ongoing developments, this move will provide significant relief to SBCP’s yard capacity and berth availability.
Sabah Ports Authority (SPA) and SPSB have already identified several areas near KK Port as potential staging areas.
A close collaboration between SPA, SPSB, Ro-Ro operators and cargo clearance authorities is essential to ensure a coordinated approach among all agencies involved.
SPSB also stated that the SBCP’s outer berth was specifically designed to handle container cargoes and the two berths mentioned are, in fact, inner berths that primarily cater to smaller vessels.
“One of the inner berths has already been blocked for the SBCP expansion while the other berth remains operational. During incidences of vessel bunching (arrival of multiple vessels within a short period of time), berth availability is further impacted, preventing the port from taking on more ships
“Since taking over the port operations from SPA in 2004, SPSB has invested close to RM1 billion to develop the ports, with many initiatives specifically targeted towards upgrading the capability of SBCP to cater for future demands,” it said.
* Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss.
* Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.