Imposition of congestion surcharge at KK Port raises concerns

KOTA KINABALU: Concerns have been raised by several key stakeholders over the imposition of a congestion surcharge at Kota Kinabalu Port, which is set to take effect on July 16.

Association of Frozen Meat and Food Importers of Sabah chairman Lim Young Peing emphasised the importance of a fair and competitive environment for shipping companies, where costs are justified and transparent to all stakeholders.

He said they are willing to work with all parties to resolve the issue for the good of the industry and consumers.

Lim criticised the surcharge, set at RM500 for a 20-foot container and RM1,000 for a 40-foot container, noting the significant impact on operational cost.

“This will eventually trickle down to the consumer and will exacerbate inflationary pressures which the government is trying very hard to contain,” he said.

Highlighting potential anti-competitive behaviour among the shipping lines, the association also called for intervention from authorities, such as the Sabah Ports Authority and the Malaysia Competition Commission.

National Consumer Foundation Sabah chairman David Chan also urged the port authority to reconsider the surcharge, saying that port congestion is beyond the control of shipping companies.

“Consumers in Sabah are already facing significant challenges due to the high cost of living driven by logistical issues,” he said.

Meanwhile, Malaysian International Chamber of Commerce and Industry Sabah chairman Datuk Lee Swi Heng pointed out that only two out of four berths at Sapangar Bay Container Port are operational.

He noted that in the last three weeks, one of the two operational berths has been out of order, causing backlogs, with the usual excuse being a lack of manpower and equipment breakdown.

The surcharge for shipper-owned containers is set at US$100 (RM470.90) for 20-foot containers and US$200 (RM941.80) for 40-foot containers.

Lee cautioned that the surcharge would affect business competitiveness in Sabah.

He also urged the state government to seek long-term solutions such as upgrading port facilities.

In response, state Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said the state secretary has been tasked to lead efforts in addressing the situation following a state Cabinet discussion.

Phoong added that a meeting was held recently with the stakeholders and port operator.