HIGHER wharfage tariff for the Liquid Bulk Terminal (LBT) at Westport is necessary due to the substantial investment involved in building an additional berth to overcome constraints and improve on overall productivity.

Westport general manager (finance) Lim Beng Keem said customers, shipping lines and their agencies have been facing constraints in berth capacity, discharge rate capabilities of the LBT customers' facilities and LBT productivity. "Westport held presentations and dialogues in the past two years with the LBT customers, shipping lines and their agencies on the matter.

“At these sessions we discussed the problems faced by them and indicated that to overcome these problems, Westport would invest in constructing an additional berth in the LBT. "With this investment, Westport will propose a tariff increase for all liquid bulk cargo passing through the LBT," he said in a statement. Lim was responding to an objection to the proposed increase by Port Klang Shipping Agencies Association Selangor president Gopala Krishnan.

Gopala had faxed a letter to the media seeking a justification from Westport for the proposed tariff increase, adding that the association was not aware of the move. Westport was puzzled at the association's claim that it was not aware of the proposed tariff increase. The minutes of the meeting indicate that the association was represented at all such meetings, including one which was attended by the association's president himself.

Those present at the briefings, said Lim, agreed that any proposed increase to the tariff must be approved by the Lembaga Pelabuhan Klang and the Transport Ministry before it is implemented. "It is with these assurances given by those present at the briefings that we decided to proceed to build the additional berth in the LBT at a cost of RM45 million," he said, adding that construction took eight months and was completed at the end of February this year.

He said the substantial investment justified the proposed increase in the wharfage tariff, adding that Westport had also been operating the LBT facilities for the last eight years on the 1966 tariffs. "Despite the fact that the facilities and the demands from our customers are far superior today than it was years ago, we still operated on these tariffs."

Westport hopes that following its justification for the proposed increase, the Port Klang Shipping Agencies Association Selangor would lend its support. . He said the association could convince its members of the need for an increase by drawing tariff comparisons with ports in this region and informing its members that it is necessary to ensure that Port Klang's capacity is not limited and remains viable for shipping lines to increase their calls at the port.