LOCAL private port operators have expressed concern that the merger of Malaysia’s six port authorities would slow down the decision-making process and impede the growth and operations of the respective ports.

They are also in the dark as to how the proposed Malaysian Port Commission can enhance their competitiveness in the region.

They were responding to Transport Minister Datuk Seri Chan Kong Choy’s announcement last Monday that Port Klang Authority, Penang Port Commission, Kuantan Port Authority, Kemaman Port Authority, Johor Port Authority and Bintulu Port Authority will come under the Malaysian Port Commission once it is established.

The commission’s objectives are to handle everything from planning to marketing to promotion. The Ministry of Transport is now drafting the Malaysian Port Commission Act, which is expected to be tabled in Parliament early next year.

A senior official from a local port told Business Times the proposed commission has its pros and cons.

“The proposed commission can ensure better coordination among ports in the policy-making process. It will also reduce wastage, avoid duplication and over building of port facilities and minimise cost among port operators,” he said. Besides that, the official said it can also create unnecessary red tape that may result in administrative delays in securing approvals. The national port commission may not understand the needs of the local ports.

“Nonetheless, we have no clear idea on the proposed commission and how exactly it will affect port operators like us though the Ministry of Transport officials did meet us once several years ago on the matter,” he added.

Kuantan Port Consortium Sdn Bhd general manager Datuk Zulkipli Shamsudin said local private port operators have yet to be told in detail how the port commission mechanism works.

“Personally, I hope the centralisation of the port authorities will not impede the development of the respective ports and slow down the decision-making process as well as creating nefficiencies,” he said.

He concurs that the central body may not understand some of the port problems that are local in nature.“Currently, the local port authorities are serving the respective ports well. Local problems are well-addressed by the local port authorities because they are on the ground and they understand the problems,” said Zulkipli.

The six port authorities at present perform regulatory functions over the privatised port operators at the respective ports. The functions include monitoring of port performance and facilitation of trade.

Kelang Multi Terminal Sdn Bhd executive chairman Tan Sri G. Gnanalingam said Westport is fully supportive of the formation of the Malaysian Port Commission.

We need a central organisation to look after local port affairs in the various states. There are common issues such as productivity, the regulation of port tariffs, maritime resources and engineering information that can be coordinated much better if it is centrally located. “And I don’t see any delay in approvals. Hopefully this will ultimately lead to a deregulation of the industry,” he said.

Northport (Malaysia) Bhd managing director and chief executive officer Datuk Basheer Hassan Abdul Kader shares the same sentiment. “This may offer an opportunity to be competitive with the regional ports,” he said. The formation of the proposed Malaysian Port Commission is nothing new. The idea of setting up a sole regulatory body was first mooted in the National Port Authority Study in 1997, but it was put on hold due to the regional economic crisis.

In 2000, the Ministry of Transport had commissioned another study to form the National Port Authority (NPA) or commission. The then Transport Minister Tun Dr Ling Liong Sik said the proposed formation of the NPA was aimed at better regulating the country’s port operations, development and expansion, and providing assistance to the individual authorities in an organised and uniform manner.

Back then, several private port operators had also expressed their reservations and fears over the proposed NPA, saying that the new body might have too much empowerment. Their common fear was that the NPA would stand in the way of their initiatives to develop and expand their terminals and facilities.

The NST, 6 December 2004