CABOTAGE POLICY NO LONGER APPLIES

THE ISSUE on Cabotage Policy which is highly disputed by many people in Sabah and Sarawak was brought up by the KKMP Hiew King Cheu in Parliament. He asked the Assistant Minister of Transport Datuk Abdul Rahim Bin Bakri during the Q n A session whether the said shipping policy can be abolished or lifted.

Datuk Bakri answered that the disputed Malaysian shipping policy - Cabotage Policy is as good as in 'non-existence' because based on the public complaints, we never stop foreign ships from directly entering to the East Malaysia ports with their cargoes and containers. The foreign ships can also ship out cargoes and containers from Sabah and Sarawak directly.

In 2009, the government liberalized transshipment when the "mother vessel" sailed into Port Klang with their bulk cargoes, they are allowed to transship their cargoes on to other foreign ships, for example MERS can transship to its own feeder vessels. In this process, a restriction is imposed and this required a domestic shipping license (DSL) when a ship is transporting cargoes from Port Klang to Sabah and Sarawak or 'Point To Point' like Port Klang to KK port and Port Klang to Kuching.

Even though some foreign shipping companies were using 50% of the DSL, but the priority is still given to the local shipping companies.   The government supports the local shipping industry by granting them with tax free due to the big investment involved in building a bigger local shipping fleet.

The policy is not bringing negative effect and losses to the country, the government is setting up a committee to study the said policy and PEMANDU is also having a working laboratory to look into the aspects. A decision shall be reached to resolve the matter for the benefit the people, and will decide after receiving the report from PEMANDU on whether or not the policy is to be abolished.

MP Hiew commented that it is the government who has to deal with the high freight charges from Semananjong to Sabah and Sarawak first, and this is seen in cooperation with the cheap international freight charges.

The high port charges have contributed to the high cost on freight and this has added on to the burden of the consumers. The Sabah Port charges under ship/vessel for a 20 foot container is RM 200 and for a 40 foot is RM 300. The Sabah Port charges under consignee on the crane hire charges for 20 foot container is RM 50 and 40 foot is RM 100.

The Terminal Handling Charges is as high as RM 295 for 20 footer and RM 440 for 40 footer. The Local Terminal Handling charges or Empty container Return from Sabah Port for 20 footer is RM 148 and RM 260 for 40 foot container. The bill of lading costs RM 100 per set. All these expensive port charges is being transferred to the consumers eventually.

Therefore, if we want to see cheaper goods prices, the government has to look seriously on how to reduce the port charges by the post. It is recommended the PEMANDU (a government advisory body) should "drive" into this area and advice the government wisely and accordingly.