Shipping companies urged not to impose congestion surcharge as promised

Tan (second left) hands over a memorandum to Masing during the recent meeting. Also seen are Chai (left) and Kuek.

KUCHING (April 30): Shipping companies have been urged to honour the recent agreement not to impose the congestion surcharge resulting from the Senari Port’s computer system damage on March 27.

The agreement to cease imposing the surcharge came about following a meeting with Deputy Chief Minister and Infrastructure and Ports Development Minister Tan Sri Datuk Amar Dr James Jemut Masing on Monday.

In calling upon shipping companies to honour the agreement, the Kuching Chinese General Chamber of Commerce and Industry (KCGCCI) said it empathised with the shipping companies in facing the congestion at Senari Port caused by the computer system damage last month after water seeped into the electrical conduit.

“However, KCGCCI is of the view that it would be grossly unfair to expect the port users and the importers to shoulder the additional costs as they bore no responsibility for the delay in the delivery of the containers or the congestion of the port.

“The congestion surcharge will inevitably escalate the cost of operation and reduce the competitiveness of the local businesses and industries and that the surcharge could then trickle down to consumers who would end up paying extra for the goods in the market,” said KCGCCI in a statement today.

The statement was issued following a recent meeting between Masing and KCGCCI.

Among those present were KCGCCI president Datuk Tan Jit Kee, vice-president Kuek Eng Mong, and secretary-general Jonathan Chai.

KCGCCI pointed out Masing had assured the shipping companies, in a statement on Tuesday, that the operations of Kuching Port Authority (KPA) would return to normal and the congestion would be resolved soon.

As such, KCGCCI appealed to the shipping companies to give a chance for KPA to rectify its problems and cease the imposition of the congestion surcharge on the consignees and importers pending the rectification of the problems which triggered the congestion.

“After all, as claimed by the Sarawak Shipping Association (SSA) in its press statement published on Thursday, the collection of such surcharge was seen more on alerting the port to re-examine its performance level, rather than recovering ship owners’ daily losses due to the unnecessary queuing up more than a week for berthing under the present situation.

“Then the shipping companies should all the more cease to impose such surcharge on the consignees or importers since they have achieved their objective following the in-depth review of the operational problems of KPA and the assurances given by the deputy chief minister,” it said.

KCGCCI said the imposition of congestion surcharge by the shipping companies would not solve the problem of port congestion at Senari Port.

It cautioned that this would only unreasonably increase the cost of living to all consumers at large.

KCGCCI said it appreciated the efforts of Masing and his ministry to help KPA resolve the port congestion with immediate, medium, and long term solutions by instructing KPA to hire portable cranes to speed up the loading and unloading of containers, as well as long term solution by utilising internal funds to procure new and additional gantry and quay cranes.

“We are of the opinion that shipping companies should appreciate the good gesture and noble intention of the minister and KPA in pledging to find means and ways in resolving the outstanding operational problems of Senari Port.

“In the event that the operation of KPA would not be able to get back the normal within the promised time frame, the shipping companies should negotiate with KPA to indemnify their losses, rather than targeting the consignees or importers as their scapegoats,” KCGCCI suggested.

KCGCCI said the shipping companies should not deprive the basic rights of the port users and consumers at large who had played no part and were not liable for the congestion encountered by the shipping companies.

Earlier this week, the shipping companies agreed to cease imposing the surcharge after a meeting with Masing, who then assured the shipping companies that by the end of the month, KPA’s operation would return to normal and the congestion would be solved.

He said KPA would also acquire a new harbour crane using KPA’s own internal funding on top of KPA rectifying the computer system outage, and shipping companies would provide their own ship-to-shore cranes on one berth.

He added that as a long-term measure, the state government would acquire two extra quay cranes to enable three berth operations, as well as four new gantry cranes to replace the current ageing cranes.

Masing also said KPA had been instructed to review its computer system, with backup software, so that in the event of another computer outage, there would not be any more congestion both on land and on sea.

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