KUALA LUMPUR (Aug 17): Straits Inter Logistics Bhd’s 51%-owned subsidiary Megah Port Management Sdn Bhd (MPM), which operates the Labuan Liberty Terminal, claimed today that contrary to allegations, MPM had not increased charges ever since it took over the management of the port.
In a statement today, MPM managing director Tan Sri Mohd Bakri Mohd Zinin said that while MPM values opinions and suggestions towards making the Labuan Liberty Terminal a prominent port in the region, MPM sees a need to immediately address certain inaccurate and unsubstantiated claims made against the port management.
“During such an unprecedented time when economic activity has slowed down due to the movement control order (MCO) and Covid-19, it would make sense for a company to cut back on its capital expenditure but we have done the complete opposite.
"Up until the end of July, we had invested RM6.3 million in infrastructure improvements at the Labuan Liberty Terminal despite a reduction of approximately 35% in cargo volume.
"Our stakeholders and port users have seen and appreciated our efforts, and we have received positive feedback in return. This makes us question the credibility of the recent accusations and the intention behind such allegations,” Mohd Bakri said.
In the statement, MPM claimed it had made the first move to waive all wharfage and berthing charges in light of the Covid-19 pandemic's impact on its clients.
The company claimed that until today it had not yet collected any of these charges, and it does not intend to do so before discussing the terms in the upcoming town hall session.
"As incoming goods often arrive on Thursday or Friday, MPM has started the initiative to exclude Saturdays and Sundays as part of the three-day free storage facility to allow port users to have more time to deliver their cargo without additional costs. Previously, Saturdays and Sundays were counted as part of the three-day free storage facility, which caused port users to pay additional charges for a non-business day.
"MPM confirms that it will be attending the town hall session scheduled for Aug 28, 2020, and looks forward to meeting with trade associations, chambers, port users and relevant bodies to discuss port-related matters after the MCO is lifted,” MPM said.
According to MPM, the Labuan port’s berths, with a total length of 355.6 metres and a depth of between 4.6 metres and 10 metres, can accommodate a deadweight tonnage of 16,000.
MPM said the port currently receives vessels carrying containers, dry and liquid bulk, general cargo as well as oil and gas products.
The remaining 49% stake in MPM is held by LPM Holdings Sdn Bhd, according to MPM.
On Bursa Malaysia today, Straits Inter Logistics shares were traded unchanged at 16.5 sen as at 11.13am, with a market value of some RM107.36 million. The stock saw 828,100 shares traded.