They’re still not ready, so 4th postponement likely

By Presenna Nambiar
Published: 2008/12/08

THE implementation deadline of a three-day free storage period policy for containers at Port Klang looks set to be postponed for a fourth time, as some industry players are still not ready for it.

The plan was first mooted in 2002.

With the January 1 2009 deadline looming, the majority of industry representatives attending last week’s briefing cum dialogue on “Reduction in Free Storage Period” were non-committal on their readiness to embrace the proposed policy.

The event was organised by the Federation of Malaysian Manufacturers (FMM).

FMM Logistics Committee chairman Mohd Radwan Alami wrapped up the dialogue by urging the Port Klang Authority (PKA) to defer its implementation, saying its members are not ready for it.
“While the fact that we are all in various stages of preparation for the reduction in free storage period (from five to three days) cannot be disputed, I believe it is only fair to say that we are not ready for such an implementation,” Mohd Radwan told a hall full of members of the port community in Port Klang on Thursday.

He said industry players have also yet to agree on a standard operating procedure (SOP), detailing the role each party plays in the total logistics chain and the cut-off time for export and import shipments.

His remark was met with silence by panelists, which comprised representatives from PKA, the Selangor Freight Forwarders and Logistics Association, the two terminal operators in Port Klang - Westports and Northport, and other government agencies.

Both Westports and Northport had in their presentation indicated that they were ready for the January 1 deadline.

Barely a month before the deadline, things did not bode well for the PKA which has been tasked to ensure that service providers meet the three days target.

“As the three-day free storage period has been gazetted, PKA will go ahead to ensure fast clearance of containers from the port, maximization of space utilisation in container yard and arbitrate any dispute between the parties involved in the logistics chain,” its general manager and chief executive officer Lim Thean Shiang said during his presentation.

In July this year, PKA had set up a committee, which comprises representatives from all trade associations, to come up with a SOP.

Meanwhile, the Association of Malaysian Hauliers said it will not reduce the advance notification time for export and import shipments from 48 hours to 24 hours.

Lim said as the hauliers are licensed under the Commercial Vehicle Licensing Board (CVLB), an agency under the Ministry of Entrepreneur and Cooperative Development, there is little that can be done to make them change their decision.

Lim had earlier stated though that the matter would be brought to the attention of the Ministry of International Trade and Industry.

By Presenna Nambiar