SHIPPERS and service providers along the logistics value chain should work together to keep costs at competitive levels, says Deputy International Trade and Industry Minister Datuk Jacob Dungau Sagan.
“An efficient and cost competitive logistics and transportation sector is vital to maintain the competitiveness of exports,” he said at the opening of the National Shippers Conference 2009 in Kuala Lumpur recently.
Jacob, who is also chairman of the Malaysia National Shippers’ Council, said it is also vital that the shipping industry “not kill the goose that lays the golden egg” as uncompetitive exports will lead to a reduced demand for shipping services.
One of the major challenges facing the logistics sector is the ongoing negotiations at the bilateral, regional and multilateral level to liberalise trade and services.
He assured players that liberalisation would not injure the industry. It would instead gradually dismantle the barriers to trade and increase foreign-domestic competition in the markets.
Under the roadmap between 2008 and 2013, the logistics services sector will undergo a “progressive aperture”. The areas involved are maritime cargo handling, storage and warehousing, freight transport courier and air and rail freight.
“Although Malaysia has not yet entered into any commitments in services in the various FTAs signed, market forces will ensure us moving towards that direction, sooner or later.”
Logistics and maritime services providers should be prepared for future liberalisation measures.
“Opportunities in these sectors will boost cooperation and business partnerships between Asean and Asian service providers. Shippers are at an advantage of having more viable service providers to provide services for their shipments,” said Jacob.
Meanwhile, Federation of Malaysian Manufacturers (FMM) logistics committee chairman Mohamad Radwan Alami said the industry is frustrated with the lack of initiative from shipping lines to have a dialogue with industry players.
Shippers, who have to face the high freight costs, new rules and demands of the shipping lines, are seeking the help of the International Trade and Industry Ministry (Miti) to look into their plight.
In response, Miti senior director of services development division, Mohamed Shahabar Abdul Kareem, said the government is looking to improve the coordination in the industry.
The logistics value chain, which include haulage, public warehousing, custom agents/freight forwarders, ports and maritime transport, is under the responsibility of various ministries and agencies.
Many of the areas in the sector are also unregulated, he said.
Source: Business Times
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