Port Klang, Malaysia's largest port and the second largest in Southeast Asia, plans to gradually increase container handling and storage fees from next month until 2027, sparking discontent among businesses.

The Port Klang Authority sought to reassure the market by stating that the adjusted fees would still be lower than those of other ports in the region, reaffirming Port Klang's position as one of the most competitive ports in the area.

In a statement released last Saturday, June 14th, Soh Thian Lai, President of the Federation of Malaysian Manufacturers (FMM), mentioned that the Malaysian Ministry of Transport published the new port fee structure in the government gazette last Friday, June 13th, with an overall average increase of 30% in port fees, to be implemented in phases starting from July 1st.

According to Zhongjin's understanding, the handling fee for a 20-foot container at Port Klang will increase from 300 Malaysian Ringgit (approximately 71 USD) to 390 Malaysian Ringgit (approximately 92 USD). While this fee is comparable to charges in Singapore and Hong Kong, it exceeds those in neighboring countries like Vietnam, Indonesia, and Thailand.

Currently, Port Klang handles around 12.5 million standard containers annually. The comprehensive fee adjustment is projected to increase costs for businesses by over 1.1 billion Malaysian Ringgit (approximately 260 million USD) per year. Among these adjustments, the largest increase is in container storage fees, ranging from 197% to 243%.

In response to this, Subramaniam, the General Manager of the Port Klang Authority, issued a statement on Monday, June 16th, emphasizing that even with the full implementation of the new rates by 2027, Port Klang's handling fees would still be approximately 5% to 185% lower than those of other ports in the region, maintaining its status as one of the most competitive ports in the area.

He stated, "For example, for a 20-foot container weighing 20 tons, the increase in port handling fees per kilogram is only 45 cents, which can be considered a minor adjustment."

Regarding the significant increase in storage fees, he explained that Port Klang's container storage fees have not been adjusted since 1966.

He said, "Historically, the storage costs have been relatively low, resulting in long-standing container backlogs, leading to port congestion and decreased operational efficiency. The new fee standards are expected to improve space turnover, expedite cargo movement, and enhance operational efficiency."