Government urged to intervene in congestion surcharge issue

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Tan (third left) handing over KCGCCI’s request to Masing as (from left) Chan, Chai, Kuek, Chin and Foo look on.

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KUCHING: The Kuching Chinese General Chamber of Commerce and Industry (KCGCCI) is appealing for the Sarawak government’s intervention on the imposition of congestion surcharge by shipping companies.

KCGCCI president Datuk Tan Jit Kee handed over a request to Deputy Chief Minister Tan Sri Dr James Jemut Masing, who is also Infrastructure and Port Development Minister, recently.

Among those present were KCGCCI vice-presidents Kuek Eng Mong and Dennis Chin, KCGCCI Digital Economy Committee chairman Rodger Chan, KCGCCI secretary-general Jonathan Chai, and Kuching Port Authority (KPA) director Milton Foo.

KCGCCI said Masing agreed to direct its ministry to convene a meeting with all stakeholders to deliberate on the matter.

They would discuss ways to resolve the pressing issue of the congestion surcharge, which has been arbitrarily and unfairly imposed by the shipping companies.

Port users have been made to understand by the shipping companies that their operational costs were escalated by the ongoing congestion at Senari Terminal of KPA due to a computer outage which has led to significant delay to the turnaround time of vessels and also the delivery of containers.

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“It would be grossly unfair for the shipping companies to pass on their perceived losses to port users and the business community at large who have played no part and are not responsible for the delay in the container delivery or congestion of the port,” KCGCCI said.

In the meantime, KCGCCI viewed that new and additional quay cranes must be acquired and installed by KPA soonest possible.

“This to smoothen and increase the efficiency of the loading and unloading of the containers.”

On April 13, KPA informed that on March 27 at its Senari Terminal, a computer outage happened due to water ingress into the electrical conduit to the computer room resulting in electrical short circuiting.

Following the incident, KPA on March 29 implemented alternative procedures to continue its delivery services, which combined manual procedures with online application and its back-up server at Pending Terminal.

KPA general manager Robert Lau said by April 13, the volume of delivery and receiving returned to normal.

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On April 17, New Sarawak Tribune reported that with the vessel turnaround time delayed at Senari Terminal, shipping companies had no choice but to impose a high KCS (Kuching Congestion Surcharge).

It is understood that the congestion surcharge rate is RM300 for a 20-foot container and RM600 for a 40-foot container.

The surcharge rate covers all shipments to and from the port for all domestic and international shipments.

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