PKA general manager K Subramaniam said the claims by the Federation of Malaysian Manufacturing (FMM) were “inaccurate” as the staggered increase, once implemented fully in 2027, will still be lower than other Asean ports.
In a statement, he said the increase would be between 5% and 185%.
Subramaniam said Port Klang’s latest tariff revision was based on a comprehensive benchmarking exercise conducted against neighbouring and regional ports.
“Despite this revision, Port Klang’s tariff rates will remain among the most competitive in the region,” he said.
On Saturday, The Borneo Post reported the federation as saying the revised tariff structure of 30%, to be imposed from July 1, could see container handling and storage charges increase by between 197% and 243%.
FMM president Soh Thian Lai said that under the gazetted rates by the PKA, container handling charges for a 20-foot container (TEU) would approach US$120 to US$130 per TEU, similar to rates in Singapore and Hong Kong, but well above Asean neighbours such as Vietnam, Indonesia and Thailand.
Soh said the increase could translate into an additional RM1.125 billion in annual costs to the industry upon full implementation when taking into account the fact that Port Klang handles around 12.5 million TEUs a year.
However, Subramaniam said the claim that the increase would translate into RM1.125 billion in annual costs to the industry was “overstated and based on flawed assumptions”.
“It incorrectly assumes that all container volumes in Port Klang will be subject to the full increase, ignoring key factors such as the phased implementation, free storage periods, and the fact that a large portion of the volume is transshipment cargo, which is priced differently,” he said.
He also said Malaysia’s export competitiveness is not driven by port tariffs alone but by a broader set of structural strengths in response to concerns that the increased rates would erode the country’s competitiveness.
Among these factors were a robust manufacturing base, strategic trade agreements, and a diversified and expanding export portfolio.
“Far from undermining Malaysia’s competitiveness, this tariff is aimed at strengthening Port Klang’s role as a regional logistics hub by enabling continued investment in capacity, technology and sustainability – ultimately supporting the manufacturers, exporters and importers, and further advancing Malaysia in all aspects,” he said.