Move to cut free storage time at Klang faces further delay

The Port Klang Authority's (PKA) move to reduce the free storage period for full container load containers at Northport and Westports from five days to three, looks set to be delayed again, despite assurances to the contrary, Business Times reported.

On December 31 2009, PKA had issued a directive that it would go ahead with the implementation of the decision to reduce the period in which containers can be stored at Port Klang for free to three days or more specifically, 72 hours.

A three-month grace period, which ends on March 31, however, was given to help players in the shipping industry prepare for the transition phase.

During the grace period, shippers (importers and exporters) are charged for storage only after the fifth day.

PKA chairman Datuk Lee Hwa Beng said the regulator is now rethinking its move to implement the ruling at the end of March, following objections from stakeholders.

An announcement on the issue is expected to be made this week.

One possibility being discussed is to have the free storage period shortened to 96 hours, rather than 72 hours as indicated in the circular issued on December 31.

The implementation of the new law has been postponed several times in the last eight years, following objections from some players in the shipping community in Port Klang who feel they were not quite ready yet.

It was reported that 80 percent of the containers in Port Klang could be cleared within three days, but the remaining 20 percent, or 10,000 containers, could not be done within the short period.

(Source: Cargo News Asia)