Bintulu Port In News

Bintulu port tariff revision in sight

25 January 2016

KUCHING: A tariff revision is on the cards for terminal handling of containerised and general cargo at Bintulu Port in Sarawak.

According to Bintulu Port Holdings Bhd (BPHB) chief executive officer Datuk Mior Ahmad Baiti Mior Lub, the company’s application to the federal authorities for an upward revision of the port’s containerised and general cargo tariffs is in the final stages of approval.

“The Transport Ministry has called for a meeting of all parties concerned this week. I believe this will be the final meeting (on BPHB’s request to review the tariffs),” he told StarBiz.

BPHB had early last year submitted its proposals on the tariff revision to Bintulu Port Authority, which was subsequently sent to the Federal Government.

The port’s container cargo tariffs were last revised in 1999 while the general cargo tariffs have remained unchanged since 1983. It is understood that BPHB has sought an upward revision of between 20% and 30%.

BPHB, which is the port service operator of Bintulu Port, said a revision of the cargo tariffs as long overdue because the operational cost in handling the containerised and general cargo had increased significantly over the years.

Bintulu Port’s total cargo throughput rose by 3.63% to 45.4 million tonnes in 2014 from 43.8 million in 2013. Its container throughput jumped by 8% to 270,495 TEUs (20-foot equivalent unit).

BPHB’s application for a revision comes in the wake of the changes in Port Klang. Last August, the ministry approved Port Klang’s Westports and Northport terminals to hike their container tariffs in two phases, with the first phase in September last year and the second from Sept 1, 2018. The revision is on an average increase of 15% for each stage.

If its application is approved, Mior Ahmad expects it would take a few months for the new tariffs to be implemented.

Commenting on a five-year strategic plan to expand Bintulu Port which was unveiled last year, he said the implementation of some of the proposed six projects might be deferred due to a slight drop in the port’s cargo throughput last year.

The proposed projects involve the conversion of an existing 300m general cargo wharf for container operation and a new 300m bulk fertiliser wharf at second inner harbour. Other proposed developments include a new 150m small barge berth at the edible oil terminal, liquefied natural gas berth No 4, a new 400m general cargo wharf and a proposed development of a supply base terminal (both at the second inner harbour).

On the Samalaju Port project undertaken by BPHB to cater for energy-intensive industries in Samalaju Industrial Park, Mior Ahmad said the progress of some work packages were behind schedule of between four and five months due to under-performance by the contractors. “With a catch-up plan in place, we expect to complete all the work packages by the end of this year.

On-going work packages in various stages of implementation include the RM437mil capital dredging and reclamation project and breakwater and associated works (RM306mil).

Other work-in-progress includes the development of a wharf and its associated works (RM311mil), the setting up of an electrical works and navigation aids system (RM47.5mil), the installation of a conveyor system facilities (RM157mil) and the construction of an administrative building and associated works (RM40.4mil).

The new port’s interim facilities have been in operation since April 2014. Comprising two wharves and a roll-on, roll-off ramp, the facilities are capable of handling up to four million tonnes of cargo a year. Industries currently in operation in Samalaju Park include aluminium and manganese smelters.

“The new port, which caters for handymax and handysize vessels, is expected to start commercial operation in January 2017,” said Mior Ahmad. It may handle six million tonnes of cargo in the first year of full operation.

Source: The Star
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