Road Logistics : CONTAINER HAULIERS IN MALAYSIA OPERATES TO LOOSE REVENUE?!

Association of Malaysian Hauliers (AMH) claims that their 80 members that represents 80% out of the total market share face the estimated potential loss of RM 500 million of revenue in an operating year. Container haulier business in Malaysia is valued at about RM 225 million a month or RM 2.7 billion per annum with 5,000 container trucks in service but conversely, there’s a revenue leakage of RM 39.5 million a month. The main reason is because of traffic congestion issues which reduces the productivity that makes up losses up to RM 432 million. While the second reason is the scarcity of diesel at the petrol stations mainly, at Port Klang as well as Penang Port that leads to losses up to RM 42 million per annum. The traffic congestion at Port Klang is a result of ongoing construction of a bridge linking Northport and Southpoint that is anticipated to prolong till October 2014. On the other hand, shortage of subsidized diesel quota of RM 2.00 per litre instead of market price of RM 2.40 or RM 2.60 is often the cause. 1.5 million litres of diesel is consumed daily by the operating container trucks. The recent hike in the haulage rates in Malaysia is not a solution for the problem and is not able to recover the losses made or expected. The increase in ratesonly helps to recoup the rise of fuel prices.

With such barriers and the export and import economy at stake, it is crucial to look into measures that will resolve congestion problems not just for a short term but for at least 10 years from now. Of course, firstly, the bridge construction should be completed earlier than scheduled dates. Also there is a need for additional express road lanes especially for container trucks to bypass the congestion at Port Klang leading them to the respective ports just like the supplementary road lanes for public transport in the cities. Should the idea of constructing the bridge quickly or building supplementary roads may take time and cost a lot of money, perhaps, Keretapi Tanah Melayu Berhad (KTMB) may have just the right solutions. Yes, there can be a container terminal built away from the port area while KTMB provides a feeder services from the terminal to the ports. This will also assist KTMB to increase its value and revenue. Anyway, KTMB is believed to have the infrastructure and resources to cater to such requirements. As for the subsidized diesel issue, there already a proposal made by AMH to Ministry Of Finance, Malaysia (MOF) as well as Domestic Trade and Consumer Affairs Ministry (KPDNKK) to allow skid tanks filled with diesel to hold in reserve at their premises or depot instead of queuing at the petrol kiosk around the port area. Of course, the check and balance can be implemented at the same time avoid misuse of such facilitations.

 

There should be proactive measures taken immediately especially when the country’s trade is at stake. It would be the best if we are able to plan ahead. We just hope that reputation tarnishing incident of port hauliers strike at Port Klang in the year 2012 does not re-occur (see Video 1). We also do not wish to see container trucks to be driven recklessly just to meet the delivery timeline or to draw level to next trip as it may increase the number of road accidents (see Video 2).  

Video 1 : Container Haulier Strike at Port Klang ( https://www.youtube.com/watch?v=QjNB2y9iAgM )

Video 2 : Fast & Reckless Driver ( http://www.youtube.com/watch?v=0BMBWKHpYXM )

Thank you for your time.

Best regards,

Mahinder Singh Malhi