Westports: Container hike delayed again to Nov 1

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This article first appeared in The Edge Financial Daily, on September 23, 2015.


KUALA LUMPUR: There's another delay in the container tariff hike at Port Klang.

In a filing with Bursa Malaysia yesterday, Westports Holdings Bhd said the implementation of the container tariff hike has been delayed for the second time to Nov 1 this year instead of Oct 1.

The Port Klang Authority has issued a letter to inform Westports  on the delay. However, the regulator did not reveal the reason for the second delay.

The implementation was first scheduled for Sept 1. It was then postponed to Oct 1.

The transport ministry on Aug 5 approved a container tariff revision to be implemented in two phases, with an average increase of 15% each.

Phase one of the revision was initially announced to be effective by Sept 1, and the second hike would be implemented three years later on Sept 1, 2018.

The revised tariff encompasses container terminal handling charges for import, export, transshipment, shifting and storage charges for container, as well as handling charges for heavy lift or uncontainerised cargo.

It was reported the last revision of the container tariff at Port Klang was implemented about 14 years ago.

The tariff hike is expected to contribute to a 12% and 13% increase in Westports’ earnings for financial year 2016 forecast (FY16F) and FY17F respectively, according to a note by AmResearch Sdn Bhd on Aug 3.

Westports shares closed two sen or 0.46% lower at RM4.30 yesterday, with a market capitalisation of RM14.63 billion.