Hornbill Unleashed

August 7, 2017

Putrajaya to decide if cabotage should return after one-year trial

Filed under: Politics — Hornbill Unleashed @ 8:02 AM

File picture shows a container yard at North Port in Port Klang. — Reuters picThe Ministry of Transport (MoT) will review whether or not to continue exempting Sabah, Sarawak and the federal territory of Labuan from the cabotage policy after a one-year trial period.

The Borneo Post reported that Putrajaya will observe the decision’s impact first, after a discussion by Sarawak Ministry of Infrastructure Development and Transport with Transport Minister Datuk Seri Liow Tiong Lai on Friday.

Those present at the discussion included Sarawak Deputy Chief Minister Tan Sri James Masing, Assistant Minister of Coastal Road Datuk Julaihi Narawi, and Assistant Minister of Transportation.

In May, Prime Minister Datuk Seri Najib Razak announced the cabotage exemption for Sabah, Sarawak and Labuan starting June 1.

The same month, MoT had announced a task force to assess the impact of the decision.

Masing had in June said the trial period would just be for six months, but MoT later clarified that there was no time frame.

Under the existing cabotage policy, foreign ships are allowed to drop cargo at any port in the country but are not allowed to move them within the country. If a box is unloaded at a Sabah port, only a domestic freight company can then move it to Port Klang or another port outside the state, and vice versa.

Local shipping companies have voiced out their grouses that the move will affect their rice bowls, with some contemplating shifting their business to Singapore that does not impose a tax on transhipment goods.

Source : The Malay Mail Online



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