MMC told to defer port consolidation

The decision comes after requests from shippers and manufacturers operating in Pasir Gudang, Tampoi, Tebrau and the surrounding areas.

The Cabinet has asked the management of the Port of Tanjung Pelepas (PTP) and Johor Port to defer their consolidation plan, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said.

The decision was made in response to requests from shippers and manufacturers operating in Pasir Gudang, Tampoi, Tebrau and the surrounding areas.

Mustapa held a discussion with the shippers and manufacturers, who asked for container operations to remain at Johor Port instead of being shifted to PTP under the consolidation plan.

"They told me that their operation costs will drastically increase if they have to transport their goods all the way to and from PTP.

"I had recently conveyed their wishes to the Cabinet and it was decided that the status quo of the ports should remain as it is," Mustapa said after visiting port facilities at Tanjung Langsat, near Pasir Gudang, in Johor yesterday.

The port authorities and Johor branch of the Federation of Malaysian Manufacturers (FMM), which led the protest against the consolidation plan, agreed in November last year to leave the final decision to the Cabinet.

The consensus was reached after a two-hour meeting between PTP and FMM Johor at the Johor Port office in Pasir Gudang.

Both PTP and Johor Port are owned by MMC Corp Bhd.

MMC has said that the consolidation is necessary as Johor Port is congested and operating at full capacity, with no room for expansion.

On his visit to Tanjung Langsat, Mustapa said rapid development in the area was drawing the interest of investors.

The area, which caters mostly for capital-intensive investments in manufacturing and oil and gas industries, has attracted 30 companies, with investments worth RM20 billion.

By Shahrum Sayuthi