Labuan port operator claims not consulted over tender issue

LABUAN: The long-serving Labuan port operator, Labuan Liberty Port Management Sdn Bhd (LLPM), is questioning the sudden decision of the newly-established Labuan Port Authority (LPA) to tender out the management and operation of the terminal, claiming that it has not been made aware of the move.

The operator claimed that it was not consulted prior to the issuance of the tender, and felt that it had been unfairly treated by the newlyestablished regulatory body.

The Notice of Pre-qualification of Companies for Operation and Facility Management of Labuan Liberty Terminal in FT Labuan was published in a local daily on July 10, inviting interested and capable companies to undertake the operation and management of the terminal.

And, on July 18, a number of companies from Sabah and Peninsular have conducted visits to the port in response to the tender notice.

LPA chairman Datuk Wee Jeck Seng, and his deputy, who is also the Labuan member of parliament, Datuk Rozman Isli, had on May 5, jointly issued a press statement over the status of the existing operator, confirming that the long-serving operator would continue to manage and operate the port and that the authority (LPA) would see if there is a need to review the concession.

Wee had also said that the LPA would set a time frame to assess the port’s performance by setting a key performance index (KPI). They also confirmed that the LPA would soon appoint a consultant to help oversee improvements to be made at the port.

LLPM is the first operator of the terminal, and has made remarkable achievements, having received a number of mother foreign vessels and handled inbound and outbound cargoes smoothly and systematically.

According to LLPM’s source, the company has invested millions of ringgit in terms of assets since it began operating the port in 1998, including the opening of an inland depot to ease the congestion at the port yard and the construction of several warehouses outside of the terminal.

Besides the increase in the number of twenty-foot equivalent unit (TEU) or containers handled since it undertook the port operation, LLPM has developed an in-house information technology (IT) system for cargo tracking. This system had been recognised by the Royal Malaysia Customs Department to help in resolving the smuggling issue.

Local chambers of commerce have also expressed their disagreement over the sudden tender process, describing it as an unethical move since it was made without consulting the existing operator.

The Labuan Chamber of Malay Entrepreneurs (DUML) is also of the view that the LLPM, being a local (Labuan) company spearheaded by local, must be given the chance to continue its service for the first term of at least five years since the LPA had become the port regulatory body.

“LPA probably do not know or is not aware of the service rendered by the existing operator, LLPM, as the authority was only established in February this year. Give them a chance to perform, if they fail, only then LPA can tender out the operation and management,” it said.

The chambers have described the tender process as a ‘rush’ decision as there was no consultation with the existing operator.

The LPA could not be reached for comment.