Prioritise local interest in Labuan Port management takeover call

KOTA KINABALU: The proposed taking over of Labuan port's management should first consider local interest as its priority, failing which, it could be deemed to underestimate and downgrade the ability and credibility of the local business community.

Parti Warisan Sabah vice-president Junz Wong said the move by the newly-established Labuan Port Authority to invite industry players (not from Labuan) on the takeover, without having to assess or evaluate the existing operator's performance was unreasonable and unfair.

The existing operator, Labuan Liberty Port Management Sdn Bhd (LLPM) have managed the port since 1998, without having to rely on government funding and a regulatory body of the port authority.

“We are of the view that the setting up of Labuan Port Authority is good, but getting outsiders, not from Labuan or Sabah, to take over the port management is inappropriate,” he said.

Junz said there are many successful industry players from the two states who are able to manage a port efficiently.

“It is about paving the way for our local business community to deliver the expectations, it is wrong and inappropriate to be too judgmental and say that our local players are not up to the mark and unable to take the port to international standards,” he reasoned.

Junz said the Labuan member of parliament, being the deputy chairman of LPA, should firstly help ensure that local interest is safeguarded in this issue.

“Although Labuan is now a federal territory, geographically, it is some distance away from the peninsula. As such, the local business community with proven track records should be given a chance,” he said.

Junz pledged that once Warisan has won the Labuan seat in the 14th general election (GE14), the party, whose branch was established at the end of last year on the duty-free-island, would ensure that Labuan players will be given priority and their interests protected.

Tanjung Piai, Johor MP, Datuk Seri Wee Jeck Seng, who was appointed chairman of LPA was earlier reported (in May, last year) as saying that the port's long-serving operator, LLPM would continue to operate the terminal and that the port authority would see if there was a need to review the concession.

Wee said LPA would appoint a consultant to help improve the port's operations, and added that the port authority would also set a time frame for improvement on the port's performance by setting a key performance index (KPI). However, as of yesterday, neither a consultant had been appointed nor a performance assessment have been conducted.

Crying foul over the decision, a LLPM spokesman was reported as saying that the company had invested millions of ringgit in terms of assets since it began operating the port over two decades ago, including opening an inland depot to ease congestion at the port's yard and building several warehouses outside of the terminal.

He said, the company had increased the twenty-foot equivalent unit (TEUs) (containers) handled since it ran the port's operations and had developed an in-house information technology system for cargo tracking, and is recognised by the Royal Malaysian Customs Department in curbing smuggling.

“Despite being given a short-time (year to year and month to month basis) concession of running the port by the government, LLPM is still able to manage the port efficiently,” he said.

In an earlier news report, LLPM had proposed a privatisation exercise of the port management to the Economic Planning Unit (EPU), but was turned down due to the absence of a regulatory body or port authority.

“Now, Labuan port has a regulatory body or port authority, but we, as the existing operator, have not been given opportunity to undergo a performance assessment,” the spokesman lamented.