ID :
133246
Sat, 07/17/2010 - 09:11
Auther :
Shortlink :
https://oananews.org//node/133246
The shortlink copeid
NATIONAL SHIPPING POLICY GIVES PRIORITY TO DOMESTIC SHIPPING COMPANIES
By Nur Adika Bujang
KOTA KINABALU (Malaysia), July 16 (Bernama) -- The National Shipping Policy,
which gives priority to domestic shipping services, is actually to protect the
nation in the long run, says Deputy Minister of Transport Abdul Rahim Bakri.
If the Malaysian government allowed foreign shipping lines to dominate or
control the country's transportation system, "our local shipping companies will
go bankrupt and eventually the nation will have to depend on foreigners
forever," he said.
"Definitely this is not good for the economy and our country. If they
succeed in dominating our territoral waters, one day they can form an oligopoly
market or a cartel and fix the service charges to their whims and fancies.
"When this happens, the objective to reduce shipping service rates will not
materialise after all," he told BERNAMA Friday.
Abdul Rahim was asked to comment on the confusion among certain quarters in
Sabah that the government was neglecting domestic shipping companies' interests
by implementing the Cabotage Policy which was not benefiting the companies.
Under the Cabotage Policy implemented on Jan 1, 1980, domestic trading
between two domestic ports can only use the services of local shipping lines in
order to reduce prices of consumer goods.
However, several quarters in Sabah, including the Sabah Manufacturers
Federation, had called for the policy to be liberalised or scrapped as domestic
shipping lines were not benefiting.
Abdul Rahim said actually the hike in prices of consumer goods was due to
several factors including raking in of excessive profit by certain groups and
the problem of inefficient loading and unloading services at ports.
Exorbitant marine insurance fee, land transport cost and economy of scale
were the other reasons, he said.
Abdul Rahim said many of the companies that received incentives under the
National Shipping Policy are shipping companies from Sabah and Sarawak like
Johan Shipping, Hubline, Shin Yang and Chong Fui Shipping.
-- BERNAMA
KOTA KINABALU (Malaysia), July 16 (Bernama) -- The National Shipping Policy,
which gives priority to domestic shipping services, is actually to protect the
nation in the long run, says Deputy Minister of Transport Abdul Rahim Bakri.
If the Malaysian government allowed foreign shipping lines to dominate or
control the country's transportation system, "our local shipping companies will
go bankrupt and eventually the nation will have to depend on foreigners
forever," he said.
"Definitely this is not good for the economy and our country. If they
succeed in dominating our territoral waters, one day they can form an oligopoly
market or a cartel and fix the service charges to their whims and fancies.
"When this happens, the objective to reduce shipping service rates will not
materialise after all," he told BERNAMA Friday.
Abdul Rahim was asked to comment on the confusion among certain quarters in
Sabah that the government was neglecting domestic shipping companies' interests
by implementing the Cabotage Policy which was not benefiting the companies.
Under the Cabotage Policy implemented on Jan 1, 1980, domestic trading
between two domestic ports can only use the services of local shipping lines in
order to reduce prices of consumer goods.
However, several quarters in Sabah, including the Sabah Manufacturers
Federation, had called for the policy to be liberalised or scrapped as domestic
shipping lines were not benefiting.
Abdul Rahim said actually the hike in prices of consumer goods was due to
several factors including raking in of excessive profit by certain groups and
the problem of inefficient loading and unloading services at ports.
Exorbitant marine insurance fee, land transport cost and economy of scale
were the other reasons, he said.
Abdul Rahim said many of the companies that received incentives under the
National Shipping Policy are shipping companies from Sabah and Sarawak like
Johan Shipping, Hubline, Shin Yang and Chong Fui Shipping.
-- BERNAMA
