PUTRAJAYA, April 22 - The government is currently reviewing a proposal for a gradual increase in port service charges; however, the decision has not yet been finalised and has not been gazetted.

Transport Minister Anthony Loke Siew Fook stated that port charges are regulated by the Port Authority and cannot be raised arbitrarily.

He mentioned that the term 'tariff' is often misunderstood by the public, whereas it refers to the port service charges paid to private operators who hold port concessions.

"Major ports such as Port Klang, Johor, and Penang are managed by private companies. They invest their own funds to upgrade facilities such as cranes, docks, and other infrastructure.

"Therefore, the charges imposed are essential to cover investment and operational costs, but they remain subject to regulation by the Port Authority," he told reporters at a press conference here.

According to Anthony, the last review of port charges was conducted in 2015, which saw an increase of 30 percent implemented in two phases --15 percent in 2015 and another 15 percent in 2018.

The current proposal is for a 30 percent increase to be implemented gradually in three phases --15 percent in the first phase, 10 percent in the second phase, and 5 percent in the third phase.

However, this proposal has not yet been decided and is still undergoing consultation with stakeholders.

"I have not signed and it has not been gazetted.

This is still a proposal. We are examining the feedback because there are concerns if the increase is made abruptly," he said.

Meanwhile, for the long term, the ministry plans to introduce a more transparent and consistent periodic review mechanism.

This includes using indicators such as the Consumer Price Index (CPI) and inflation rates to determine a more stable and less shocking rate of increase.

"We want to establish a more organized system that is accepted by all parties to ensure our ports remain competitive.

"If operators do not receive sufficient returns, they may not invest in increasing capacity. We need to balance market needs and infrastructure development," he said.