KOTA KINABALU: The congestion at the main shipping port here has been brought to the cabinet on Wednesday, said state Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.
He said this in response to the numerous complaints from industries in the state.
Industrial stakeholders in Sabah have expressed concern over the congestion surcharge that shipping firms were planning to impose effective July 16.
They warned that the action could significantly impact businesses, and the cost would eventually be passed on to consumers.
"The cabinet understands the urgency of this situation and has mandated the state secretary to lead efforts in addressing it promptly.
"A meeting has been held recently with stakeholders, including the port operator," said Phoong.
He said the negative impact of prolonged congestion and surcharge could affect the state's industrial sector and overall economy.
Recently, Parti Warisan Sabah vice-president Datuk Wong Hong Jun asked whether the state government had prior knowledge or given approval to the surcharge.
Malaysia Shipping Corporation Sdn Bhd and MTT Shipping Sdn Bhd recently announced the imposition of a congestion surcharge due to significant delays in vessel turnaround times, which was affecting the entire supply chain.
The proposed surcharge ranged from RM500 for a twenty-foot equivalent unit (TEU) to RM1,000 for 40-feet units, with an additional charge for shipper-owned container shipments.