Freight forwarders, transportation companies and importers will know by December whether a new operator will take over the Labuan port operations, or if this will revert to the marine department's jurisdiction.

Responding to a situation that has left port users unhappy, Labuan Corporation chairperson Suhaili Abdul Rahman told malaysiakini today that the operations of Liberty Wharf may revert to the marine department.

"The Economic Planning Unit in the Prime Minister's Department may decide on the question of privatisation and if there is justification for this, the government will act accordingly," he said.

Since 1998, Liberty Port Management Sdn Bhd - the investment arm of the Labuan branch of the Malaysian Malay Chamber of Commerce - has provided services at the port but its charges have been described as "excessive".

Suhaili, who is also member of Parliament for Labuan, said he would raise this matter when Parliament reconvenes later this month, to query if port charges can be raised without proper authority and official approval.

Liberty Port Management managing director Mohd Alias Abdul Rahman said when contacted that he has not received notice to stop providing services or to hand over the operations to another party.

He also said there has been no indication that the three-year agreement, which is subject to two years extension, will not be renewed.

Asked to comment on speculation on a takeover by the marine department, he said the agency serves as a regulatory body and does not own equipment and employ workers to provide port services.

He also said the company has implemented a proper system and that the current service charges were justified, but conceded that being aware of unhappiness over the quantum.

Hidden agenda alleged

Substantiating complaints, Labuan Port Users Action Committee chairperson Anthony Foo produced a copy of a marine department letter to the company, directing it not to exceed the terms of the lease agreement in imposing charges.

Mohd Alias countered this, saying that the charges are in accordance with the approved tariff. He in turn accused the port users of exploiting the issue for their own agenda.

An importer and exporter, KS Pua, said high port charges would only be passed on to consumers, thereby adding to the high cost of living.

"The scope of the port operations is small. No private operator can make money except by imposing high charges. This is exactly what is happening now," he said.

"Ultimately, this will render Labuan's status as a duty-free port meaningless because the prices of consumer goods - except for beer, cigarettes and vehicles - will be similar to that in the rest of the country except Langkawi island."

TONY THIEN is malaysiakini's Sarawak-based stringer.