Ministry introduces new policy to boost efficiency of logistics companies

PETALING JAYA Tuesday, 07 September 2021

Logistics companies that have interlinked shareholding between them can now share prime movers and trailer beds as part of the Transport Ministry’s move to introduce more efficiency into the sector.

The Transport Ministry is now allowing transport companies to have greater flexibility in moving containers by allowing sister companies within the same group to interchange their prime movers and trailers (and semi-trailers) in response to changing market demands.

Prime movers and trailers are costly pieces of equipment that are subject to individual licensing, which spell out who can use them on the roads.

“The allowed weight should be the lowest weight between laden weight (BDM) of the semi-trailer or trailer or gross combined weight (BGK) of the prime mover,” said Transport Minister Datuk Seri Dr Wee Ka Siong in a statement yesterday.

To share equipment, the parent company’s equity holding in the subsidiary must be at least 51%, and this equipment must be registered with the Land Public Transport Agency (APAD) in Peninsular Malaysia, or with the respective Commercial Vehicles Licensing Board of Sabah or Sarawak.

Any offences under the laws relevant to this policy change will apply to prime movers only, which have their own number plates.

“The Transport Ministry remains committed to improving the logistics industry through greater efficiency and competitiveness.

“As part of this commitment, MOT has decided to allow the use of prime movers and trailers shared under a single group of companies, and this is in line with the principle of economic partnership alongside Malaysia’s role, through MOT, as a leading country for green logistics initiatives in Asean,” said Dr Wee.

He added that this policy would empower the logistics industry in order to optimise existing resources, especially in response to currently challenging economic conditions.

“It is estimated that companies will be able to reduce operating costs by between 10% and 20% by shortening the rotation speed of prime movers and saving time.

“In addition, it will also help reduce the cost of doing business as transport companies will be able to reduce capital expenditure and operating costs,” he said

To date, there are 67,613 lorries that are carrying container cargoes in Peninsular Malaysia, with another 7,278 and 1,467 in Sarawak and Sabah respectively.

“MOT, through the National Logistics Task Force, regularly conducts studies to facilitate and improve existing regulations to ensure the industry is highly competitive. Studies on the implementation of this matter will be conducted from time to time in accordance with the National Policy on Good Regulatory Practice,” he added.

MOT’s move has been welcomed by industry players, with the Association of Malaysian Hauliers (AMH) praising the initiative.

“AMH has explained and applied for this long ago, with the reasons understood and finally accepted by MOT,” said Soo Chee Yeong, president of AMH.

“This is great news for the haulier industry as it really helps some AMH members a lot. With more than 400 haulier companies nationwide, this practice of sharing equipment will also encourage mergers and acquisitions within the industry to further help local players to grow for better performance and enhance the Malaysia logistics services.”

Credit: Tuesday, 07 Sep 2021

Related posts

Special offers

Custom Transport

Complex logistic solutions for your business

View details

Warehousing & Storage

Careful storage of your goods

View details