13 December 2019
The Transport Ministry said it will review the handling charges for e-commerce parcels imposed by the airport operator next week, in a bid to make Malaysia more competitive in the industry.
Minister Anthony Loke Siew Fook said the handling charges are constantly brought up by logistics players.
“Right now, when we conduct e-commerce in KLIA (Kuala Lumpur International Airport) or in any airport in Malaysia, for every parcel that comes out from the airport, there is a charge of RM5 imposed by the airport operator.
“We want to re-look that and we want to review, and we are in discussions with MAHB (Malaysia Airports Holdings Bhd) on how to make that more streamlined and more competitive,” he told media after the launch of the GTR Air Cargo Hub here today.
Also present were AirAsia Group chief executive officer (CEO) Tan Sri Tony Fernandes, AirAsia Group president (Airlines) Bo Lingam, SATS president and CEO Alex Hungate, GTR CEO Kevin Chin and AirAsia Malaysia CEO Riad Asmat.
Loke said the Government plans to review the handling charges to reduce the overall cost of every parcel.
“The nature of e-commerce (is that) sometimes a parcel is not very high in value. For example you buy a T-shirt which might only cost you RM30-RM40.
“By the time you buy the T-shirt and it reaches here and is posted to you, if the charges are too high then that makes your whole e-commerce activity not too competitive,” he said.
Meanwhile, Loke urged logistics companies to look into the potential of Sabah, saying there is strong demand for its seafood from China and Hong Kong.
“We see a lot of potential in Sabah, and if we can develop air cargo facilities in Kota Kinabalu and Sandakan, I think it can go a long way in terms of exporting more seafood from Sabah to the rest of the world.
“It is a very lucrative sector that we have to tap into,” he said.
On the launch of the GTR Air Cargo Hub, Loke expressed hope it would help to further elevate KLIA and klia2 as a key logistics gateway, in line with the ministry’s National Logistics Master Plan to develop Malaysia as a logistics hub.
GTR (Ground Team Red), a joint venture between AirAsia Bhd and SATS Ltd, operates an air cargo hub at the KLIA Air Cargo Terminal 1 (KACT1). Located at the former low-cost carrier terminal in Sepang, the facility spans 93,000 sq. ft. and was built at a cost of RM23 million.
The new air cargo hub enables GTR to expand its capabilities by handling both narrow- and wide-body aircraft cargo operations, and its motorised material handling system facilitates efficient handling of Unit Load Devices (ULDs).
The new air cargo hub also has a purpose-built 10,000-sq. ft. cold-chain facility for specialised handling of perishable and pharmaceutical products as well as dedicated zones for dangerous goods, pets and valuable cargo.