PRIME MOVER PARTNERSHIP TO ATTRACT TRAILERS IN THE GROUP OF COMPANIES [SIARAN MEDIA KEMENTERIAN PENGANGKUTAN MALAYSIA]

The Ministry of Transport Malaysia (MOT) is always committed to facilitating the logistics industry so that it can increase efficiency and competitiveness in the industry. This commitment will be manifested with the implementation of policy changes to allow the sharing of prime movers and trailers within the same group of companies.

The move to implement this is in line with the principles of economic partnership and Malaysia’s role through the MOT as a leading country in green logistics initiatives under ASEAN.

The implementation of this policy change will involve the following:

• The parent company’s equity holding in the subsidiary is at least 51% and other conditions related thereto;
• Weight With Load (BDM) of prime movers and trailers allowed for interchanging is subject to the BDM of the semi -trailer or trailer or the lowest Gross Combined Weight (BGK) of the prime mover between the two;
• Enforcement of offenses under the acts involved with this policy change will apply to prime movers only;
• Prime movers or trailers to be shared under a group of companies must be registered with the Land Public Transport Agency (APAD) for application in Peninsular Malaysia and the Commercial Vehicle Licensing Board (CVLB) for Sabah and Sarawak; and
• This policy change is limited to containerized cargo at this time until further notice.

This implementation is seen as an effort to empower the logistics industry in order to optimize existing resources especially in the very challenging conditions at this time. Roughly speaking, it is estimated that the group of companies will be able to save operating costs by 10% to 20% as it can shorten the rotation rate of prime mover movement as well as save 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. This decrease was contributed by the ability of transport companies to optimize existing partnerships without having to increase the number of trailers when this was implemented.

So far, there are 67,613 lorries carrying container cargo in Peninsular Malaysia, 7,278 in Sarawak and 1,467 in Sabah. This implementation will not only benefit transport companies but it will also contribute to increased ecosystem efficiency.

The MOT through the National Logistics Task Force (NLTF) or National Logistics Task Force constantly conducts studies to facilitate and improve existing regulations in an effort 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 (NPGRP).