PETALING JAYA: Greater flexibility in allowing the sharing of prime movers and trailer beds among a parent company and within its subsidiaries will boost the efficiency and competitiveness of hauling firms, says the Malaysia Trucking Federation.

       Its president Datuk Ng Koong Sinn described the move by the government as a “proactive step” with the nation’s economic recovery efforts.

       “It will certainly be beneficial, especially for bigger hauling companies that have larger trailer fleets and equipment.

       “The move will increase efficiency and also save costs and time, which is crucial for hauliers,” he said.

       Ng said the sharing of prime movers and equipment among a parent company and its sister companies would also help to reduce capital expenditure and operational costs.

       “A prime mover can range above RM500,000 if it is an imported continental trailer while a container costs between RM70,000 and RM80,000,” he added.

       Ng said allowing the prime movers to share the permits among the related companies could avoid trouble with the stipulated guidelines.

       “Eligible hauliers will be able to transport goods with the same permit without fear of being penalised,” he said.

       Ng said the move would likely see mergers and acquisitions involving smaller hauling companies in the near future.

       He said allowing sister companies within the same group to interchange their prime movers and trailers including semi-trailers was timely in anticipation of the reopening of borders in coming months.

       “Regional trade and economic activity will increase once the borders are fully reopened,” he said.

       Such flexibility given to hauliers would help them to remain competitive, he added.

       Ng said there would also be long-term benefits once the Belt and Road Initiative was fully developed.

       On Monday, Transport Minister Datuk Seri Dr Wee Ka Siong announced that transport companies would be given greater flexibility in moving containers in response to changing market demands.

       He said the initiative was estimated to reduce operating costs by between 10% and 20% by shortening the rotation speed of prime movers, and saving time.

       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 in Peninsular Malaysia, or with the respective Commercial Vehicles Licensing Board of Sabah or Sarawak.

       The flexibility will cover transportation of goods where 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.

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

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

       The Association of Malaysian Hauliers praised the initiative, with its president Soo Chee Yeong saying this would further help local players grow for better performance and enhance the country’s logistics services.

       Soo said there were more than 400 haulier companies nationwide and that the practice of sharing equipment would also encourage mergers and acquisitions within the industry.

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