Multimodal Transport

Malaysia uses containers for the maritime part of trips, loading and unloading them in the ports rather at the origin and destination of their cargo. This eliminates the main cost-saving advantages of container use. Countries that can best encourage door-to-door movement of containers using multimodal transport will be best equipped to compete and to bring trade benefits to their more remote areas, such as between West Malaysia and East Malaysia. To achieve this integration, Malaysia needs to

·         Match inland with maritime infrastructure.

An important reason that containers do not move inland from container ports is that road and rail 

Infrastructures lack the right carrying capacity and vehicle dimensions for the transport of loaded containers. This scenario can be seen in East Malaysia.

·         Simplify trade documentation.

Examples include the use of through-waybills and single invoices for all modes. In customs clearance times, the economy of Malaysia is quite similar to those of other developing countries but if taken together; developing countries are significantly slower that developed countries. Another regulatory change – to allow containers to be cleared for tariffs, customs, and health and taxation charges at inland locations away from the ports – would help reduce port congestion but could raise additional security concerns.

·         Develop an efficient freight forwarding industry.

Third-party logistics or 3PL is not a well-advanced concept in Malaysia. In industrial countries, almost a third of logistics turnover is contracted to 3PL providers, but even in industrialized Malaysia, barely 10 percent of trade-related transport services are provided in this way. Progression to the earlier stage of second-party logistics or 2PL – which companies unify their internal transport and warehousing functions and create their own internal logistics departments – in Malaysia is still underway

·         Develop effective communications systems.

So that freight forwarders can take advantage of the shipping alternatives available and keep their clients aware of the status and location of their freight

Even the least accessible countries in this region have improved the quality and scope of their information systems – such as Thailand, Vietnam and Indonesia – but few have been able to develop freight forwarding agencies that perform as well as those in the more accessible and trade-open countries, such as Singapore