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MOT gives nod to sharing of prime movers, trailers within group of companies

Photo Credit: Suhaimi Yusuf / The Edge

The Transport Ministry (MOT) has allowed the use of prime movers and trailers shared under a single group of companies as part of its commitment to improving the logistic industry through greater efficiency and competitiveness.

In a statement today, MOT said the policy, among others, involved that the parent company’s equity holding in a subsidiary must be at least 51%, subject to other related conditions, and only applicable to containerised cargo until informed otherwise.

MOT said the prime movers or trailers to be shared must be registered with the Land Public Transport Agency (APAD) for application in Peninsular Malaysia and the respective Commercial Vehicles Licensing Board of Sabah and Sarawak.

The interchanging of prime mover and trailer 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, it said.

“This policy implementation is aimed at empowering the logistics industry in order to optimise existing resources, especially in response to the current challenging economic conditions,” said MOT.

The ministry added that companies would be able to save time and reduce operating costs by between 10% and 20% by shortening the rotation speed of prime movers.

“It will also help reduce the cost of doing business as transport companies will be able to reduce capital expenditure and operating costs.

“This reduction is contributed by the ability of transport companies to optimise existing partnerships without having to increase the number of trailers when this is implemented,” it said.

To date, MOT said there are 67,613 lorries that are carrying containerised cargoes in Peninsular Malaysia, and another 7,278 and 1,467 in Sarawak and Sabah respectively

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