Johor floods take toll on transport sector

[ 15-01-2007 ]

Johor floods take toll on transport sector

Saturday January 13, 2007

Johor floods take toll on transport sector

By ZAZALI MUSA

Lim Han Weng

JOHOR BARU: Early estimation showed that last month's major floods in Johor caused
RM100mil in losses and damage to public infrastructure such as roads, bridges and
schools. The figure is expected to rise when economic activities such as agro-based,
commercial plantations, manufacturing and services are taken into account later. Among
the services badly affected by the December floods were the Johor-based goods
transportation service providers. "The transportation industry in Johor is losing
millions of ringgit due to the floods," said Yinson Holdings Bhd managing director Lim
Han Weng. He said small-time transport providers suffered the most in the disaster,
especially those who totally depended on servicing Johor routes. Lim said these
companies would need time to resume their services or might even have to wind up their
businesses after the floods. He said even a company like Yinson, which was among the top
five transportation service providers in the country, was not spared as the company's
fleet – including lorries and prime movers – could not move because drivers were not
available during the period. He said about 60 drivers came from Batu Pahat and Kota
Tinggi and had to return to their hometowns which were badly affected by the floods to
help clean their houses and to be with their loved ones. Furthermore, he said, Yinson
could not service its clients in Batu Pahat, Kluang and Kota Tinggi as these areas were
cut off. Many factories, especially in Kota Tinggi and Kluang, had to temporarily stop
production, he said, adding: "Others not affected also had to close shop as transporters
could not deliver raw materials to them." Teh Kee Sim

He said many manufacturers were in a Catch-22 situation as their export schedules were
disrupted and some ships had to leave without the goods as they had their own schedules.
Association of South Johor Small and Medium-sized Enterprises president Teh Kee Sim
lauded the RM500mil special loans for businesses affected by floods. However, he said,
the loans were insufficient and he hoped the Government would pump in more money,
probably RM2bil to RM3bil, so that more companies would benefit from the scheme.
Malaysian Aquarium Fish Association secretary Lee Ewe Tong said 60% to 70% of the 300
ornamental fish breeders in Johor were hit by the floods. The worst affected ponds were
those in Jemaluang, Kulai, Senai and Layang-Layang, he said, adding that the country's
ornamental fish industry would be badly affected as breeders from Johor accounted for
about 50% of total exports. He said Malaysia, which was among the top 10 producers of
ornamental fish in the world, would need at least six months to get the industry back on
it feet.
http://biz.thestar.com.my/news/story.asp?file=/2007/1/13/business/16548265&sec=business