Identifier
Created
Classification
Origin
08KUALALUMPUR921
2008-10-20 04:03:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kuala Lumpur
Cable title:  

Malaysian Ministry of Transportation responds to UPS

Tags:  ECON ETRD ETRA MY 
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VZCZCXRO9123
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #0921 2940403
ZNR UUUUU ZZH
R 200403Z OCT 08
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC 1785
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
UNCLAS KUALA LUMPUR 000921 

SENSITIVE

SIPDIS

DEPT FOR EEB/TRA

E.O. 12958: N/A

TAGS: ECON ETRD ETRA MY

SUBJECT: Malaysian Ministry of Transportation responds to UPS
concerns about airport access

Sensitive but Unclassified - Not for Internet Distribution

UNCLAS KUALA LUMPUR 000921

SENSITIVE

SIPDIS

DEPT FOR EEB/TRA

E.O. 12958: N/A

TAGS: ECON ETRD ETRA MY

SUBJECT: Malaysian Ministry of Transportation responds to UPS
concerns about airport access

Sensitive but Unclassified - Not for Internet Distribution


1. (SBU) EEB/TRA DAS John Byerly met on October 14 with the
Malaysian Deputy Secretary General of Transportation Long See Wool
to raise the long-standing issue of UPS access to Subang Airport.
Byerly told Long the USG wanted to see US carriers were given the
opportunity to compete on equal footing with Transmile /DHL in
serving the Malaysian express cargo market.


2. (SBU) Byerly pointed out that while Transmile no longer operates
direct service to the U.S., DHL still enjoys competitive advantage
via connections in Hong Kong to the US market, and in the Asian
markets, and thus either UPS should be allowed to operate from
Subang, or alternatively Transmile should be required to move to
KLIA. (NOTE: Operating from Subang can save more than an hour of
transit time during rush hour in Kuala Lumpur over operating from
KLIA.)


3. (SBU) When Byerly mentioned that UPS still awaits a formal
response to the request to move back to Subang, Long said that he
did not realize that there was still an issue after Transmile had
stopped service to the U.S. (NOTE: UPS has sent several letters to
the Ministry of Transportation requesting a response to the
application to operate from Subang.) Long also said that the
"previous Minister probably did not realize the competitive
implications to UPS" when Transmile was given the "temporary" rights
to return to Subang until 2012, presumably because of its existing
investment there.


4. (SBU) Long said that Transmile "had no chance to continue
operating beyond 2012" from Subang, and that Transmile "might" leave
Subang earlier than that. Long also said that GOM needs more space
in Subang for military and other planned purposes (including
maintenance, turboprop, and executive jet operations). He said that
Transmile would meet with the Minister of Transportation probably in
November, and that they would discuss its future plans to move to
KLIA at that time.

RAPSON