Bintulu Port crucial asset in Sarawak’s economy

An aerial view of Bintulu Port.

KUCHING: Bintulu Port, which is set to come under the Sarawak government’s administration soon, will serve as a crucial asset in completing the state’s economic ecosystem.

The port will play a pivotal role in the oil and gas industry, its midstream and downstream activities, edible oils, the proposed supply base, carbon capture utilisation and storage and the production of hydrogen and other biofuels, said Sarawak Deputy Minister for Infrastructure and Port Development, Datuk Majang Renggi.

The Sarawak government via the State Economic Development Corp is currently developing the Sarawak petrochemical hub in Bintulu.

The decision to hand over Bintulu Port to the Sarawak government by June 30, 2024 was finalised during the Federal-State Joint Committee meeting here last week.

Transport Minister Anthony Loke and Sarawak Deputy Premier and Minister for Infrastructure and Port Development, Datuk Amar Douglas Uggah Embas, co-chaired the meeting.

To facilitate the smooth transition in regulatory functions of the Bintulu Port, the Transport Ministry will table a Bill to repeal the Bintulu Port Authority Act 1981 in Parliament.

The Sarawak government, on the other hand, will establish the Bintulu Port Authority (Sarawak) under the Sarawak Port Authorities Ordinance 1961 to ensure that the operation of the port would not be affected and disrupted during the change of status, said a joint press statement from the two ministries after the meeting.

A memorandum of understanding will be signed next month on the handover of Bintulu Port to the Sarawak government.

Bintulu Port Sdn Bhd, which is a wholly-owned subsidiary of Bintulu Port Holdings Bhd (BPHB), operates the largest container port in Sarawak and Sabah, with capacity to handle 500,000 twenty-foot equivalent units or TEUs of containers per annum.

As Malaysia’s sole liquified natural gas (LNG) export gateway, Bintulu Port is currently one of the largest LNG export terminals in the world with a capacity to handle 34 million tonnes of LNG per annum.

The Sarawak government has a 39.717% equity interest and was the largest shareholder in BPHB as at Dec 31, 2022.

The shareholdings are held by State Financial Secretary Sarawak (26.674%) and indirectly (13.043%) in Equisar Assets Sdn Bhd, a wholly-owned unit of Equisar Sdn Bhd, which in turn is a wholly-owned subsidiary of State Financial Secretary Sarawak.

Petroliam Nasional Bhd has a 28.52% stake in BPHB and other substantial shareholders include Kumpulan Wang Persaraan (Di-perbadankan) and the Employees Provident Fund.

Renggi said the taking over of Bintulu Port represents part of the Sarawak government’s overall strategic plan to develop and consolidate all state ports.

He said the Sarawak government’s move to take over Bintulu Port aligns with Premier Tan Sri Abang Johari Tun Openg’s vision to enable Sarawak to plan its ports’ development, ensuring each port serves a distinct role in promoting business and trade.

Abang Johari had said that the Sarawak government wanted the federal government to discontinue Bintulu Port as a federal facility to enable the state government to have a masterplan for the development of all ports in Sarawak.

This, according to him, would ensure that each port would play its own special role in the promotion of trade and business while also enhancing shipping connectivity with other major global transportation and logistics hubs.

With the passing of the Bintulu Port Authority Act 1981 by Parliament, the Bintulu Port Authority was set up and tasked with building, administering and regulating Bintulu Port.

Meanwhile, the Samalaju Industrial Port Sdn Bhd (SIPSB) has achieved a milestone in welcoming the first international container vessel – MV Lila Bhum – two weeks ago.

The vessel is owned by Thailand-based Regional Container Lines, which operates 49 container ships that serve 69 destinations across Asia, India, the Indian subcontinent and the Middle East.

SIPSB chief operating officer Eizam Ismail said the maiden call by MV Lila Bahun at the Samalaju Port is a testament to the company’s commitment to becoming a pivotal hub for containers, thus fostering economic growth and providing trade opportunities.

He said this maiden call was a culmination of efforts by the group which commenced in 2021 with the introduction of container services at the port.