KOTA KINABALU: A land expansion at the Sapangar Bay Container Port (SBCP) is crucial to enable the port to operate at an optimum level in future.
This was among the pressing issues raised by logistics associations and business chambers during an industry dialogue to discuss the congestion at the SBCP recently.
“The stakeholders stressed that land expansion is crucial for the port to operate efficiently and handle future growth,” said the Sabah Ports Sdn Bhd (SPSB), in a statement on Wednesday (July 17).
“This highlighted the need for the SBCP expansion to remain on track and additional yard space to be secured,” it added.
As such, SPSB affirmed its commitment to improve productivity, particularly container handling rate and will reestablish its window berthing system to manage vessel arrivals better.
“SPSB will further implement effective planning to provide ample time for forwarders to truck in containers to the port,” said the company.
Besides this, key issues discussed included strategies to minimise berth waiting time for efficient vessel handling and berth allocation, upgrading of port equipment at SBCP and Tawau Port and manpower issues.
The dialogue, SPSB said, further highlighted the role of cargo owners in expediting container clearance from the yard and the need for coordination with the Customs Department to accelerate documentation processes.
“The meeting acknowledged that due to the port's recent unprecedented growth, including a record high in cargo handled in May 2024 and double-digit growth year-to-date, the port’s yard is facing significant space limitations, resulting in high yard utilisation,” it said.
SPSB assured that it would study all feedback and work closely with the government and state agencies to implement its plans effectively.
The company said it recognised the role of the stakeholders as valuable advisors and appreciated their cooperation in jointly addressing these challenges.
“SPSB further expresses its appreciation to the state Works Ministry, the Industrial Development and Entrepreneurship Ministry and the Sabah Logistics Council for their dedicated efforts, which reflects the government’s commitment to resolving the challenges faced by SBCP.”
Among the stakeholders who took part in the dialogue were the Sabah Works Ministry, Customs Department, Sabah Shipping Agents Association and the Sabah Forwarding and Logistics Association.
Also in attendance were representatives from the Kota Kinabalu Container Haulier Association, the Malaysian International Chambers of Commerce and Industry, the Federation of Sabah Industries, the Sabah West Coast Lorry Transportation Association and the Kibing Group.
Previously, two areas in Likas Bay here have been identified as temporary sites to increase storage space amid severe congestion at SBCP.
Its managing director Datuk Ng Kiat Min said SBCP was working with the Sabah government to overcome the backlog caused by the congestion, amid threats by shipping lines to impose surcharges.
