Sandakan to be a key port
Published on: Saturday, February 23, 2019
By: Mardinah Jikur
SANDAKAN: Sandakan has the potential to be the economic and dominant trade centre for the east coast of Sabah and BIMP-EAGA with the completion of the new wharf at the port here.
“The strategic location of the port also has the potential to make it the centre of transhipment and logistics in the east coast,” said Suria Capital Holdings Berhad Chairman cum Sabah Ports Snd Bhd Chairman Tan Sri Ibrahim Menudin at the launch of the Sandakan port’s new jetty.ADVERTISEMENT
The ceremony on Thursday was officiated by Chief Minister Datuk Seri Mohd Shafie Apdal.
Ibrahim said this makes the new harbour measuring 495 metres long and 65 metres wide, able to accommodate six merchant ships at any one time.
He said the construction of the wharf cost RM129.4 million and took 24 months to complete.
“The new pier is an important landmark for the construction of the port infrastructure especially in Sandakan and generally in Sabah to increase the efficiency of port services and facilitate trade and investment in Sabah,” he said.ADVERTISEMENT
He said Sandakan Port is an important gateway for the State’s economic development because of its role in accelerating economic activity in the east coast.
“During the 30-year concession period, Sabah Ports Sdn Bhd is required to spend at least RM1.4 billion for infrastructure development and port expansion.
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“Sabah Ports Sdn Bhd has already spent RM1.03 billion within the 15-year concession period,” he said.
He said in 2003, when the Privatisation Agreement was made, a total of RM210 million was paid to the State Government for 30-year concession rights with the option to extend the concession period for another 30 years.
Chief Minister Datuk Seri Shafee Apdal (centre) signing the plaque to commemorate the officiating of the jetty.
Since the privatisation and up to now, Suria Capital and Sabah Ports Sdn Bhd have paid nearly RM300 million to the State Government and Sabah Ports Authority in the form of dividends and fees.
Suria Capital and Sabah Ports Sdn Bhd are also poised to increase the rates to the State Government if there is an increase in cargo output.
He said this illustrates the company’s ability to manage ports well with the expertise and experience of over 1,100 people, a network of co-operators with shipping agents and major port managers globally.
Given the generous governance structure and financial management, Suria Capital will continue to manage the ports as best it can as a government-linked company of high performance.
On another note, Ibrahim also suggested that port tariffs in Sabah be reviewed.
“With the increase in the cost of doing business both locally and internationally, it is time to review Sabah’s 30-year port tariff. Other ports in Malaysia have long been studying and restructuring their port rates by taking into account the economic and financial factors affecting the port’s business,” he said.
He said Sabah Ports has already started the Port Tariff Assessment Project since 2011 and are quite optimistic that the State Government will support the effort to realise the new tariff.
He also said that with a new private jetty which grants flexibility to a certain group of people, it was not in line with the Privatisation Agreement.
Sabah Ports, he said, has better infrastructure and expertise in terms of managing the safety of port users and customers.
“For economic activities, land, sea and air links become important besides basic amenities such as energy and water,” he said.
He said in terms of sea connectivity, Sabah is very fortunate as it has eight ports.
“With the expansion of the Sandakan port and expansion efforts at Sepanggar port to increase the capability to reach the level of 1 million TEUS (twenty-foot equivalent units), we are ready for the industrial sector in Sabah.
“So far, from 350,000 containers entering Sabah, 60 per cent of them will be empty. In terms of container use, this means imports are exceeds export,” he said.
The Sandakan Port has been in operation since 40 years ago in 1977 and was officially opened by the then Head of State Tun Mohd Adnan Robert in 1979.
The district is well known for its active economy as a result of the wealth from logging industry which once gave Sandakan the nickname “Little Hong Kong”.
As the timber industry diminished, the palm oil industry revived the district as a major growth centre in the east coast and the State’s economy.Stay up-to-date by following Daily Express’s Telegram channel.
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