Dubai help on shipping hub
Published on: Thursday, April 25, 2024
(From left) Ng, Yusof, Faisyal, Shahelmey, Sultan Ahmed, Glen Hilton, Mohamed Jasmin and Mohd Hanafiah.
Kota Kinabalu: Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor is confident the strategic collaboration between Sabah Ports Sdn Bhd (SPSB) and Dubai-based DP World (DPW), a global port terminal operator, will assist Sabah’s aspiration to make Sapangar Bay Container Port (SBCP) a key transhipment hub in the region.
“In the long run the vision is to improve landside and seaside connectivity throughout the State, thereby reducing transit costs and time besides improving performance standards across the State’s entire supply chain,” he said.
Hajiji presenting a memento to Sultan Ahmed.
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“I am happy that DP World has chosen Sabah to expand its business and I invite DP World to look into other potential economic areas in Sabah,” said Hajiji during the meeting with DPW Chairman and Group Chief Executive Officer Sultan Ahmed Sulayem at the sidelines of the State Assembly sitting, Wednesday.
DP World has a network of more than 60 ports and terminals with the capacity to handle over 90 million Twenty Foot Equivalent Units (TEUs) a year and across the world.
On his part, Sulayem said DPW had been in negotiation to enter into a business collaboration with SPSB. Ranked the 11th most powerful Arab business leader in 2023, he credited Hajiji for taking the project to fruition.
“Sabah is a beautiful state and located strategically to become a logistic hub in this region,” he said, adding that DP World had chosen Sabah because of its stability, which is conducive for investments.
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Sulayem said he would do his best to use his Fortune 500 connections to bring businesses to Sabah. SPSB, a wholly-owned subsidiary of Suria Capital Holdings Berhad of which the State Government is a majority shareholder.
It operates eight terminals — SBCP, Sapangar Bay Oil Terminal, Kota Kinabalu Port, Kudat Port, Sandakan Port, Tawau Port, Lahad Datu Port and Kunak Port. The State Govt Government had given approval for the collaboration with DPW for the operation and management of SBCP on Jan 4, 2023.
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The strategic collaboration allows DPW, one of the top five box port operators, to manage and operate Sapangar Bay Container Port (SBCP).
Its primary focus is on enhancing connectivity for cargoes en-route to the larger BIMP-EAGA, Far East countries, Europe and the Middle East.
The agreement was signed by Sultan Ahmed and SPSB Managing Director Datuk Ng Kiat Min. SBCP, being Sabah’s main container port, handles over 70 per cent of the state’s cargo.
Sultan Ahmed, who has a net worth of more than RM38 billion, said unforeseen conditions had pushed back the signing date and now they have to work fast.
“We have many plans not only to upgrade infrastructure but sharing technology which will bring synergy and opportunity expansion,” he said.
SPSB received approval from the State Government to enter into a strategic collaboration with DP World on Jan. 16 2023, for the management and operation of SBCP for 30 years.
Sultan Ahmed said with its strategic location and abundance of natural resources, Sabah is well-positioned to reap the immense growth opportunities in the BIMP-EAGA region and beyond.
“SBCP plays a critical role in realising these ambitions. We are honoured to bring our experience in operating ports to support the transformation journey.
“We will apply industry-leading practices to elevate SBCP into a hub port for BIMP-EAGA markets, supported by an ever-growing network of inland container depots, industrial parks, logistics parks, and free zones across Sabah,” he said.
Ng said SBCP is an important driver of development in Sabah. “As we consider the future of SBCP, we are pleased to have onboard a partner like DP who will lend their global expertise in managing ports and building supply chain networks to help optimize SBCP’s operations.
“This will in turn catalyse increased trade through Sabah and benefit communities and businesses around the state.
“The synergy with DP World can potentially address the challenges of high logistics costs faced in Sabah, through the establishment of a strong shipping network and expansion of cargo base,” he said.
He said the venture is expected to not only impact Sabah’s shipping and logistics industry but lead to economic growth in view of market confidence, thus attracting economic investments and infrastructural upgrades in transport, logistics, and along the supply chain.”
She attributed the success to Hajiji, the Ministry of Works Sabah, State Attorney-General’s Chambers, State Economic Planning Unit, Sabah Ports Authority and all other relevant government agencies.
At present, SBCP is undergoing an expansion phase aimed at upgrading its facilities, expanding terminal capacity from 500,000 TEUs to 1.25 million TEUs, with the aim of positioning SBCP as the regional premier trade hub.
The expansion project is funded by the Federal Government and is administered through the Sabah Economic Development and Investment Authority.
With the strategic partnership and DPW’s global expertise complementing this initiative, SBCP is poised to emerge as a high-performing port, strengthened by expanded capacity, strategic connectivity, and advanced port technologies.
DPW has more than 106,500 employees spanning 73 countries on six continents and has ports and terminals in 18 locations.
Also in attendance were Sabah Ports Sdn Bhd Chairman Datuk Faisyal Yusof Hamdain Diego, Deputy Chief Minister Datuk Ir. Shahelmey Yahya and Qhazanah Sabah Berhad Chairman Datuk Dr Yusof Yacob.
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