Kota Kinabalu: Business chambers and industry players want new container charges due to be imposed at the Sepanggar Container Terminal March 1 (Sunday) to be suspended until the temporary action plan to resolve port congestion is fully carried out.
Representatives from the Sabah and Labuan Chinese Chamber of Commerce, the Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI), the Kota Kinabalu Container Hauliers Association, the Sabah Freight Forwarders and Logistics Association (SABFFLA), the Sabah Timber Industries Association (STIA), the Federation of Malaysian Manufacturers, the Frozen Meat Importers Association, the Sabah SME Association, the Sabah Industrial Federation and the Malaysian Entrepreneurs’ Development Association (Sabah chapter) held a joint press conference, Sunday, to express dissatisfaction over the sharp increase in charges.
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They urged the state government to intervene and resolve the issue, saying the daily storage charge for a 20-foot container has been increased from RM12 to RM30, while the charge for a 40-foot container has risen from RM24 to RM60 — an increase of more than 100 per cent.
Sabah and Labuan Chinese Chamber of Commerce president Datuk Michael Lui Yen Sang, who is also KKCCCI President, said the higher charges and continued port delays would ultimately be passed on to consumers.
He warned that this could lead to a reduction in imports, potential shortages of goods in the market and higher prices.
SABFFLA president Datuk Johnson Dai said port charges have more than doubled since March 1, 2026.
Also, importers who fail to collect their containers within three days face additional penalties, further increasing the financial burden on businesses.
STIA also described the charges as punitive and ineffective in addressing congestion issues. The new fees would only add to the burden on industry players.
It said imposing extra charges on shipping companies and freight forwarders would not solve the root causes of congestion, such as low port efficiency, weak management and insufficient container yard space.
It said the real problem lies in operational inefficiencies and inadequate storage space at the terminal, not deliberate delays by importers in collecting their containers.
It called on the authorities to strengthen engagement with industry players and provide clearer updates on the progress of port upgrading, expansion and improvement works in order to restore business confidence.
It also urged the port authorities to improve management efficiency and increase container storage capacity.
Kota Kinabalu Container Hauliers Association chairman Joseph Chong said transport operators are facing real and practical challenges. He cited shipping agents and some government departments being closed on weekends.
This makes it difficult to complete all paperwork and collect containers within three days. Despite these challenges, companies are still charged extra if they exceed the deadline.
They support efforts to upgrade and expand the terminal but believe the new charges should only be implemented after improvements are completed.
He also said if the fees must be increased, they should be in stages.
Earlier, State Minister of Industrial, Development, Entrepreneurship and Transport Datuk Ewon Benedick expressed concern over logistics congestion issues in Sabah and announced that the State Cabinet had approved a temporary action plan on Feb 4 alongside ongoing port expansion works.
Industry players thanked Ewon for meeting them personally to understand their concerns. However, they noted that so far there have been no visible improvement measures by Sabah Ports and its holding company, Suria Capital Holdings Berhad.
All agree congestion must be solved. However the solution should focus on fixing the root causes — such as improving efficiency and increasing space — instead of simply raising costs for businesses, which will eventually affect consumers.
