Kota Kinabalu: Former Sabah Air Aviation chairman Datuk Kenny Chua proposed the creation of an inland port in Sabah to ease congestion at Sepanggar Port, describing it as a long-term solution to logistical bottlenecks.
Chua said Sabah currently has no inland port facility, unlike several other states in Malaysia that use such hubs to improve cargo movement efficiency and reduce pressure on busy seaports.
Advertisement
X500px(H).jpg)
“Inland ports are an important part of modern logistics infrastructure. Sabah does not have one yet, and this is something the government and industry players should seriously consider,” he said in a statement, commenting on ongoing congestion at Sepanggar Port.
He cited examples of existing inland ports in Malaysia, including Padang Besar, Ipoh, Nilai, Segamat, and Tebedu in Sarawak. These facilities act as inland cargo hubs connected by road or rail to major seaports such as Port Klang, Penang Port and Port of Tanjung Pelepas, handling container storage, customs clearance and cargo distribution inland.
Chua, a former Sabah Assistant Finance Minister and Inanam Assemblyman, said delays, container rollovers and rising surcharges underscored the urgent need for structural improvements in Sabah’s logistics and transport network.
He proposed locating an inland port roughly 15km from Sepanggar Port and built under a Public-Private Partnership (PPP) model. The facility he said could serve as a satellite cargo hub, allowing containers to be transferred, stored and cleared more efficiently, easing congestion at the main port.
“This would help speed up cargo handling, reduce bottlenecks and lower operational pressure at the main port,” he said, adding that such a system would allow Sepanggar to focus on vessel loading and unloading while shifting storage and customs activities inland.
Chua warned that prolonged congestion had already increased logistics costs for Sabah businesses, potentially affecting the state’s competitiveness.
He said an inland port could also support future industrial growth by enhancing connectivity between ports, industrial parks and distribution centres across Sabah.
The proposal comes amid rising concern from the Federation of Malaysian Manufacturers (FMM), which has criticised persistent port congestion for triggering additional shipping surcharges and delays. Some manufacturers reported losing overseas customers due to unreliable shipping schedules.
“It’s like adding insult to injury to Sabah companies. Already they have to deal with severe congestion, now additional surcharges,” Chua said, noting that extra costs are likely to be passed on to consumers, potentially affecting the state’s industrial economy.
Chua called on business groups to collaborate and present solutions to the state government.
