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Sabah Timber Industry Association president Tan Peng Juan (pic) said ongoing congestion at the Sepanggar Bay Container Port has become a major economic bottleneck affecting supply chains and increasing operational costs across Sabah.

He said container truck queues stretching up to four kilometres, vessel waiting times exceeding 100 hours and reduced free storage periods at ports have disrupted delivery cycles and forced businesses to absorb additional charges.

Tan said feeder operators had imposed new congestion surcharges for both carrier-owned and shipper-owned containers, while local logistics companies had also raised haulage delivery fees depending on destination.

He said the congestion was linked to delays in the multi-million-ringgit Sapangar Bay Container Port expansion and dredging project undertaken by the WCT-CCCC Joint Venture under the supervision of the Sabah Economic Development and Investment Authority (Sedia), with the revised completion target now pushed to late 2026.

Tan said industry stakeholders were urging Suria Capital Holdings Berhad, Sedia and the project contractors to accelerate the remaining dredging and civil engineering works as concerns grow over whether the terminal can achieve its targeted 1.25 million TEU handling capacity by the revised completion timeline.