Daily Express Subscriber
Sign in to your account.

NOT too long ago, there were only few ships coming to Sepanggar Port. Due to uninspiring economic growth, Sepanggar Port was rather quiet. Port congestion was alien. The antiquated equipment and out of date system could still cope. 

The port activities heightened considerably in 2022 when Hajiji’s investor friendly policies began to yield results. Soon Sepanggar Port was overwhelmed starting in 2024. The whole system seemed to have broken down, several miles of lorry queue on a daily basis was a common sight. Pure nightmare just to locate a container and get the same container out was a grave challenge.

Ships were also queuing ups. Expensive demurrage was charged. 

One might say that the problems in Sepanggar Port were the product of success in Sabah’s economic transformation.

Quite naturally, the endless daily queues by lorries to load containers began to heighten operation cost which was passed on to consumers in price increases. It mushroomed into a big economic problem. Ultimate victims are Sabahans. 

Here is a summary of the problems at Sepanggar Port:

SABAH GOVERNMENT’S EXCELLENT DECISION TO APPOINT DP WORLD TO MANAGE Sepanggar Port IN SEPTEMBER 2024.

Such was the above situation when the Sabah Government agreed for DP WORLD, which is a global leader as port owner/manager, to take charge of the management of Sepanggar Port.

DP WORLD has excellent credentials.

[1] Capacity: DP WORLD recently hit a milestone of 100 million TEUs in global port capacity.

[2] Network: They manage a portfolio of over 80 terminals spanning six continents.

[3] Ranking: DP WORLD consistently ranks among the top five largest global container terminal operators.

Pretty impressive improvements in 18 months.

EWON BENEDICT’S SPEEDY INTERVENTION.

Notwithstanding the impressive performance by DP WORLD, the container logjam persisted. The volume of containers grew rapidly when 2 large manufacturing companies in KKIP began their exports. 

Ewon Benedict was quick to act! He inspected Sepanggar Port and got cabinet approval to implement the following targets.

FOLLOWING ARE CONGESTION CHARGES INCLUDING LATEST BY SHIPPING COMPANIES.

All the above additional charges have been implemented after Ewon Benedict’s visit. Yet the shipping companies have imposed hefty congestion charges on 30 April 2026. Why?

QUESTIONS THAT REQUIRE ANSWERS BY ALL RELEVANT PARTIES.

Questions below are not political. The Sepanggar Port problems are not political. The problems are related to quality/effectiveness of senior management, financial, investment of equipment, system of operation, planning and human resource management.

The Board of Directors, Senior Management of pertinent government agencies, DP WORLD as the management company, contractor of port extension, the shipping companies and haulage companies must take responsibility. They need to pin-point where exactly are the problems and provide solutions acceptable to all parties.

These parties must produce the first line of operational solutions. 

Here are the questions for:

[1] Sabah Port Authorities. [2] Customs [3] Suria. [4] DP WORLD. [5] Shipping companies. [5] Haulage companies. [6] Contractor for port expansion.

The questions are:

[a] Is there synchronization among all the government agencies, especially in working hours and operation of system.

[b] How old are the port equipment? Purchased 2nd hand? Spare parts are still available? Have they been serviced/maintained regularly? 

[c] Is computerization up to date? In good working order? How long does it take to locate a container and for it to leave port? It takes 3 days to out-gate a container after unloading from ship in Singapore. Heft charges after 3rd day.

[d] What investments have been spent on port equipment, computerization system and all other port equipment. Are all cranes in working order? What investment in equipment is needed to sort out the present mess? 

[e] Is the port operation, like KLIA, on 24 hours? If not, why not?

[f] How often does Sabah Ports, Suria and DP WORLD meet the haulage companies? What is the quality of relationship? Are the haulage companies being treated as partners? What suggestions from the haulage companies? What is the scale of charges for late clearance of containers?

[g] Why is there still congestion after Ewon Benedict’s intervention?

[h] Why is contractor allowed so much delays? What is the definitive completion date of the port expansion? Will this expansion be sufficient to clear the congestion? If yes, for long before congestion builds up again?

[i] Can Suria/DP WORLD produce some “out of the box” temporary solutions before the completion of the expansion?

[j] Can the port in KK be used to relieve the congestions?

[k] The shipping companies have increased congestion charges on 30 April which is after Ewon Benedict’s intervention. Why the increase? Can they do it arbitrarily? Do they require authorisation/approval from Sabah Ports? What is the basis for them to increase RM500 for 20ft and RM1000 for 40 ft containers? How do they arrive at these figures?

[l] What are the comments of Sabah Ports, Suria and DP WORLD on the congestion charges by the shipping companies? 

[m] Who should take responsibility for the unsatisfactory operation in Sepanggar Port? 

[n] Sepangar Port is supposed to work 24 hours. How effective is this arrangement?

[o] Who is best to take the lead or be responsible to produce solutions?

DEGENARATING THE Sepanggar Port PROBLEMS INTO A POLITICAL MUD-SLING WILL WORSEN THEM.

We should know where politics should end and good governance/best management practices should begin. The delineation between politics and management responsibility must be established.

It will aggravate them as the focus of seeking solutions by management may be degenerated into economically damaging political brinksmanship, masking real operational issues into political rhetoric.

It needs to be reinstated. The problems are not political. They are related to operational, financial, severe delays in construction of port extension, aging equipment, quality of senior management, system/computerization, working relationships with haulage companies and staff quality/efficiency. All these problems need professional, financial and technical solutions. All these are a textbook case of weak, slow-to-act management.

Someone must take charge, be given the necessary finance and authorities to solve the congestion problems effectively and quickly.

INEFFECTIVE SENIOR MANAGEMENT PERSONNEL MUST BE HELD ACCOUNTABLE OR BE REMOVED. Already the USA/Iran war is hiking prices of everything.

With no holistic solutions each passing day, the economic impact on Sabah’s economy is tremendous. The extra cost, needlessly unnecessary, is hurting the pockets of every Sabahan, especially Sabahans in the B40 group.

STOP PRESS: THANKS TO EWON BENEDICK. 

He has got the shipping companies to withdraw their latest congestion charges. 

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: Forum@dailyexpress.com.my