MUSA, when he was CM, started POIC LD in January 2005. POIC LD will be one of Musa’s most enduring legacies for generations of Sabahans. POIC LD was one of the pillars of Musa’s “Halatuju” for Sabah. He named it POIC LD or Palm Oil Industrial Cluster Lahad Datu. Musa’s idea was economically, logically farsighted and wise:
[1] Oil Palm has become the major crop for Sabah with little downstream and hardly benefit Sabahans. POIC LD would spearhead this downstream objective.
[2] Lahad Datu is in the middle between Tawau and Sandakan where all the best and most productive oil palm plantations are. Richest and best soil in Sabah is here.
[3] Oil palm plantations in Kalimantan were developing rapidly. Given the right facilities, POIC LD can play a major role for the Kalimantan oil palm industry. The deepwater port would be ideal.
[4] The ultimate important reason for Musa was that POIC LD has the most sheltered and deepest maritime draught in this region. POIC LD has a 20m draught that can be deepened further to 25m by an extension of just 1 km out.
History, when looking at POIC LD will prove Musa to be right. Definition: A ship’s draught is the vertical distance between the waterline and the lowest point of the hull [usually the keel]
Why Musa decided to develop POIC LD? Because of POIC LD’s 20m to 25m draught is one of the rarest in Asean. He has chosen well!
The requirement for a port to be deeper than 20m is a critical maritime threshold. It allows a port to handle “Malaccamax” vessels—ships that are too deep to pass through the Strait of Malacca fully laden [which has a depth limit of 21m.]
How rare is POIC LD as a port in Asean? As of 2026, the list of Asean ports that meet or exceed this depth is extremely short, as most major hubs [like Port Klang, Laem Chabang, or Tanjung Priok] max out between 16m and 19m.
Here are the very rare Asean ports that is 20m or deeper:
[1] Tuas Port [Singapore]: Depth:23.0m. Status: Fully operational Phase 1.
Important point: It is currently the deepest and most advanced automated container terminal in the world. Its 23m draught was specifically designed to accommodate future generations of “mega-vessels” that exceed current global size standards.
[2] POIC Lahad Datu [Sabah, Malaysia]
Depth: 20.0m currently at its Liquid Bulk Terminal]. Can reach 25m by extension of just 1 KM out.
Status: already operational. Insufficient traffic.
##Very Significant: While it sits right on the 22m[seabed] mark, it is unique for being a natural deep-water harbour on the Lombok-Makassar Strait. Because it doesn’t require constant heavy dredging like Malacca Strait ports, it is one of the few locations in the region capable of handling 100,000 DWT to 150,000 DWT vessels with ease. Dredging is expensive and time consuming.
[3] Kuala Tanjung Port [North Sumatra, Indonesia] Depth:17m to 21m [depending on the development phase].
Status: Phases 1 and 2 active; final deep-sea terminal expansions ongoing.
Significance: Designed to be Indonesia’s “The Great Hub,” its master plan targets a depth that rivals Singapore to capture transshipment traffic. While most current berths are at 17m–18m, specific terminals for crude and bulk are engineered for depths up to 21m.
[4] Cam Ranh Bay [Vietnam]. Depth: 20m to 30m [Natural channel/bay]
Status: Mixed use [Military and Commercial].
Significance: It is widely cited as the best natural deep-water shelter in Southeast Asia. While the commercial Ba Ngoi Port within the bay typically operates at shallower depths, the bay itself and its dedicated naval/industrial piers can accommodate vessels drawing over 20m.
**Draughts of 20m+ can accommodate Ultra Large Crude Carriers [ULCCs] and Valemax iron ore carriers (400,000 DWT).
For a location like POIC Lahad Datu, even at 20m, it holds a massive advantage over competitors like Cai Mep (Vietnam) or Tanjung Pelepas (Malaysia), which typically max out at 16m–18.5m.
3. Hajiji’s farsighted decisions for POIC LD that will transform POIC LD into a major maritime hub.
Sensing the increasing geopolitical/ geoeconomic importance of Sabah in general and POIC LD in particular, Hajiji has made these very important decisions which will prove to be economically beneficial for Sabah, especially in the east coast, in the long term.
[1] Hajiji redesignated POIC LD from a private port to a public port. This change of status has opened up POIC LD to international maritime traffic for the first time. The aim is to transform POIC LD into a maritime hub.
[2] Being pragmatic and seeing the rapid up-take rate of the developed land [already 95%] and great interest by some major investors of the remaining undeveloped land, Hajiji has approved another 3000 acres to POIC LD for expansion. Already, some investors are wanting 500 acres each.
[3] Hajiji instructed POIC LD to apply for FREE ZONE status from Federal MOF, which has been obtained. This is Sabah’s first and only Free Zone.
[4] Hajiji has initiated a policy on Oil Palm Biomass Industry Policy, which fundamentally designates POIC Lahad Datu as the state’s strategic “nerve centre” for this sector.
This policy has moved into full enforcement, effectively centralizing the collection and downstream processing of Sabah’s 45 million metric tonnes of oil palm waste from waste into a valuable resource.
[5] Already, a preliminary master plan has been drawn up for the 3000 acres.
POIC can be “The Rotterdam of the East”
Hajiji’s decisions would have the potential to transform POIC LD as “The Rotterdam of the East”. Following the keen expression of interest by the owner of Rotterdam Port, POIC LD has adopted the long-term vision for the port to replicate the Rotterdam model: an integrated industrial port city where the port doesn’t just move goods but also facilitates for the processing and value-adding of those goods on-site. For Sabah, this means shifting from a “raw material exporter” to a “geopolitical middleman” in the global supply chain.
On-going chaotic global uncertainties is golden opportunities for POIC LD.
“Every cloud has a silver lining”. This is very true. While Trump is creating havoc, waging war and bombing innocent schoolgirls in Tehran and sending the world economy into a tailspin, Sabah’s geopolitical position, particularly POIC LD, is being enhanced. The grave situation in the middle east has forced some Asian countries/petroleum companies to look for:
[1] Alternative sites/ports for petroleum storage and processing. Because of the VLCC [Very large crude carriers] being used, they need a deep port with 20m draught or more.
[2] They also need a country/place that is safe and secure to process their petroleum.
[3] POIC has an extremely attractive waterfront that can be transformed to cater for the oil and gas industry, ship building and maritime hub for trans-shipments.
[4] POIC LD is most conveniently located for the future processing and export of mineral products for Sabah.
POIC LD fits these to the last stitch. Sabah is very near to China and the South China Sea, especially the Spratly Islands which is 300 KM only. In addition, the exploration of oil and gas is increasing in momentum rapidly in the South China Sea and Sabah’s east coast.
6. “Time and tide wait for no man”. POIC LD must grab the opportunities in the present global scenarios. All related ministries and agencies must give maximum collaborations to POIC LD.
POIC LD, because of its very rare, sheltered port and more than 20m draught, can be a game changer for Sabah in general and the east coast in particular.
Like all economic opportunities, they will not wait for us. Strike while iron is hot! Right now, the iron of POIC LD is red hot!
7. POIC LD can be one of the foundations/cornerstones of Hajiji’s economic restructure and transformation.
Important to bear in mind that this is a long-term undertaking that can generate fundamental economic benefits for Sabahans.
Therefore, there must be consistent policy and official attention to the development of POIC.
Why? Because POIC LD can do the followings:
[1] POIC LD can give the whole of east coast and Sabah in general many tremendous and continuous economic boosts for many years.
[2] POIC LD can be a central part of Hajiji’s blue economy.
[3] POIC LD can create many new avenues of investments for both foreign and local investors.
[4] POIC LD can be the processing centre for Sabah’s mineral industry.
[5] POIC is becoming the Biomass centre. The policy is already in place. This industry can only grow!
[6] POIC can be the regional maritime hub for Sabah, Kalimantan and other nearby provinces and Southern Philippines.
Also, for shipping route from North Asia [China, Korea, Japan, Taiwan] down to Australia, NZ and vice versa. Last not least, alternative route for the Malacca strait.
With the development of POIC LD, Sabah will have 2 maritime hubs, Sepangar Bay in the west coast to cover the South China Sea and POIC LD in the East Coast for the Lombok-Makassar Strait.
It must be remembered that the greatest asset of POIC LD is the gift from nature, i.e. the sheltered port and the exceptional deep draught. Use them as comparative advantages for our benefits.
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
