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Sabah Ports Sdn Bhd: Backlogs will be cleared by end of July
Published on: Friday, July 12, 2024
Published on: Fri, Jul 12, 2024
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Sabah Ports Sdn Bhd: Backlogs will be cleared by end of July
Aerial photo shows the Sapangar Bay Container Port.
Kota Kinabalu: Sabah Ports Sdn Bhd (SPSB) aims to restore normal operations by end of July and calls for industry collaboration to find effective solutions for Sabah’s future.

The port operator said this in a statement, Thursday, following a recent decision by several shipping lines to implement a surcharge on containers bound for Kota Kinabalu at Sapanggar Bay Container Port (SBCP). 

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SPSB appealed to the shipping lines to reconsider the surcharge, citing concerns over increased costs for Sabah consumers and potential negative impacts on local trade.

While acknowledging the current challenges at SBCP, SPSB has outlined immediate steps to address the congestion issues. 

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The company assures that container backlogs will be cleared by end of the month, with strategies already in place to achieve this goal.

The high utilisation rate at SBCP’s yard is primarily attributed to extended storage of containers, exacerbated by insufficient storage depots in Sabah.

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SPSB is implementing stricter protocols to streamline the receiving of export containers and is calling for cooperation from traders, agents and forwarders to promptly remove import containers.

To tackle the backlog, SPSB will increase its operational manpower by reassigning container terminal drivers to SBCP. 

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The company estimates that with these measures, the current backlog of import boxes will be cleared within a week.

SPSB has also addressed the suggestion of returning ro-ro operations to Kota Kinabalu Port permanently, stating that this is not possible due to ongoing commercial development of the area. 

However, the company is considering temporarily handling ro-ro operations at KK Port until more yard space becomes available at SBCP.

The port operator has invested close to RM1 billion in port development since taking over operations in 2004, with a focus on upgrading SBCP’s capabilities. 

The SPSB remains committed to its expansion plans, partnership with DP World and acquisition of additional port land at Sapanggar.

As SPSB implements these measures to address operational challenges, it urges shipping lines not to proceed with the surcharge implementation. 
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