KUALA LUMPUR (April 24): Suria Capital Holdings Bhd’s wholly owned Sabah Ports Sdn Bhd has roped in DP World, an Emirati multinational logistics company based in Dubai, to manage Sapangar Bay Container Port (SBCP), in a bid to cement the port’s position as a regional trade hub for the East Asean growth area spanning Brunei, Indonesia, Malaysia and the Philippines (BIMP-EAGA).
Under the collaboration, DP World will facilitate growth of the port’s container handling capacity to 1.25 million TEUs by 2025. Investments will also be made in workflow optimisation, digital enhancements for greater operational efficiency, and to increase the port’s connectivity.
An agreement between the parties was signed by Sabah Ports managing director Datuk Ng Kiat Min and DP World group chairman and chief executive officer Sultan Ahmed Sulayem, according to a statement by DP World on Wednesday.
“With its strategic location and abundance of natural resources, Sabah is well-positioned to reap the immense growth opportunities in the BIMP-EAGA region and beyond. Sapangar Bay Container Port plays a critical role in realising these ambitions. We are honoured to bring our experience in operating ports, to support SBCP’s transformation journey.
“In partnership with Sabah Ports, we will apply industry-leading practices to elevate SBCP into a hub port for the BIMP-EAGA markets, supported by an ever-growing network of inland container depots, industrial parks, logistics parks and free zones across Sabah,” Sultan Ahmed said.
Ng, meanwhile, said Sabah Ports is pleased to onboard a partner like DP World, who will lend their global expertise in managing ports and building supply chain networks to help optimise SBCP’s operations, which in turn will catalyse increased trade through Sabah and benefit communities and businesses around the state.
“The synergy with DP World can potentially address the challenges of high logistics cost in Sabah, through the establishment of a strong shipping network and the expansion of cargo base. The venture is expected to not only impact Sabah’s shipping and logistics industry but will also lead to economic growth in view of market confidence, thus attracting economic investments and infrastructural upgrades in transport, logistics and along the supply chain,” Ng said.
The partnership has been forged five years after the two parties signed an agreement to jointly develop solutions to enhance SBCP’s competitiveness and drive cargo creation in Sabah’s hinterlands in 2019.
In the longer run, the collaboration is targeted at improving the landside and seaside connectivity throughout Sabah, reducing transit costs and time, and raising performance standards across the state’s entire supply chain.
The five-day sail-time radius from Sabah is home to more than 2.2 billion people and accounting for over 40% of global manufacturing output, creating a huge potential for the state to emerge as a destination for business and industrial development. It is also rich in natural resources, such as timber and oil, while its fisheries sector was the second largest contributor to Sabah’s gross domestic product in 2022.
“With projected enhancements to SBCP’s cold chain storage and transport capabilities, such agricultural products can be more seamlessly processed and exported to international markets, thereby opening new avenues for growth,” the statement read.