KUALA LUMPUR (June 23): Bintulu Port Holdings Bhd (KL:BIPORT) said its wholly owned subsidiary Bintulu Port Sdn Bhd (BPSB) will continue operating Bintulu Port following its transition from a federal port to a state port under the Sarawak government.

In a filing with Bursa Malaysia on Tuesday, the port operator said the federal government, the Sarawak government and BPSB had entered into a tripartite agreement during a cheque handover ceremony held on June 21 to formalise the change in status of Bintulu Port.

The agreement was witnessed by Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg.

According to Bintulu Port Holdings, the tripartite agreement is intended to release and discharge the federal government from any claims and obligations by the Sarawak government and BPSB arising from or in connection with the privatisation agreement signed on Dec 31, 1992 between the federal government, Bintulu Port Authority and BPSB.

The agreement effectively closes the chapter on Bintulu Port's more than three decades as a federal port.

The transfer of regulatory authority over the port to the Sarawak government is among the key milestones achieved under the implementation of the Malaysia Agreement 1963 (MA63).

The Sarawak state government is the largest shareholder of Bintulu Port Holdings with a collective 41.71% stake, through State Financial Secretary Sarawak (26.67%) and Equisar Assets Sdn Bhd (15.04%).

Equisar Assets Sdn Bhd is a private investment holding company wholly owned by the Sarawak state government.

The federal government through Petroliam Nasional Bhd (PETRONAS), owns 28.52% equity interest in the port operator.

Meanwhile, Bintulu Port Holdings said the Sarawak government has decided to retain BPSB as the approved port operator when Bintulu Port becomes a state port.

BPSB is expected to enter into a separate agreement with the relevant state authority to operate, manage and develop the port.

"BPSB will continue to operate Bintulu Port as the approved port operator when Bintulu Port becomes a state port," the company said.

Bintulu Port Holdings said the transition and the signing of the tripartite agreement would not affect the port's day-to-day operations, service continuity, or BPSB's existing rights and obligations under its operating arrangements.

The company added that the exercise is not expected to have any material impact on its earnings, net assets, share capital or substantial shareholders' shareholdings for the financial year ending Dec 31, 2026.

Bintulu Port Holdings said it will continue working closely with the relevant authorities to support a smooth transition and ensure port operations remain stable, efficient and uninterrupted.

Bintulu Port Holdings was not traded as of midday break on Tuesday. It was last traded on Monday at RM5.60, valuing the company at RM2.58 billion. Over the past one year, the stock has gained 2.6%.