Plans are underway to increase the capacity of the newly-completed Sepanggar Container Port Terminal (SPTC) in order to meet growing demand.

According to Infrastructure Development Minister Datuk Seri Joseph Pairin Kitingan, ever since the container port was open for business, it has been recording an upward trend in performance.

Speaking after attending a briefing cum work visit to SPTC, Thursday, he said Sabah Port Sdn Bhd (SPSB) has been mulling over the expansion plan.

This is to further improve the port’s capacity to enable it to handle more containers coming into Sabah.

“The port has been recording a commendable increase in terms of operational performance and an expansion plan is necessary and something to look forward to,” he said.

This despite the port with a capacity of 500,000 TEUs (twenty foot equivalent units) handling only about 200,000 TEUs last year as said by its Chief Operating Officer Mohd Sahid Nawab Khan.

Pairin said the privatisation of ports in Sabah has resulted in their management becoming more efficient as reflected by the steady increase of operational performance.

He said that positive performance displayed by the container port showed that it was heading in the right direction.

Explaining the expansion plan, he said it would be carried out based on projected future needs. “The plan would include increasing the size of the container yard and docking areas.”

Costing RM400 million over 22ha in Sepanggar opposite the Naval Base, the port commenced operations on June 9, 2007.

Plan for expansion of the newly completed Sepanggar Container Port Terminal (SPTC) is being foreseen.

Infrastructure Development Minister, Datuk Seri Joseph Pairin Kitingan yesterday said Sabah Ports Sdn Bhd (SPSB), the government-linked company managing the port, was already mulling on expansion plan to further improve the port’s capacity.

The port, sitting on a 22 hectare land started operation June 9, 2007, has a capacity of 500,000 TEUs but last year it handled only about 200,000 TEUs, as revealed by its Chief Operating Officer, Mohd Sahid Nawab Khan.

However, according to Pairin, since commencing operation it has recorded a commendable increase in terms of operational performance and thus an expansion plan was something to look forward to.

He said the move to privatize the ports in Sabah has resulted in a more efficient management where a steady increase in operational performance has been noticeable.

“Operation wise, the privatization is showing a desirable result as the performance of our port continues to improve. We are heading towards the right direction,” he told reporters here yesterday during a visit to SPTC yesterday.

He said the scale of the expansion would depend on future needs and it would involve increasing the size of the container yard and docking areas.

Pairin who was in his first work visit to the port since taking over the Ministry of Infrastructure Development in May, however regretted that high percentage of empty containers going out from the port has continued.

He said this was due to Sabah still not producing sufficient manufactured product for export.

In the mean time, SPSB Chairman Datuk Karim Bujang explained that Sabah currently exports mainly crude palm oil which does not require the usage of containers.

Sahid added that 70 per cent of the total containers handled that entered through the port last year returned empty and the figure has increased slightly this year.

Other ports around the globe, he noted, were showing similar trend due to global economic slowdown.

Most of the cargos it handles are from Peninsular Malaysia with a small percentage of transit cargos.

By :  Sabah Times

The growth of cargo in Malaysian ports for the first six month this year is a very encouraging sign for the port businesses. If the growth continues for the next six month then Malaysian ports would have a very good year and investors would be lining up to snap-up port shares whenever they are available on the market. It is good to see various port shares trading on the KLSE moving upwards and hopefully will be better by the year end.

Ports infrastructures also had remarkable growth – the opening of the Sepangar Bay Container Port, Kota Kinabalu on 1st June 2007, marked a very important step in the development of ports in East Malaysia and particularly in Sabah. After a long break ports in Sabah are beginning to throb again, congratulations to Sabah Ports Sendirian Berhad. When I took a brief visit to the Terminal on 27th June 2007, I saw the container yard was full of containers and I think SPSB may need to reclaim more land for bigger yards!

The deepening of the North Channel in Port Kelang to enable  larger container ships to  enter and exit is another exciting development and hope will be completed soon. In Penang we have the development of the Swettenham Pier, on the Penang Island, into a cruise and leisure terminal intending for the cruise industries which is a booming industry in the Strait of Malacca. Of course, there are also ongoing development activities in PTP, Bintulu and private ports in Peninsular Malaysia.

Port physical growth is encouraging for the future of our economic well being, but we shall not forget  another equally important area that  needs growth – the port human resouces. As major ports in Malaysia grow ahead and  port regulators are  also expanding in order to cope with new areas of responsibilities, personnel with experience and know-how are slowly leaving the ports and pensioning off from port regulators. New personnel are recruited to replace those that left.  The arrival of new personnel which is fresh from universities and colleges and without the in-depth knowledge and experience of those that left have begun to create a vacuum in the ports. Many port regulators are  faced with this dilemma and urgent training of these young and fresh intakes are required in order to get trained and knowledgeable personnel. APA Malaysia had identified many courses that will be held and suitable trainers are being identified and methodologies discussed. I certainly hope that more young officers could be trained jointly by APA Malaysia instead of individually by one port . This is where APA Malaysia could be very useful in conducting joint training for all.

New and interesting ideas are being pushed – such as the Trans-Peninsular Pipeline project from Pulau Bunting, Yan, Kedah to Bachok, Kelantan to transfer oil from Strait of Malacca to South Chine Sea without passing the Straits of Malacca and Singapore – the world’s most congested international waterways. Whether this will materialised and be a reality, time will tell. If it become a reality, then Malaysia will have two additional ports to manage. It will be very challenging for young port officers who will be entrusted to run and manage new ports of the future. What we have to do now is train as many as possible to enable them to take the challenge and manage future ports in Malaysia and the world!

Regards,

Abdul Rahim bin Akob

President,

APA Malaysia.

Panstar V. PS001S’s maiden voyage to Kota Kinabalu Port on 28^th March 2006 was well receive by Sabah Ports Sdn. Bhd. (SPSB). This was the first direct call by a container vessel from the Far East to Sabah which marked the beginning of another milestone in the shipping fraternity that augurs well for Sabah Ports Sdn Bhd and Sabah as a whole.

The vessel which sails direct from Hong Kong will be servicing weekly calls to Kota Kinabalu thus facilitating the company, DMM Shipping Agency to foster Kota Kinabalu as the hub for containers bound for other regions of Sabah, This fits very well into SPSB’s plans of making Kota Kinabalu Port at present, and later Sapangar Bay Container Port, the shipping and transshipment hub of BIMP-EAGA and the region.

Sapangar  Bay Container Port, being built a cost of about RM400 million is scheduled to be operational in the first quarter of 2007. By then the container at Kota Kinabalu Port would be moved to Sapangar, leaving behind the non-container operations.

Sapangar Bay Container Port would have a 500 meters jetty with 12 meters depth alongside and two inner berths of 200 meters each. On shore facilities include a 15-hectare container yard and CFS, equipment. The annual throughput capacity is expected at 350,000 TEUs per annum.

By: Sabah Ports Sdn. Bhd.