Operations at Sabah’s main container terminal have improved significantly, with vessel layover times slashed from nearly two weeks to under 48 hours, Sabah deputy chief minister III Datuk Shahelmey Yahya said.

The change comes just six months after global logistics firm DP World took over the management of Sepanggar Bay Container Port in September 2024, through its subsidiary DP World Sabah Sdn Bhd.

Shahelmey who is also Sabah works minister said the improved efficiency follows a series of operational changes implemented under the new management.

“Last time the issue was about two weeks they layover. Now, based on the latest presentation, it’s less than 48 hours,” he said during a visit to the port on Wednesday.

The port had previously experienced severe congestion. In mid-2024, ships waited up to 13 days to dock, prompting concerns about rising costs for traders and potential price increases for goods. 

At the time, port operators had considered imposing a congestion surcharge, including higher demurrage fees, but this was eventually called off following intervention by local authorities and industry representatives.

The situation led to the establishment of the Sabah Logistics Council, tasked with addressing long-standing infrastructure issues, streamlining port operations, and avoiding future supply chain disruptions.

Despite operational gains, a major infrastructure upgrade to the port has fallen behind schedule. 

The RM1 billion expansion project, initially expected to be completed in 2025, is now only 18% finished and has been rescheduled for completion in 2026.

“We hope there will be no further issues that could delay the project. It has already been set back quite a bit,” said Shahelmey.

The project aims to double the quay length to 1km, deepen the waterway to 15 metres, and raise the terminal’s annual capacity from 500,000 to 1.2 million twenty-foot equivalent units (TEUs).

Additional changes at the port include the relocation of roll-on/roll-off (RoRo) services from the old Kota Kinabalu Port to Sepanggar starting 1 April. The move is intended to consolidate port activities and improve vehicle handling efficiency.

Separately, ferry terminal upgrades for the Labuan–Kota Kinabalu route are also under way and are expected to be completed in the first week of May.

The Sabah government says it remains committed to enhancing logistics performance as part of a broader push to position Sepanggar as a regional transshipment hub in Southeast Asia. – March 27, 2025