Megah Port Management, Labuan Port Authority Ink Agreements To Boost Port Operations
By Jailani Hasan
KUALA LUMPUR, March 17 (Bernama) -- Megah Port Management Sdn Bhd (MPM) and the Labuan Port Authority (LPA) today signed the operation, facility and management continuation agreement and the leasing agreement aimed at further strengthening port operations and maritime services on this duty-free island.
The agreements signed here on Monday (March 16) will see MPM continuing to manage and operate Labuan Port for a six-year period from April 1, 2026, until March 31, 2032.
MPM managing director Datuk Seri Patrick Tiong said the agreement reflects the federal government’s continued confidence in the company’s capability to manage and develop the port.
“We would like to express our sincere appreciation to the Ministry of Transport (MOT) and the LPA for the confidence and trust placed in MPM to continue serving the maritime industry here,” he said in his speech at the signing ceremony yesterday.
The signing was witnessed by MOT deputy director-general (policy) Datuk Normah Osman, LPA chairman Datuk Danyal Balagopal Abdullah and MPM chief executive officer Idjal Tahir.
Tiong signed on behalf of MPM, while Mizool Amir Mat Drus, general manager, signed for the LPA.
Tiong said MPM remains committed to working hand in hand with LPA to strengthen Labuan’s maritime ecosystem and restore the island’s prominence as a regional logistics and shipping hub.
He noted that Labuan’s strategic location along international shipping routes and its role in supporting offshore oil and gas activities, as well as trade with Sabah, Sarawak and neighbouring countries under the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area, make the port a key gateway for regional connectivity.
“Labuan holds tremendous potential. With strong collaboration between industry players and authorities, we believe the island can once again experience its glory days as a vibrant maritime and logistics centre in this part of Southeast Asia,” he said.
MPM took over the operations of Labuan Port in 2018 and has since introduced various operational improvements to enhance efficiency, safety, and service quality for port users.
Under MPM’s management, the port has enhanced its cargo handling operations, offshore logistics support, and maritime services, while maintaining consistent collaboration with regulators and enforcement agencies.
The company also continues to invest in operational upgrades and human capital development to improve productivity and service delivery at the port.
MPM has been recognised by several industry bodies for its contributions to the logistics and maritime sector, including commendations from professional logistics organisations and local industry associations for its commitment to operational excellence and port safety standards.
Labuan Port serves as an important maritime gateway supporting the island’s role as an offshore oil and gas service hub and the Labuan International Business and Financial Centre.
Apart from container and general cargo handling, the port also supports ship lay-up activities, offshore supply logistics, bunkering services and cruise vessel calls.
Tiong said ports today play a much broader role beyond cargo handling, serving as integrated logistics gateways that support trade, tourism and industrial activities.
“As Labuan continues to position itself as an international business and financial centre, the role of the port becomes even more critical in supporting the island’s economic aspirations,” he said.
He added that MPM would continue enhancing port facilities, strengthening safety compliance and expanding maritime services to meet the evolving needs of the shipping and offshore industries.
-- BERNAMA