Labuan Freight Forwarders Association Optimistic Over Megah Port’s Performance

By Jaillani Hasan

LABUAN, March 18 (Bernama) -- The Labuan Freight Forwarders Association (LFFA) has expressed optimism over the performance of Megah Port Management Sdn Bhd (MPM) in managing and handling operations at Labuan Port.

LFFA president Prunella Phoong said the association has improved in efficiency, facilities and service delivery since MPM took over the port in 2020.

“We observed steady progress in port operations, particularly in terms of cargo handling efficiency, turnaround time and overall service quality, which have contributed positively to the logistics and trade ecosystem in Labuan.

“We are encouraged by the improvements implemented by MPM since taking over the operations in 2020. The enhancements in facilities and services have strengthened confidence among freight forwarders and port users,” she told Bernama today.

Phoong added that MPM’s proactive approach in engaging industry players (port users) and addressing operational challenges has helped create a more conducive and reliable environment for maritime and logistics activities on the duty-free island.

She also welcomed the recent signing of the Operation, Facility and Management Continuation Agreement and Leasing Agreement between MPM and the Labuan Port Authority (LPA), describing it as a positive step towards ensuring continuity and long-term stability in port operations.

“The continuation agreement reflects the confidence of the authorities in MPM’s capabilities and provides assurance to industry stakeholders that ongoing improvements and investments will be sustained,” she said.

The agreement, which takes effect from April 1, 2026 until March 31, 2032, underscores the commitment of both MPM and LPA to further enhance Labuan Port’s competitiveness as a key maritime gateway in the region.

“Since assuming operations, MPM has undertaken various upgrades to port infrastructure and introduced operational enhancements aimed at improving efficiency, including better cargo handling systems and strengthened coordination with relevant stakeholders,” she said.

The company’s performance has also gained recognition from industry players, which includes the LFFA, and external bodies such as the Chartered Institute of Logistics and Transport (CILT), reflecting growing confidence in its role in revitalising Labuan’s maritime sector.

Phoong said the association remains hopeful that continued collaboration between MPM, LPA and industry stakeholders will help restore Labuan Port’s position as a vibrant and competitive hub for regional trade and logistics.

-- BERNAMA