Labuan Port Strengthens Role As Oil And Gas Support Hub

LABUAN, April 7 (Bernama) -- Labuan Port continues to play a strategic role as an industrial support hub, particularly for the oil and gas sector, with about 70 per cent of its cargo activities linked to the industry.

Megah Port Management Sdn Bhd (MPM) said oil and gas cargo dominates port operations, involving the handling of industrial equipment as well as a small volume of chemicals, pipelines and other energy-related components, positioning Labuan Port as an important support base for the sector in the Borneo region.

The matter was highlighted during a working visit and briefing session with Deputy Finance Minister Liew Chin Tong at Labuan Port today.

General cargo accounts for up to 30 per cent of total activities, comprising consumer-related goods such as construction materials. 

However, the volume remains limited compared to other ports due to more efficient logistics chains via land routes and ferry services from mainland Sabah.

Meanwhile, consumer cargo contributes less than four per cent, covering selected commodities such as rice, sugar, frozen food including poultry, meat and fish, as well as duty-free food and beverage products for the local market.

MPM explained that the relatively low volume of consumer cargo handled at the port is influenced by logistics patterns, with more than 80 per cent of goods entering Labuan transported by land from Sabah using lorries before being shipped via roll-on roll-off (Ro-Ro) ferry services between Menumbok and Labuan.

“This method is more flexible and cost-effective for importers, making the port less utilised for consumer cargo,” it said.

As such, Labuan Port continues to function primarily as an industrial support port, particularly for oil and gas-related activities.

The Finance Ministry delegation’s visit aimed to enhance understanding of the port’s role in supporting economic, trade and industrial activities in the Federal Territory of Labuan.

MPM is the port operator appointed by the Ministry of Transport through the Labuan Port Authority, responsible for managing terminal operations, wharf activities and overall shipping coordination.

The Deputy Finance Minister and delegation also visited the port jetty to observe operational facilities and cargo handling processes firsthand.

Megah Port Management is part of the Labuan-based Lion Logistics Group, which has over 30 years of expertise in logistics, maritime and transportation at both national and regional levels.

-- BERNAMA