By Harizah Hanim Mohamed
KUALA LUMPUR, Nov 10 (Bernama) -- Sapangar Bay Container Port (SBCP), through the synergy between Dubai-based DP World Plc and Sabah Ports Sdn Bhd (SPSB), is poised to integrate into DP World’s global network, strategically enhancing its role within Southeast Asia’s archipelagoes and enabling it to leverage the region’s rapid export growth.
The partnership between the two companies reached a new milestone this year with the transfer of the port's management to DP World, executed under joint-venture company DP World Sabah Sdn Bhd.
DP World Asia Pacific chief executive officer and managing director Glen Hilton said SBCP will gain enhanced connectivity to both regional and international ports, making it a more attractive destination for direct shipping line calls.
“SBCP holds a strategic position as a transshipment hub for the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) region, with proximity to major industrial and consumer markets like China, Japan, Taiwan, South Korea, and Australia.
“Through this partnership, SBCP will have improved access to our ports and terminals network, which can help reduce costs, shorten transit times, and provide more reliable shipping options, contributing to greater operational efficiency and competitiveness,” he told Bernama.
DP World’s network links SBCP with smaller regional ports within the BIMP-EAGA region and larger global hubs, granting cargo owners in Sabah access to global shipping routes where cargo can connect to transocean container ships.
DP World and SPSB established a strategic partnership in 2019 to explore SBCP’s potential as a regional hub, aiming to improve both landside and seaside connectivity across Sabah, reduce transit costs and times, and enhance performance standards in the state's supply chain.
Hilton emphasised that the partnership aligns with SBCP’s expansion plan to increase its terminal handling capacity to 1.25 million twenty-foot equivalent units (TEUs) by 2026.
“We will expand SBCP’s cargo handling and increase trade through Sabah, which will generate economies of scale for shipping companies and beneficial cargo owners, lowering logistics costs across the region,” he added.
Hilton noted that planned enhancements to SBCP’s cold chain storage and transport capabilities will support the export of fisheries products -- Sabah’s second-largest gross domestic product (GDP) contributor in 2022 -- and agricultural products, helping these industries access international markets more seamlessly.
This growth aligns with ASEAN’s strength in fishery exports.
In 2020, ASEAN member states accounted for nearly 22 per cent of global fishery production.
In the following year, ASEAN’s total exports of fish and crustaceans, mollusks, and other aquatic invertebrates to the rest of the world totalled US$13.7 billion (US$1 = RM4.38).
Discussing the impact on Sabah’s economy, Hilton highlighted that the state currently faces high logistics costs, partly due to limited direct shipping line calls and fewer economies of scale.
“Sabah also faces unique logistical challenges due to its terrain, large land area, and developing road infrastructure. Expanding port capacity and efficiency can help address these issues and reduce logistics costs,” he said.
Hilton explained that DP World’s connected supply chain solutions, which leverage innovative technologies to enhance cargo visibility, enable data-driven decision-making, and minimise disruptions in logistics.
“These technologies ensure goods move smoothly along critical trade corridors. As part of this partnership, DP World will deploy its suite of proprietary technologies across Sabah’s container logistics supply chain, automating processes such as container handling and tracking.
“This deployment will also enable real-time data collection and analysis, supporting predictive maintenance and preemptive identification of bottlenecks to optimise port workflows and reduce operational delays. DP World’s automation and artificial intelligence solutions will help minimise errors and improve planning accuracy,” he added.
This synergy also reflected a broader trend in ASEAN, as authorities of Indonesia's Batam Island recently launched direct shipments from Batu Ampar Port to Guangzhou and Shenzhen in China to enhance bilateral trade.
The direct shipping service was introduced through a partnership between Persero Batam, the Batam Concession Agency, and Hong Kong-based shipping logistics firm SITC International Holdings.
Meanwhile, McKinsey & Company, in a report focusing on six countries in Southeast Asia, said that GDP growth in the second quarter (2Q) of this year accelerated in four of them -- Malaysia, the Philippines, Thailand, and Vietnam -- exceeding growth from the three previous quarters.
The report also noted that trade momentum in Southeast Asia remained robust in 2Q 2024, driven by strong global demand for chemicals and commodities, as well as a tech upcycle boosting demand for electronics and consumer devices.
Malaysia’s export growth more than doubled, from 2.0 per cent in the first quarter (1Q) to 5.8 per cent in 2Q, while Indonesia's export growth surged from 1.37 per cent in 1Q to 8.28 per cent in 2Q.
-- BERNAMA
