DP World and Malaysia's Sabah Ports Sdn. Bhd has established a partnership to manage Sapangar Bay Container Port (SBCP), cementing the latter's position as the premier regional trade hub for the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).
Sabah Ports Sdn. Bhd is a wholly owned subsidiary of Suria Capital Holdings Bhd, a Malaysian public-listed investment holding company.
DP World said with this partnership, it will support efforts currently underway to increase SBCP's container handling capacity from 500,000 TEUs to 1.25 million TEUs by 2025.
Investments will also be made to optimise terminal workflows, accelerate digitalisation for greater operational efficiency and increase the port's connectivity.
"With its strategic location and abundance of natural resources, Sabah is well-positioned to reap the immense growth opportunities in the BIMP-EAGA region and beyond. Sapangar Bay Container Port plays a critical role in realising these ambitions. We are honoured to bring our experience in operating ports, to support SBCP's transformation journey," said Sultan Ahmed bin Sulayem, group chairman and CEO of DP World.
In collaboration with Sabah Ports, DP World aims to improve SBCP (Sabah Ports Container Port) by implementing the best industry practices to make it a hub port for BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area) markets.
This will be supported by a continuously expanding network of inland container depots, industrial parks, logistics parks and free zones throughout Sabah.
"Sapangar Bay Container Port is an important driver of development in Sabah. As we consider the future of SBCP, we are pleased to have onboard a partner like DP World who will lend their global expertise in managing ports and building supply chain networks to help optimise SBCP's operations, which in turn will catalyse increased trade through Sabah and benefit communities and businesses around the state," said Datuk Ng Kiat Min, managing director for Sabah Ports Sdn. Bhd.
She noted that the partnership with DP World could potentially address the challenges of high logistics cost faced in Sabah through the establishment of a strong shipping network and expansion of the cargo base.
"The venture is expected to not only impact Sabah's shipping and logistics industry but will also lead to economic growth in view of market confidence, thus attracting economic investments and infrastructural upgrades in transport, logistics and along the supply chain," Datuk Ng Kiat Min added.
This is a new milestone in the long-term collaboration between DP World and Sabah Ports.
In 2019, the two parties signed an agreement to jointly develop solutions to enhance SBCP's competitiveness and drive cargo creation in Sabah’s hinterlands.
In the long run, the vision of the collaboration is to improve landside and seaside connectivity throughout Sabah, reduce transit costs and time, and raise performance standards across the state's entire supply chain.
DP World noted Sabah's huge potential as a destination for business and industrial development.
It said within just a 5-day sail-time radius from the state is an area home to more than 2.2 billion people and accounting for over 40% of global manufacturing output.
Sabah is also rich in natural resources, such as timber and oil. Its fisheries sector holds particular importance and was the second-largest contributor to Sabah's GDP in 2022.
"With projected enhancements to SBCP's cold chain storage and transport capabilities, such agricultural products can be more seamlessly processed and exported to international markets, thereby opening new avenues for growth," DP World said in its announcement.
The agreement was signed by Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, and Datuk Ng Kiat Min, managing director for Sabah Ports Sdn. Bhd.
