DP World and Malaysia's Sabah Ports have forged a partnership aimed at enhancing the management of Sapangar Bay Container Port (SBCP), solidifying its stature as the primary regional trade hub within the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).
Sabah Ports, a wholly owned subsidiary of Suria Capital Holdings, a Malaysian publicly listed investment holding company, is part of this collaboration.
The agreement was sealed by Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, and Datuk Ng Kiat Min, managing director for Sabah Ports, which marks a significant step forward.
Under this alliance, DP World will lend its support to ongoing initiatives aimed at boosting SBCP's container handling capacity from 500,000 TEUs to 1.25 million TEUs by 2025. Investments will also be channelled towards optimizing terminal operations, advancing digitalization efforts for heightened operational efficiency, and bolstering the port's connectivity.
“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,” stated Datuk Ng Kiat Min, managing director for Sabah Ports.
“The synergy with DP World can potentially address the challenges of high logistics cost faced in Sabah, through the establishment of a strong shipping network and expansion of 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,” added Datuk Ng Kiat Min.
This latest achievement marks a significant milestone in the ongoing collaboration between DP World and Sabah Ports. Back in 2019, the two parties inked an agreement aimed at jointly developing solutions to enhance the competitiveness of SBCP and stimulate cargo generation in Sabah's hinterlands.
Looking ahead, the overarching vision of this partnership is to enhance both landside and seaside connectivity across Sabah, thereby reducing transit costs and time while elevating performance standards across the entire state's supply chain.
Furthermore, Sabah holds immense potential as a hub for business and industrial expansion. Situated within a five-day sail-time radius from the state lies an area teeming with over 2.2 billion people, accounting for more than 40% of global manufacturing output. Additionally, Sabah boasts abundant natural resources, including timber and oil. Notably, its fisheries sector emerged as the second-largest contributor to Sabah's GDP in 2022.
Moreover, with anticipated enhancements to SBCP's cold chain storage and transportation capabilities, agricultural products from the region can be seamlessly processed and exported to international markets, unlocking fresh avenues for economic growth.
