DP World and Sabah Ports to Bolster Handling Capacity at Sapangar Bay Container Port in East Malaysia

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DP World Sabah Ports Sdn. Bhd

DP World and Malaysia’s Sabah Ports Sdn. Bhd have established a partnership to manage Sapangar Bay Container Port (SBCP) to cement SBCP’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 Malaysian public-listed investment holding company Suria Capital Holdings Bhd. Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, and Datuk Ng Kiat Min, Managing Director for Sabah Ports Sdn. Bhd, signed the agreement.

With this partnership, DP World will support efforts 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.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said, “With its strategic location and abundance of natural resources, Sabah is well-positioned to reap the immense growth opportunities in the BIMPEAGA 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. In partnership with Sabah Ports, we will apply industry-leading practices to elevate SBCP into a hub port for BIMP-EAGA markets, supported by an ever-growing network of inland container depots, industrial parks, logistics parks and free zones across Sabah.”

Datuk Ng Kiat Min, Managing Director for Sabah Ports Sdn. Bhd., said, “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.”

“The synergy with DP World can potentially address the challenges of high logistics cost faced in Sabah through establishing a strong shipping network and expanding cargo base. The venture is expected to impact Sabah’s shipping and logistics industry and lead to economic growth given market confidence, thus attracting economic investments and infrastructural upgrades in transport, logistics, and the supply chain,” she continued.

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.

Sabah has huge potential as a destination for business and industrial development. Within just a 5-day sail-time radius from the state, it 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 20223.

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.

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Ryan Finn
Ryan is the Digital Marketing and Content Creation Manager for Trade and Logistics Siam Ltd. He provides a creative flair to the team and his resourcefulness helps to bring an imaginative improvement to both literary archetypes and online content production. A writer by day and a rider by night, when he's not composing the latest logistics news update or creating compelling copy for our clients, Ryan spends his free time travelling Thailand by motorbike.