KOTA KINABALU: N19 Likas Assemblyman Tham Yun Fook expressed deep concern over the increasingly severe port congestion situation in Sabah, which is now having a major impact on industry players, manufacturers, logistics operators, and the stability of the state’s supply chain.
He said the concern is also shared by Federation of Malaysian Manufacturers (FMM) Sabah as well as various parties in the business and logistics sectors who are increasingly affected by the current conditions at Sepanggar Port.
According to him, more and more industry players are coming forward to voice concerns that operations at Sepanggar Port are now in a state of disorder, disrupting business activities and cargo deliveries.
He said some companies claim that container pile-ups at the port have become so serious that they face difficulties locating their own containers within a short period of time, resulting in delivery delays and increased operating costs.
At the same time, he said shipping surcharges, detention charges, demurrage fees, and transportation costs continue to rise, and ultimately these burdens will be passed on to consumers through higher market prices.
According to Tham, Sabah has long faced higher logistics and transportation costs compared to Peninsular Malaysia, and if the port congestion issue is not resolved immediately, it will continue to weaken investment attractiveness, affect industrial competitiveness, and impact the state’s economic development.
He also raised questions regarding the effectiveness of the management of Sepanggar Port following the takeover of operations by DP World in September 2024.
He said that when the takeover was announced, various commitments were made, including improving port efficiency, shortening delivery times, reducing overall logistics costs, and strengthening Sabah’s supply chain system.
However, according to him, to date the congestion problem has yet to show any significant improvement, and the situation appears to be worsening.
As such, Tham raised several important questions, including the actual status of the upgrade plans and investments promised following the takeover by DP World.
He also questioned whether upgrades involving facilities and equipment such as cranes, prime movers, and container handling systems have been fully implemented.
In addition, he sought clarification on whether the current equipment breakdowns, container congestion, and operational weaknesses are due to management weaknesses, implementation failures, or poor infrastructure planning.
According to him, the state government cannot continue to merely “monitor the situation” but must immediately conduct a comprehensive review and openly explain the actual performance following the takeover by DP World.
He also urged Chief Minister Hajiji Noor to personally coordinate all relevant parties, including port management, logistics and transportation agencies, as well as Federal authorities, to formulate immediate solutions before the situation becomes more critical.
In the same statement, Tham also voiced concern over the newly introduced “Congestion Surcharge” and warned that additional costs arising from operational inefficiencies should not be fully transferred to businesses and the public.
He said ports are among Sabah’s most important economic lifelines because operational efficiency directly affects the manufacturing, trade, construction sectors, and the overall stability of the state’s supply chain.
He added that if the problem continues, it will not only threaten the survival of business companies but also potentially slow Sabah’s overall economic recovery and development.
Therefore, he hopes the state government will address the issue in a transparent, practical, and immediate manner, while providing regular updates to the public and industry players in order to restore market and investor confidence.
