Mohd Faizal Malik
KOTA KINABALU: Sabah needs to diversify and optimise its port capacity to overcome congestion issues and strengthen its position as a regional trade and logistics hub, said The Chartered Institute of Logistics and Transport Malaysia (CILTM) Sabah Section Deputy Chairman Ts Mohd Faizal Malik.
He said the recent congestion affecting cargo movement through ports operated by Sabah Ports Sdn Bhd should serve as a strategic wake-up call for the State’s logistics and trade ecosystem.
“As Sabah continues to grow as a gateway for regional and international trade within the BIMP-EAGA corridor, relying heavily on a limited number of operational gateways is no longer sustainable,” he said in a statement.
Mohd Faizal said port congestion not only affects shipping schedules but also creates a chain reaction throughout the supply chain, including higher logistics costs, cargo clearance delays and disruptions to manufacturing timelines.
“It also affects exporters and importers while weakening Sabah’s competitiveness as an investment destination,” he said.
According to him, Sabah’s ambitions in industrialisation, downstream processing, palm oil exports, fisheries, manufacturing and halal logistics require a more resilient and diversified maritime logistics strategy.
He said one of the most practical immediate solutions is to optimise and utilise alternative ports across Sabah to complement existing major port operations.
Among the strategic alternatives available is POIC Lahad Datu through its integrated port and industrial facilities under POIC Sabah Sdn Bhd.
Mohd Faizal said the port infrastructure within the Palm Oil Industrial Cluster (POIC) already includes operational facilities such as general cargo terminals, liquid bulk terminals, container terminal facilities and industrial waterfront access.
“The strategic advantage of POIC Lahad Datu lies not only in its maritime facilities, but also in its proximity to major palm oil plantations, downstream processing industries, fisheries activities and potential BIMP-EAGA trade routes involving Indonesia, Brunei Darussalam and the southern Philippines,” he said.
He added that distributing selected cargo flows to alternative ports such as POIC Lahad Datu would help reduce operational pressure on congested ports while stimulating economic activities on Sabah’s east coast.
In the medium and long term, Mohd Faizal proposed several strategic measures, including establishing a statewide port coordination framework, enhancing inter-port connectivity and accelerating industrial port development.
He also called for Sabah to position itself as a regional transshipment and BIMP-EAGA logistics hub by leveraging its geographical advantages and improving collaboration between government agencies, port operators, logistics players, shipping lines and investors.
“Port congestion should not merely be viewed as an operational problem. It should be seen as an opportunity to redesign Sabah’s logistics ecosystem into a more decentralised, efficient and investment-friendly network,” he said.
Mohd Faizal stressed that Sabah already possesses the strategic assets, geographical advantages and industrial potential needed to become a stronger maritime and logistics hub in the region.
“What is needed now is coordinated execution, infrastructure readiness and the political will to diversify and optimise the State’s port capabilities for the future economy,” he added.
