THE state government through the Sabah Economic Development and Investment Authority (Sedia) has been allocated with RM1.027 billion by the federal government to develop the Sepanggar Container Port (SBCP) which will become the Transhipment Hub of the East.
Infrastructure Development Minister Tan Sri Joseph Pairin Kitingan said the project was expected to be completed by 2020.
“The huge fund injection signifies the government’s commitment to ensure the port infrastructure could spur development in the state,” he said in his winding up speech at the State Legislative Assembly yesterday.
Pairin explained that the SBCP has the capacity to achieve the cargo volume of more than 1.25 million TEUs (twenty-foot equivalent units) per annum by 2030 and will be at par with other ports such as Pulau Pinang and Johor.
He said the port was also expected to act as a port hub for other ports in East Malaysia for shipping operations in BIMP-EAGA, Asean, Far East Asia and the South Pacific.
However he reminded that the success of SBCP as a Transhipment Hub of the East was not merely dependent on infrastructure development.
“It is also governed by the increase of Sabah’s export value,” he said.
“Products of the industrial and agricultural sectors should be able to generate enough cargo to offset trade imbalances and hence, reduce the shipping cost to the state because these costs will no longer involve the cost of shipping back empty containers. The ability to attract investors from within and outside the state is very important in increasing the export value,” he said.
Aside from that, the state government must also attract main line operators who will use SBCP as their main operation centre, he said.
“At present, a company from China has shown its interest to operate at SBCP. A company such as this will be able to attract containers from China,” he said.
Pairin also stated that his ministry had already submitted its application for the formation of the National Transportation Council to the Transport Ministry.
He said the application had been approved by the Transport Ministry and would be brought to the Federal Cabinet.
He explained that the council will look at the overall weakness of the land, air and sea transport system, which is the main reason for the high cost of living and costs of streamlining business in Sabah.
“It will have jurisdiction over all aspects of the transport and logistics system in the country and will have authority on all government departments and agencies related to transport and logistics.”
He added that the establishment of this council was also in line with the empowerment agenda or empowerment (devolution) to the state government.
“On sea transport, the council functions to ensure the adjustment of the shipping freight charges and port charges including warehouse terminal handling charges, bunker surcharge and others. Port efficiency will also be improved, especially in the movement per hour for loading and unloading in all ports, especially in Sabah.”
He added that with the council’s establishment, it was hoped that the Cabotage Policy issue which was often discussed could be resolved and the high cost of living and high cost of doing business in the state could be optimally reduced.