Mounting losses over inaction
Published on: Fri, May 23, 2025 Text Size: Tan (left) and cargo containers piling up at the Tawau Port. Kota Kinabalu: Timber exporters in Sabah are facing escalating financial losses as operational issues at Tawau Port remain unresolved, despite repeated assurances from authorities that repairs would be completed by this week. The Sabah Timber Industries Association (STIA) expressed frustration, Thursday, as promises made during a high-level stakeholder meeting on May 14 have not materialised, leaving the industry in continued crisis. Following a meeting with Deputy Chief Minister III Datuk Shahelmey Yahya last week, industry players were assured that crane repairs at Tawau Port would be completed and full operations would resume by May 21. However, as at press time, the promised restoration has not happened. 'There has been no positive official update on the revised timeline,' said STIA President Tan Peng Juan. 'This ongoing inaction has further strained industry players and heightened frustrations among exporters who continue to face costly delays,' he said.
Advertisement The port's problem stems from the breakdown of its only two operational cranes, with one remaining non-functional for over a year. This has rendered Tawau Port virtually inoperable, creating a bottleneck for the State's timber trade. The situation has deteriorated, with 87 containers currently stranded at the port and another 99 awaiting shipment. The congestion has become so severe that at least two vessels have decided to delay or skip Tawau port entirely over the past three days. This operational paralysis is forcing exporters to seek costly alternatives. Many are now transporting containers to Kota Kinabalu at a steep cost of RM4,000 per container, escalating production expenses. Sabah Ports Sdn Bhd's proposal to redirect shipments to Sandakan Port has been rejected by the association as impractical. STIA argues that Sandakan Port cannot handle the additional cargo volumes, while the high trucking costs make the option financially prohibitive. Transportation costs to Sandakan are about RM3,000 per 40-foot container and RM2,000 per 20-foot container, excluding additional expenses such as customs documentation, container movement fees and other discharge costs. The port disruption is affecting both outbound and inbound cargo, creating broader economic challenges for Tawau. With supply chains stalled and trade activities hampered, local businesses and residents are bearing the brunt of the operational failures. Exporters are incurring additional demurrage and container storage costs, while buyer confidence continues to erode due to persistent delays. STIA called for immediate action from Sabah Ports, demanding transparent updates on crane repair status and realistic timeline, deployment of temporary equipment to alleviate congestion and weekly progress reports to stakeholders for accountability. 'Without urgent intervention and concrete progress, Tawau Port risks long-term reputational damage and further deterioration in trade activity,' said Tan. The association expressed appreciation for Shahelmey's commitment to monitor the situation closely, while urging Sabah Ports Sdn Bhd to take serious remedial action. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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