Sabah Ports reaffirms commitment to Tawau Port

Borneo Post

23-05-2025

KOTA KINABALU (May 23): Sabah Ports Sdn Bhd (SPSB) is addressing recent concerns raised by the Sabah Timber Industries Association (STIA) regarding operational challenges at Tawau Port.
In line with its commitment to transparency and collaboration, SPSB held a stakeholder engagement session on May 14 in Tawau, attended by representatives from STIA, the Tawau Chinese Chamber of Commerce, the Sabah Shipping Agents Association and the Tawau Forwarding & Lorry Association, alongside officials from the Sabah Ports Authority and SPSB senior management. The session focused on immediate and long-term solutions, including the procurement of two new ship-to-shore gantry cranes, expected to arrive later this year.
'As of 2pm on May 22, one crane has been fully restored and operational, with all safety systems in place. Work on the second crane is ongoing, supported by internal engineers, independent crane specialists, and technical experts from the original manufacturer. Safety and operational sustainability remain our top priorities,' SPSB said in a statement today.
SPSB added it had committed to prioritizing 200 STIA containers scheduled for May 24, with interim measures in place, including the use of shipboard cranes if port cranes were unavailable. While SPSB upheld its part of the agreement, the shipment was canceled due to the shipping line omitting Tawau from its schedule — a factor beyond its control.
'We disagree with claims that temporary equipment issues are the sole cause of backlogs, as alternative solutions were discussed and SPSB maintained operational readiness. We encourage STIA members to diversify shipping partners to reduce reliance on a single provider,' said SPSB.
As a self-funded port operator, SPSB said it is investing RM70 million in two new quay cranes to enhance Tawau Port's capacity and reliability.
'We remain committed to transparency, stakeholder engagement, and uninterrupted service,' said the company.
Its immediate focus is on fully restoring the second crane, ensuring smooth operations with the currently functional crane and maintaining open communication with all stakeholders.
'We will continue providing updates and welcome further engagement with STIA and industry partners,' said SPSB.
STIA president Tan Peng Juan said on Thursday that the critical issues affecting Tawau Port remain unresolved to this day, impacting both outbound and inbound cargo and causing severe economic challenges.
'We were given assurances by Sabah Ports Sdn Bhd and the relevant authorities during the stakeholders' dialogue on 14 May 2025. Sabah Ports also assured us, in a letter dated 16 May 2025, that the facility would become operational within three to four days,' he said in a statement.
He added that STIA met with Deputy Chief Minister III Datuk Shahelmey Yahya, who is also Sabah Works Minister, in a meeting last week attended by representatives from Sabah Ports Sdn Bhd, the Sabah Ports Authority, the Sabah Freight Forwarders & Logistics Association and the Sabah Shipping Agents Association.
'During the session, stakeholders were given assurances that crane repairs at Tawau Port would be completed and full operations would resume by 21 May 2025. It was stated that the expert technical team assigned to carry out the crane repairs was making steady progress, with ongoing work focused on restoring the equipment to full operational capacity as soon as possible,' said Tan.
'Unfortunately, to date, the promised restoration has not materialised, and there has been no positive official update on a revised timeline. This continued inaction has further strained industry players and heightened frustrations among exporters, who continue to face costly delays and operational setbacks,' he lamented.