Concern over Tawau Port congestion
Published on: Saturday, May 10, 2025
Published on: Sat, May 10, 2025 Text Size: Tan said exporters are considering transporting containers by road to Kota Kinabalu at an added cost of RM2,000 per container, a burden the industry cannot afford due to high production costs and sluggish global demand. Kota Kinabalu: The Sabah Timber Industries Association (STIA) voiced strong concerns over the worsening congestion at Tawau Port, which it says is severely disrupting export operations and threatening the viability of local businesses. The association pointed to long-standing issues with inadequate port facilities, particularly the breakdown of the port's only two operational cranes that have yet to be resolved despite assurances of repairs. 'The situation remains unchanged. Shipments are delayed, exporters are incurring demurrage fees and container space rental costs, and vessel schedules are being cancelled,' said STIA President Tan Peng Juan. 'Most notably, we've been informed that the vessel scheduled to call at Tawau Port on May 11 has been cancelled. This only worsens the logistical bottlenecks and could result in higher costs, disrupted supply chains and serious operational setbacks for industry players,' he added. Tan was commenting on a report by a local Chinese paper which highlighted the issue on its May 1 publication. He revealed that 80 containers have been stuck at the port since April 18, with an additional 96 awaiting shipment. He said exporters are considering transporting containers by road to Kota Kinabalu at an added cost of RM2,000 per container, a burden the industry cannot afford due to high production costs and sluggish global demand. Tan also warned that the reduced frequency of vessel calls from once or twice weekly to once every two weeks is a direct result of inefficiencies at the port. 'We urge the Sabah Government, particularly the Ministry of Public Works and Sabah Ports Sdn Bhd, to take immediate and long-term measures to improve Tawau Port's facilities and management,' Tan stressed. STIA cautioned that if the issue persists, the price of goods may rise due to increased logistics costs, ultimately affecting the cost of living in Sabah. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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