Latest news with #SabahTimberIndustriesAssociation
Daily Express
25-05-2025
- Business
- Daily Express
POIC Lahad Datu Port offers support
Published on: Sunday, May 25, 2025 Published on: Sun, May 25, 2025 Text Size: The POIC Lahad Datu Port. LAHAD DATU: POIC Lahad Datu Port is offering its facilities as an alternative for traders and shippers in the State's east coast who have been affected by congestion at Tawau Port. The port, located within POIC Lahad Datu Industrial Park, is positioning itself as a ready and convenient option for cargo movement. 'We are seeking to clear up what we believe to be some gaps in understanding POIC's port capacity and its commitment to complementing trade, particularly among port users, including the Sabah Timber Industries Association (STIA),' said Datuk Fredian Gan, Group Chief Executive Officer of POIC Sabah Sdn Bhd. He said the State-owned company develops and operates the port, which includes dedicated terminals for container cargo, liquid bulk such as crude palm oil and dry bulk cargo including fertilisers. Subscribe or LOG IN to access this article. Support Independant Journalism Subscribe to Daily Express Malaysia Access to DE E-Paper Access to DE E-Paper Exclusive News Exclusive News Invites to special events Invites to special events Giveaways & Rewards 1-Year Most Popular (Income Tax Deductible) Explore Plans Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
24-05-2025
- Business
- Borneo Post
POIC Lahad Datu Port offers support to east coast traders
Gan LAHAD DATU (May 24): The ports at POIC Lahad Datu industrial park here are a ready and convenient alternative to merchants and shippers in the east coast of Sabah. Traders troubled by congestion at the Tawau Port can look to the POIC Lahad Datu Port as their port of choice. 'We are seeking to clear up what we believe to be some gaps (in understanding POIC's port capacity and its commitment to complementing trade) with the port users, including the Sabah Timber Industries Association (STIA),' said Datuk Fredian Gan, the Group Chief Executive Officer of POIC Sabah Sdn Bhd. The state-owned company, POIC, develops and operates the POIC Lahad Datu Port, which has dedicated terminals for container cargo, liquid bulk cargo such as crude palm oil, and dry bulk cargo including fertilizers. Users of the Tawau Port, managed by Sabah Ports Sdn Bhd have recently been affected by handling congestion at its container terminal due to equipment breakdown. 'The breakdown and the resulting congestion are unfortunate. In the interim, we (POIC Lahad Datu Port) like to offer ourself as an alternative,' said Gan. The POIC port, situated within the industrial park, has been operational for over a decade. It commenced operations in 2013 with the dry and liquid bulk terminals, followed by the container terminal in 2019. On 29th June 2022, the port was officially declared a public port which opened access to regional and international shipping activities. Investors at POIC Lahad Datu view the port-within-a-park concept as a unique advantage for the efficient movement of goods. 'We have an experienced port crew operating an excellent set of port facilities,' said Gan; alluding to recent handling of super heavy-duty, containerised batteries for the 100MWno Battery Energy Storage System of the Sabah Electricity Sdn Bhd. The system, placed at Dam Road, Lahad Datu, is targeted to begin operation this June.
Daily Express
23-05-2025
- Business
- Daily Express
Mounting losses over inaction
Published on: Friday, May 23, 2025 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. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
22-05-2025
- Business
- Daily Express
Timber exporters face mounting costs as Tawau Port issues persist: STIA
Published on: Thursday, May 22, 2025 Published on: Thu, May 22, 2025 Text Size: Containers stuck at Tawau Port due to congestion. - Supplied pic Sabah Timber Industries Association (STIA), on Thursday, expressed disappointment that promised repairs at Tawau Port remain incomplete, despite Sabah Ports Sdn Bhd's assurance that operations would resume by May 21. STIA president Tan Peng Juan said exporters are facing mounting costs and delays, with 87 containers still stuck at the port and 99 more awaiting shipment, amid a worsening backlog caused by non-functional cranes. Tan said at least two vessels had recently bypassed Tawau Port due to severe congestion, and the lack of an updated timeline from port authorities has further undermined industry confidence. He added that alternatives such as rerouting shipments to Sandakan are not viable, given high transportation costs and limited handling capacity, leaving businesses with few practical options. Tan called for urgent transparency from Sabah Ports, including weekly updates, temporary relief measures, and stronger accountability to prevent further economic harm to Tawau and Sabah's export sector. * 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. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
10-05-2025
- Business
- Daily Express
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. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
