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Borneo Post
23-05-2025
- Business
- Borneo Post
Sabah Ports reaffirms commitment to Tawau Port
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.
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
Borneo Post
09-05-2025
- Business
- Borneo Post
Works Ministry urged to resolve Tawau Port crisis
Tan KOTA KINABALU (May 9): The Sabah Timber Industries Association (STIA) has called on the Sabah Works Ministry to urgently address the longstanding issues plaguing Tawau Port, warning that inefficiencies are crippling businesses and disrupting supply chains. STIA president Tan Peng Juan cited a May 1, 2025 report highlighting the port's inferior facilities, which have caused severe logistical delays. 'These setbacks are hurting industries dependent on timely cargo processing,' he said in a statement today. Tan revealed that many export-bound containers remain stranded due to malfunctioning equipment. The port's only two cranes broke down weeks ago, and despite promises of repairs, the situation persists. This has led to shipment delays, demurrage fees, and rising container rental costs for exporters. Compounding the crisis, a vessel scheduled for May 11, 2025, has been canceled — a move that will worsen backlogs and strain businesses further. 'The cancellation disrupts supply chains, inflates costs, and hampers operations,' Tan stressed. He noted that the port's inefficiencies have already driven away shipping lines, with weekly feeder vessels reduced from one or two to just one every fortnight. 'Without urgent improvements, fewer vessels will call at Tawau, harming Sabah's economy,' he warned. The logjam has also spiked logistics costs, which could trigger higher consumer prices. STIA members currently have 80 containers stuck since April 18 and another 96 awaiting shipment. Diverting shipments to Kota Kinabalu Port would cost an extra RM2,000 per container — a burden businesses cannot afford amid rising production costs and weak global demand. STIA urged the government and Sabah Ports Sdn Bhd to act swiftly, demanding both immediate solutions and long-term upgrades to port infrastructure.
