More foreign direct investment expected to come to Sapangar Bay Container Port

More foreign direct investment expected to come to Sapangar Bay Container Port

01 Aug 2023

The Sabah state government is expecting more foreign direct investment (FDI) coming to Sapangar Bay Container Port (SBCP) with the collaboration between Sabah Ports Sdn Bhd (Sabah Ports) and DP World.

Deputy Chief Minister III Datuk Shahelmey Yahya said the strategic partnership with the world’s fifth largest port operator is expected to start in 2024, in management and operation of SBCP as well as investment of logistics and supply chain infrastructure in Sabah.

“We are expecting more FDI after the collaboration, and I believe with this development more shipping companies will come to SBCP and other ports in Sabah, to ensure that the port or container activities will grow. This will certainly trigger economic growth in the state.

“As we all know, our main challenge is the lack of goods to be exported out of Sabah, and these are the initiatives that can be carried out by Sabah Ports together with their strategic partners to ensure economic growth.

“There are many industrial goods that we can export out, and this can definitely be translated into industrial development in Sabah, in line with the Sabah Maju Jaya plan,” he said to reporters after visiting Sabah Ports here on Tuesday.

Earlier, Shahelmey who is also the State Works Minister was briefed on the port’s operations.

With the on-going expansion of the SBCP that will be completed in 2025, Shahelmey also said there will be more economic activities that will take place and definitely bring a multiplier effect to the economic growth.

In his speech during the briefing, Shahelmey expressed the ministry’s full support towards positioning SBCP as a transhipment hub for the BIMP-EAGA region.

“Positioning SBCP as transhipment hub for the region will be a key element towards catalysing economic activities in the state and contributing to a substantial spill-over in the region.

“As such, effort to recognise SBCP’s transhipment hub potential must be accelerated as a way to address high logistics cost that has been long plagued the state. I hope that SBCP will be the leap factor, game changer and key transformation that will lead to lower logistics cost and enhance Sabah’s competitiveness,” he said.

Also present during the visit was Sabah Ports Managing Director, Datuk Ng Kiat Min.

Source: Borneo Post