Interim Action Plan to Alleviate Congestion at Sapangar Bay Container Port

6 February 2026

KOTA KINABALU: The Sabah Ministry of Industrial Development, Entrepreneurship and Transport has taken note of the issues raised recently regarding congestion at Sapangar Bay Container Port.

In this regard, the Ministry, together with relevant agencies, has formulated and coordinated an Interim Action Plan as a temporary mitigation measure pending the completion of the ongoing port expansion project.

In a statement issued by the Ministry today, the interim plan, which has been approved by the State Cabinet, focuses on optimising existing capacity, improving the efficiency of container flow management, and strengthening enforcement of port operational regulations.

The key measures that have been formulated and will be implemented are as follows:

Establishment of a temporary additional container yard

A temporary additional container yard near Sapangar Bay Container Port will be established to increase container storage capacity and reduce congestion within the port area. This facility is expected to commence operations by the end of March 2026, subject to the completion of site preparation works and related operational requirements.

Immediate implementation of revised tariff rates (revised deterrent charges)

Revised container storage tariff rates will be implemented to encourage faster clearance of containers, thereby reducing congestion in container storage areas.

Enforcement actions against containers exceeding the permitted storage period

Under Section 46 of the Sabah Ports Authority Enactment (LPPS) 1981, the Sabah Ports Authority (LPPS) has the power to dispose of or auction containers stored beyond the prescribed period. Accordingly, the port operator and LPPS will issue official notices to the relevant container owners, directing removal within a specified timeframe before further action, such as disposal or auction, is undertaken.

Reduction of free container storage period during peak season

The free storage period will be reduced from five (5) days to three (3) days during the peak season. This measure aims to increase container turnover rates and reduce congestion when the port is operating at high capacity utilisation levels.

Provision of a trailer parking site at Kota Kinabalu Industrial Park (KKIP)

To support smoother logistics operations, a trailer parking site at KKIP has been identified for use. This initiative is intended to reduce congestion within the port area and facilitate smoother inbound and outbound movements of trailers and containers.

Implementation of a Vehicle Booking System (VBS)

All transport companies involved will be required to fully utilise the Vehicle Booking System (VBS) as part of operational requirements, to ensure more orderly and controlled vehicle movements.

Alignment of operating hours of Government Agencies at Sapangar Container Port

To expedite cargo assessment and clearance processes, all relevant government agencies will implement overtime operations or support mechanisms beyond normal office hours, including weekends and public holidays. This measure is intended to ensure continuous approval processes in line with the port’s 24-hour operations.

Upgrading and addition of equipment at Sapangar Bay Container Port

The port operator will take proactive steps to enhance the availability of container-handling equipment through the addition of machinery and operational support equipment. This approach enables an immediate increase in operational capacity without having to wait for full long-term investments.

Overall, the implementation of this interim action plan is critical in meeting immediate operational needs and delivering direct impact in reducing congestion.

The Ministry is confident that these measures will help maintain the competitiveness of Sapangar Bay Container Port, ensure the continuity of the supply chain, and preserve the confidence of industry players and investors until the port expansion is fully completed.

The Ministry will continue to closely monitor the implementation of these measures and work collaboratively with all stakeholders to ensure effective execution and continuous improvement in the interest of Sabah’s economic development.