Phoong: Measures Underway to Improve Sepanggar Port Efficiency

11 June 2025

KOTA KINABALU: The Ministry of Industrial and Entrepreneur Development has confirmed that several key measures are being implemented to improve efficiency and resolve congestion issues at Sepanggar Port, in collaboration with the port operator, DP World.

Its Minister, Datuk Phoong Jin Zhe, said the state government took proactive steps following feedback from logistics and transport industry stakeholders, including the Sabah Freight Forwarding & Logistics Association (SABFFLA), Persatuan Pengusaha Lori Kontena Kota Kinabalu (PPLKKK), and the Federation of Malaysian Manufacturers Sabah (FMM Sabah).

In response, the Minister conducted a working visit to Sepanggar Port to engage directly with DP World and gain a clearer understanding of the challenges faced on the ground.

“DP World has taken encouraging steps to improve operations. I was briefed on the addition of three new Rubber Tyred Gantry (RTG) cranes, which will strengthen yard-side operations and help address container movement bottlenecks,” Phoong said in a statement today.

Since DP World assumed control of Sepanggar Port in September 2024, various operational upgrades have been introduced to enhance overall port performance.

According to the Phoong, improvements on the wharfside have already resulted in significantly reduced vessel berthing waiting times, with no current vessel congestion reported.

“However, congestion remains an issue at the port entrance and container yard, primarily due to a sharp increase in export volume, especially from key exporters like Kibing Group.

“This surge has contributed to an 11 per cent year-to-date and year-on-year growth in twenty-foot equivalent units (TEUs) as of May 2025, demonstrating Sabah’s strengthening export sector,” he said.

To tackle the gate and yard congestion, Phoong confirmed that DP World will implement a Vehicle Booking System (VBS) in July 2025. The system will regulate traffic flow and reduce queuing times by enabling structured appointment scheduling for hauliers.

The Minister also confirmed that discussions with the Sabah Ports Authority indicated the Sepanggar Port expansion is on track for completion by the third quarter of 2026. The upgraded port is expected to accommodate higher volumes and strengthen Sabah’s role as a regional logistics hub.

“I would like to thank DP World for their continued cooperation and commitment to improving port services in Sabah.

“The State Government will continue working closely with all parties including SABFFLA, PPLKKK, SSAA, and FMM Sabah to ensure these improvements deliver benefits to our local industries and contribute to the long-term development of Sabah’s economy,” he said.

Phoong also reaffirmed the Ministry’s support for industry players and expressed confidence that the developments underway at the port will help attract more investments and drive industrial growth in the state.