SPSB hands over management and operations of SBCP to DP

10 September 2024

KOTA KINABALU: Sabah Ports Sdn Bhd (SPSB) has officially transferred the management and operation of the Sepanggar Bay Container Port (SBCP) to DP World, a global leader in end-to-end smart supply chain logistics.

At the signing ceremony, Chief Minister Datuk Seri Hajiji Noor congratulated both parties on this significant milestone, highlighting the strategic partnership as a testament to Sabah's potential as a key player in both regional and global trade.

“DP World’s investment in SBCP clearly demonstrates their confidence in Sabah’s strategic location and its promising growth prospects for a bright future.

“This collaboration is expected to elevate SBCP into a leading regional trade hub within the BIMP-EAGA framework, further enhancing Sabah's influence and role in the global supply chain,” he stated.

Signing on behalf of SPSB were Chairman Datuk Faisyal Yusof Hamdan Diego and Managing Director Datuk Ng Kiat Min.

On behalf of DP World, the signatories included Senior Vice President for Southeast Asia and Director of SBCP Sdn Bhd Xavier Eiglier, along with Senior Director of Business Development for DP World Asia Pacific and Managing Director of SBCP Sdn Bhd Safuan Basir.

Hajiji stated that by enhancing the efficiency and connectivity of the port, this collaboration will open new markets for businesses in Sabah, particularly for small and medium enterprises.

He noted that it will empower local businesses to expand their reach and compete more effectively on a global scale, thereby driving economic prosperity.

“I look forward to advanced logistics integration and smart technology that will modernize port operations in Sabah, ensuring our ports remain competitive in the rapidly evolving global trade environment.

“I commend Sabah Ports Sdn Bhd for their vision and dedication in facilitating this historic collaboration and laying the groundwork for growth and opportunities for Sabah,” he said.

Meanwhile, this collaboration, executed through a joint venture, SBCP Sdn Bhd (which will be renamed DP World Sabah Sdn Bhd), marks a significant advancement in the maritime and logistics landscape of Sabah and represents DP World's first step into the Malaysian market.

Under this partnership, SPSB and DP World are committed to establishing SBCP as a leading regional trade hub, particularly for the East ASEAN Growth Area of Brunei-Indonesia-Malaysia-Philippines (BIMP-EAGA).

The strategic focus will include enhancing SBCP's connectivity, operational efficiency, and terminal capacity, leveraging DP World's global network and extensive expertise.

The collaboration aims to make SBCP a globally competitive port, stimulating trade and creating strong links between local businesses and international markets.

It is also expected to address longstanding challenges regarding high logistics costs in Sabah by creating a resilient and efficient supply chain network.

The partnership will commence in April 2024 when the Group Chairman and CEO of DP World, Sultan Ahmed Sulayem, signs a strategic agreement, including, among other things, a Share Subscription Agreement and Shareholders' Agreement for the joint venture, and a Cooperation Agreement between the JV and SPSB.

The handover of operations took place on September 9, 2024, marking the beginning of SBCP's transformation and its integration into DP World's extensive global port and logistics network.

DP World, headquartered in Dubai, operates in over 70 countries and is renowned for its role in establishing Dubai as a global trade hub through the development of Jebel Ali Port and the Jebel Ali Free Zone (JAFZA).