By Ts Dr. Hj Ramli Amir, former President of the Chartered Institute of Logistics and Transport (CILT) Malaysia and Vice-President of CILT International for Southeast Asia
KOTA KINABALU: The proposed ferry service between Kudat, Sabah, and Palawan, Philippines, heralds a new era of regional connectivity and economic growth. In May 2024, a comprehensive proposal was presented to the Sabah State Government, outlining an ambitious plan for a passenger ferry service linking these two strategic locations. The proposal recommends Brooke’s Point in southeastern Palawan as the designated port of call, with Kudat serving as the Malaysian terminus. This initiative represents a significant step towards enhancing cross-border cooperation and economic integration within the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA)
Government Support and Infrastructure Development
The Transport Ministry has thrown its weight behind this initiative, expressing eagerness to issue an international ferry permit for the Kudat-Palawan route. This support underscores the government’s commitment to boosting tourism in the Kudat district and fostering stronger economic and cultural ties between the two regions. To facilitate this international connection, Kudat port is set to undergo a significant upgrade, including the installation of customs, immigration, quarantine, and security (CIQS) checkpoints. These enhancements will ensure smooth and secure travel operations, positioning Kudat as a key gateway for international maritime traffic.
Operational Plans and Logistics
As of July 2024, preparations were in full swing for the launch of a 150-seater ferry, with ambitious plans to operate three trips per week. Latest information known is that the landing point in Palawan would be at Buliluyan Port. The journey between Kudat port and Buliluyan port is expected to take approximately four hours, striking a balance between convenience and efficiency for both travellers and traders. This frequency and capacity demonstrate the project’s potential to significantly impact regional travel patterns and trade dynamics.
Boosting Local Tourism and Cultural Exchange
The anticipated impact on local tourism is substantial and multifaceted. The ferry service is poised to bring an influx of visitors from Palawan to Kudat, potentially leading to increased overnight stays and a boost in cultural tourism. Visitors are likely to be drawn to the rich Rungus culture, local artworks, and pristine beaches of Kudat. This increased footfall is expected to create new market opportunities, with local establishments such as Tamu Kudat potentially seeing a surge in activity as visitors purchase local produce, handicrafts, and traditional snacks.
The cultural exchange facilitated by this ferry service is expected to be profound and far-reaching. More frequent interactions between the Rungus people of Kudat and the indigenous communities of Palawan could lead to a rich exchange of languages, customs, and traditional practices. Local artisans may find new platforms to showcase and trade their traditional crafts and artwork, potentially leading to a renaissance in local cultural industries. Moreover, the culinary landscapes of both regions could be enriched through the exchange of local cuisines and food products, fostering a unique blend of flavours and culinary traditions.
Revitalising Trade and Economic Growth
From a trade perspective, the ferry service is set to breathe new life into Kudat’s economy. The revival of barter trading activities and the establishment of new trade routes promise to inject vitality into the local business ecosystem. Kudat port could emerge as a strategic new berthing point for vessels sailing from southern Mindanao to Labuan, opening up fresh trade opportunities and positioning Kudat as a key player in regional maritime commerce.
The reintroduction of barter trade, a practice with deep historical roots in Sabah, is particularly noteworthy. This traditional form of exchange could play a significant role in diversifying Kudat’s economic activities and tapping into existing regional networks. Barter trade often facilitates smaller-scale transactions, providing opportunities for local small and medium enterprises (SMEs) to participate in international trade. It could also become a unique attraction for tourists, showcasing traditional trading practices and local products.
Local businesses, particularly in seafood trading and the food and beverage sector, are anticipated to benefit significantly from these increased trade activities. The combination of modern ferry services and revitalised barter trade could serve as a catalyst for economic diversification in Kudat, helping to transform what has been described as a sluggish and localised economy into a vibrant hub of international trade and commerce.
Moreover, barter trade could provide a platform for Kudat to showcase and exchange its local products, potentially including agricultural produce, handicrafts, and marine products. This could lead to greater utilisation of natural resources and foster cultural and economic exchanges between the Rungus people of Kudat and the indigenous communities of Palawan.
Challenges and Considerations
Despite the promising outlook, the implementation of this ferry service is not without its challenges. Maritime safety stands as a critical concern, with the transport minister emphasizing the need for ferries to meet stringent international safety standards. Regulatory compliance, particularly adherence to International Maritime Organisation (IMO) regulations and obtaining necessary certifications, may potentially delay implementation.
Security is another crucial aspect that requires careful consideration. The establishment of robust CIQS measures is essential to prevent illegal activities and ensure the integrity of cross-border movements. Additionally, the long-term economic viability of the service will hinge on consistent passenger demand and operational efficiency, necessitating careful market analysis and strategic planning. Environmental concerns also loom large, as increased maritime traffic poses potential risks to marine ecosystems in the area. This highlights the need for careful environmental management and the implementation of sustainable practices in all aspects of the ferry service’s operations.
A Promising Future
Despite these challenges, the proposed Kudat-Palawan ferry service, coupled with the revival of barter trade, represents a promising opportunity for regional development. It has the potential to revitalise Kudat’s economy, diversify its economic base, and create new opportunities for cultural exchange and tourism growth. The combination of modern maritime connectivity and traditional trading practices could create a unique economic model that balances progress with cultural preservation.
As the project moves from the proposal and planning stages towards implementation, it will require careful management, continued government support, and engagement with local communities to ensure its success and sustainability. Particular attention will need to be paid to regulating barter trade to ensure it benefits local Sabahans and complies with international trade regulations. The Kudat-Palawan ferry link and the associated revival of barter trade stand as a testament to the power of regional cooperation and the potential for maritime connectivity to drive economic growth. If successfully implemented, this project could serve as a model for similar initiatives across the BIMP-EAGA region, paving the way for a more integrated and prosperous Southeast Asia whilst preserving traditional economic practices.
Champion of Connectivity: Datuk Verdon Bahanda’s Pivotal Role
The realisation of the Kudat-Palawan ferry service owes much to the tireless efforts of Datuk Verdon Bahanda, the Member of Parliament for Kudat. Bahanda’s commitment to enhancing Kudat’s economic prospects through improved international connectivity has been evident throughout the project’s development.
He initially proposed the sea link between Kudat and Palawan in the Dewan Rakyat, sparking crucial discussions on its feasibility. Bahanda’s engagement with Transport Minister Anthony Loke led to a ministerial tour of Kudat, significantly boosting the project’s profile. In May 2024, he presented a comprehensive proposal to Chief Minister Datuk Seri Hajiji Noor, demonstrating his thorough approach to the initiative.
Bahanda’s work extended beyond national borders, as he participated in discussions in Makati City, Philippines, meeting with Palawan District II Congressman Jose Chaves Alvarez to discuss the project’s potential. His commitment to the cause was further exemplified by his assurance of a forthcoming feasibility study and his vision for expanding Kudat’s infrastructure, including plans to extend the local airport runway.
Despite setbacks in 2018 related to border security and regulatory compliance, Bahanda’s persistent advocacy has been instrumental in maintaining momentum for the project. His multifaceted approach, spanning local, state, federal, and international levels, has been crucial in advancing the Kudat-Palawan ferry service from concept to potential reality.
