By Datuk 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: Recent developments at Sapangar Port indicate that the authorities are beginning to address congestion through a more coordinated and realistic approach.
This was evident during the minister’s visit to Sabah Ports Sdn Bhd Headquarters on 13 January 2026, when discussions were held not only with port operators but also with relevant agencies across the logistics and regulatory chain.
During the visit, the minister received briefings from Sabah Ports Sdn Bhd and DP World Sabah Sdn Bhd, the operators responsible for Sabah’s ports, including Sapangar.
The Sabah Economic Development and Investment Authority (SEDIA) also provided updates on the progress of the ongoing Sapangar expansion, and Suria Capital Holdings Berhad on longer-term plans for further port development.
Importantly, official data presented during the meeting showed a significant increase in import and export cargo volumes, a positive sign for Sabah’s economic activity—but also a clear explanation for the intensification of congestion pressures.
What emerged from these discussions was a more complete diagnosis of the problem. Complaints about congestion and inefficiency were examined across the entire service chain, not just within the port gates. Issues outside the port—such as coordination among agencies, truck movements, depot readiness, and the need for digitalisation—were recognised as equally critical contributors.
This reinforces earlier observations that the berth itself is often not the main bottleneck; congestion is largely created on land, through limited yard space, truck bunching, long container dwell times, and slow, fragmented clearance processes.
Against this backdrop, the action plan agreed between the minister and the port operator can be read as an attempt to “buy time” for Sabah’s economy while the delayed expansion is completed, and to impose stronger discipline across all players in the logistics chain.
The minister has indicated that several follow-up meetings will be held before a Cabinet paper is tabled to seek approval for interim solutions while awaiting completion of the long-term fix—the port expansion.
One of the most immediate steps under discussion is the creation of an ancillary container yard on adjacent land.
This directly addresses the space crunch caused by delays in the main expansion. A temporary yard spreads containers, reduces pressure on the main yard, and gives the operator greater flexibility to handle peak arrivals. It is a practical interim measure—not a substitute for the full expansion, but a necessary safeguard to prevent the existing terminal from seizing up.
The fact that government support is primarily needed for customs and regulatory approvals underscores the importance of regulatory cooperation alongside physical infrastructure.
Another key proposal—shortening free storage periods and raising storage tariffs—targets high container dwell times, a long-recognised major driver of congestion.
Long free storage effectively turns the port into a low-cost warehouse. Tightening these terms sends a clear signal that containers must move quickly.
However, this approach will only be considered fair if matched with enabling measures, such as extended operating hours, smoother gate flows, and responsive customs services.
Otherwise, port users will feel penalised for delays beyond their control. Past resistance from hauliers and businesses to operating beyond normal office hours shows how sensitive this lever is. Without proper coordination and incentives, pricing tools can inflame tensions rather than solve problems.
Requiring the Vehicle Booking System (VBS) directly addresses the chronic problem of truck queues extending far beyond the port gates. Unregulated, first-come, first-served arrivals overwhelm gates and yards, spilling congestion onto public roads.
A well-designed and enforced VBS can smooth traffic, spread movements across the day and night, and provide hauliers and the port with predictability.
Making it compulsory is a firm but necessary step. Its success, however, will depend on the system being reliable, user-friendly, and clearly linked to faster processing. Collaboration is key: the port must reward compliance with efficiency, and hauliers must respect their assigned time windows.
Equally important is the push to establish an Electronic Data Interchange (EDI) platform to digitise permits and approvals.
Complaints about slow paperwork and fragmented systems have long been part of the congestion story. A shared digital platform linking port users, operators, and authorities can speed approvals, reduce errors, and improve transparency.
This reinforces the point that congestion is not only about cranes and yard space but also about how efficiently information flows. For EDI to succeed, however, strong political will is required. Agencies must fully adopt the system rather than maintain parallel manual processes.
The discussion of equipment availability and the concession extension reflects another hard truth. Efficient port operations require continuous investment in cranes, yard machinery, and maintenance.
Any operator taking over port operations would have recognised the scale of this responsibility. Shortages of wharf and yard equipment are widely recognised as critical constraints.
As an established international operator, the operator should have anticipated these needs. If the operator demonstrates sincerity by rapidly investing in the required equipment, the state government would have little difficulty supporting a concession extension. Sabahans are not unreasonable: prove commitment through action, and support will follow. That is the political reality.
At the same time, public concern about the delayed expansion project remains unresolved. Observations at the project site indicate limited visible progress, raising legitimate questions about whether deeper issues—such as changes in contractors—are contributing to further delays. If so, such changes would inevitably slow delivery.
These matters cannot be left to speculation. Both port performance and the status of the expansion are matters of public interest, and clear communication is a responsibility owed to taxpayers and businesses alike.
Taken together, the minister’s engagement on 13 January and the emerging recommendations reflect a more mature understanding of Sapangar’s congestion.
They acknowledge that the crisis stems from delayed expansion, constrained yard capacity, poor traffic regulation, long dwell times, and slow, manual procedures—issues highlighted in earlier analyses.
They also make clear that solutions cannot rest solely with the port operator. Customs approvals, mandatory booking systems, digital integration, tariff policies, and concession decisions place the Cabinet, ministries, and agencies firmly in the picture.
Perhaps most tellingly, the minister stressed that all parties must place “Sabah State interest” above narrow considerations and that the problem can be solved only through a genuine “Sabah First” team—one that seeks to be part of the solution rather than part of the blame.
This is more than rhetoric. It captures the deeper message of the moment: Sapangar’s performance is a shared responsibility. If government, operators, agencies, hauliers, depots, and cargo owners move together, the port can shift from a bottleneck to a growth engine for Sabah.
If each resists change and protects its own convenience, even the best-designed plans will fail.
The real test, therefore, lies ahead—not in meetings or press statements, but in disciplined execution, transparent reporting, and sustained on-the-ground cooperation.
