KUALA LUMPUR: Sapangar Bay Container Port (SBCP), through the synergy between Dubai-based DP World Plc and Sabah Ports Sdn Bhd (SPSB), is poised to integrate into DP World’s global network, strategically enhancing its role within Southeast Asia’s archipelagoes and enabling it to leverage the region’s rapid export growth. The partnership between the two companies reached a new milestone this year with the transfer of the port’s management to DP World, executed under joint-venture company DP World Sabah Sdn Bhd.

According to BERNAMA News Agency, DP World Asia Pacific chief executive officer and managing director Glen Hilton stated that SBCP will gain enhanced connectivity to both regional and international ports, making it a more attractive destination for direct shipping line calls. “SBCP holds a strategic position as a transshipment hub for the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) region, with proximity to major industrial and consumer markets like China, Japan, Taiwan, So
uth Korea, and Australia,” Hilton said.

Hilton added that through the partnership, SBCP will have improved access to DP World’s ports and terminals network, which can help reduce costs, shorten transit times, and provide more reliable shipping options, contributing to greater operational efficiency and competitiveness. DP World’s network links SBCP with smaller regional ports within the BIMP-EAGA region and larger global hubs, granting cargo owners in Sabah access to global shipping routes where cargo can connect to transocean container ships.

The strategic partnership between DP World and SPSB was established in 2019 to explore SBCP’s potential as a regional hub. The aim was to improve both landside and seaside connectivity across Sabah, reduce transit costs and times, and enhance performance standards in the state’s supply chain. Hilton emphasized that the partnership aligns with SBCP’s expansion plan to increase its terminal handling capacity to 1.25 million twenty-foot equivalent units (TEUs) by 2026.

Hilton further noted that planned enhancements to SBCP’s cold chain storage and transport capabilities will support the export of fisheries and agricultural products, helping these industries access international markets more seamlessly. This growth aligns with ASEAN’s strength in fishery exports, with ASEAN member states accounting for nearly 22 percent of global fishery production in 2020.

Discussing the impact on Sabah’s economy, Hilton highlighted that the state currently faces high logistics costs due to limited direct shipping line calls and fewer economies of scale. Sabah also faces unique logistical challenges due to its terrain, large land area, and developing road infrastructure, which expanding port capacity and efficiency can help address.

Hilton explained that DP World’s connected supply chain solutions, leveraging innovative technologies, enhance cargo visibility, enable data-driven decision-making, and minimize disruptions in logistics. These technologies ensure goods move smoothly along crit
ical trade corridors. As part of this partnership, DP World will deploy its suite of proprietary technologies across Sabah’s container logistics supply chain, automating processes like container handling and tracking.

This synergy reflects a broader trend in ASEAN, as authorities of Indonesia’s Batam Island recently launched direct shipments from Batu Ampar Port to Guangzhou and Shenzhen in China to enhance bilateral trade. Meanwhile, a McKinsey and Company report noted that GDP growth in Southeast Asia accelerated in the second quarter of this year, with Malaysia’s export growth more than doubling from the first quarter, indicating robust trade momentum in the region.