Kota Kinabalu:Sabah Customs has ended the arrangement that allowed cargo and containers headed for Labuan to transit through Kota Kinabalu Port before being delivered by road and ferry to the island.

According to BERNAMA News Agency, the decision followed a meeting between the Labuan Chamber of Commerce (LCC), the Chartered Institute of Logistics and Transport Malaysia (CILTM) Sabah, and acting Sabah Customs director Daisun Saibeh @ Edward.

LCC president Daniel Doughty expressed support for the decision, emphasizing that it would protect the viability of direct shipping services to Labuan. He noted that the transit arrangement, initially introduced during the COVID-19 pandemic due to health restrictions, was necessary at the time but could now pose a threat to the cargo volumes at Labuan Port.

Doughty highlighted the importance of maintaining sufficient cargo volumes to ensure reliable and competitive direct shipping services, which are vital for Labuan's economy, businesses, and consumers. He praised Sabah Customs for their decisive action and their engagement with industry stakeholders.

Sabah Customs has reiterated that the transit arrangement is no longer allowed and has urged compliance from all parties involved, including shipowners, transport operators, and shipping agents. Doughty stressed the need for clear guidance and coordination to prevent disruptions and to bolster the reliability of direct shipping services to Labuan.