ASEAN Ports Association Malaysia (MAPA)

Plans are underway to increase the capacity of the newly-completed Sepanggar Container Port Terminal (SPTC) in order to meet growing demand.

According to Infrastructure Development Minister Datuk Seri Joseph Pairin Kitingan, ever since the container port was open for business, it has been recording an upward trend in performance.

Speaking after attending a briefing cum work visit to SPTC, Thursday, he said Sabah Port Sdn Bhd (SPSB) has been mulling over the expansion plan.

This is to further improve the port’s capacity to enable it to handle more containers coming into Sabah.

“The port has been recording a commendable increase in terms of operational performance and an expansion plan is necessary and something to look forward to,” he said.

This despite the port with a capacity of 500,000 TEUs (twenty foot equivalent units) handling only about 200,000 TEUs last year as said by its Chief Operating Officer Mohd Sahid Nawab Khan.

Pairin said the privatisation of ports in Sabah has resulted in their management becoming more efficient as reflected by the steady increase of operational performance.

He said that positive performance displayed by the container port showed that it was heading in the right direction.

Explaining the expansion plan, he said it would be carried out based on projected future needs. “The plan would include increasing the size of the container yard and docking areas.”

Costing RM400 million over 22ha in Sepanggar opposite the Naval Base, the port commenced operations on June 9, 2007.

1^st March 2007 marked the day when Sabah Ports proved herself worthy of an AA3 (for long-term) and P1 (for short-term) rating by Rating Agency of Malaysia (RAM) to raise an Islamic bond fund of RM150 million that was jointly arranged by MIDF Amanah Investment Bank Berhad, Bank Muamalat Malaysia Berhad and Sabah Development Bank Berhad.

The signing ceremony was held at the Ballroom of the Magellan Sutera Hotel in Kota Kinabalu attended by the Minister of Infrastructure Development, YB. Datuk Raymond Tan Shu Kiah on behalf of the Chief Minister YAB Datuk Seri Musa Aman and a crowd of about 200 guests from the government and various sectors of the business community.

The Minister of Infrastructure Development, YB. Raymond Tan Shu Kiah delivered a very encouraging speech on behalf of the Hon. Chief Minister. It highlighted that the privatization of Sabah Ports Authority’s operation by Suria Capital Holdings Bhd hastened overall development of Sabah’s ports infrastructure and has resulted in better port efficiency and financial performance which is the prime objective of the decision to provide the ports in the first place.

The Honourable Chief Minister also commended that “These are all signs that Sabah Ports is heading in the right direction. Nonetheless, I urge the management team of Suria Capital Holdings Berhad and Sabah Ports Sdn Bhd, under the capable leadership of Datuk Haji Abu Bakar Abas as the Group Managing Director, not to the rest on the laurel but to continuously strive to bring the Company to much greater heights.

In conclusion, YAB. Datuk Seri Musa Aman congratulated Sabah Ports Sdn Bhd and her parent company Suria Capital Holdings Berhad on the occasion of the signing of RM150 million Islamic Securities comprising RM80 million Bai’ Bithaman Ajil Islamic Debts Securities up to RM70 million Murabahah Underwritten Notes Issuance Facility/Islamic Medium Term Notes Facility.