Kota Kinabalu: Sabah Ports Authority Board Member Datuk Dr Johnson Tee said the State’s ports need to start using modern technology and go digital or risk becoming obsolete in the rapidly changing maritime industry.
“In logistics, if you do not go for digitalisation, it will be vaporisation. You will disappear in the atmosphere,” Johnson said, pointing out the need for ports to modernise.
He said this in his talk, “Smart Ports: Transforming maritime logistics in the Blue Economy” at the recent 3rd Asean Blue Economy Forum 2025, here.
“About 80-90 per cent of global business activities depend on sea transport, making ports important to the economy. However, outdated port management causes problems.
“If the port does not work properly, at the end of the day, we lose money. The cost will go to the rakyat,” he said, pointing to issues like congestion, excessive paperwork and inefficient operations that ultimately burden consumers.
He noted that during the Covid-19 Movement Control Order, Sabah Ports doubled their income because they had the right information systems in place to handle increased demand efficiently.
“A smart port relies on several key elements, namely, digitalisation, automation, connectivity and Artificial Intelligence.
“Digitalisation eliminates paperwork through computerised systems. I still remember my early days in 1982 when everything required manual forms, compared to today’s paperless operations in advanced ports like Shanghai and Rotterdam.
“Automation is equally important, whereby robots and automated systems are used to handle cargo more efficiently,” he said.
He said connectivity is also important and this involves installing 5G technology and sensors throughout the port to track cargo weight, temperature and location in real-time.
“When the cargo comes in, there is information. They know the weight. They know the size. It will be very easy when you want to retrieve the container,” he said.
Finally, the use of AI can predict ship arrival times without needing to call captains and banks can instantly verify ship locations before releasing funds.
He said Sabah’s geographical position is also a major strength as it is strategically located for regional maritime trade.
Additionally, he praised the Federal Government investment in infrastructure in Sepanggar Bay, where DP World is working on billion-dollar developments.
“The Palm Oil Industrial Cluster is a potential model for sustainable industry with smart logistics and renewable energy.
“If Rotterdam can do it, we can do it, if we have the people to think that,” he said.
He pointed out the importance of having a sense of environmental responsibility, declaring himself a Greenpeace supporter who insists on sustainable practices.
“Sustainability is essential, not optional. Smart ports show that efficiency and sustainability can work together.
“I think every port in Sabah should install solar panels on their large roof areas,” he said, citing sustainable efforts done in Rotterdam’s port which allows ships to plug into shore power instead of running diesel generators, reducing pollution.
At the same time, he acknowledged challenges facing smart port development, namely, high investment costs, cybersecurity and data sharing.
“Smart technology requires substantial capital, but we must be wary of over-borrowing,” he said, citing Sri Lanka’s Hambantota port, which is now 90 per cent owned by Chinese investors after the country could not repay loans.
“Port is our sovereignty,” he said, welcoming the Transport Minister’s recent statement that no Malaysian port will be allowed to have more than 49 per cent foreign ownership.
On cybersecurity, he said that one port he is familiar with was hacked and lost US$280,000 in just 23 hours.
“Your cyber security, your firewall, have to be up to date,” he said.
He also said that companies need to share information responsibly to achieve progress, though many remain reluctant due to trust issues.
Despite these challenges, Johnson is optimistic and urge stakeholders not to view difficulties as roadblocks.
“The real question is can we afford not to invest in smart port technology? If you do not move forward to have a smart port, you will be behind.
“Smart ports are no longer a choice, they are the future. While we like to make money, we have a responsibility towards the universe. Let us build ports that are not just gateways of commerce but also beacons of sustainability and resilience for the future to come,” he said.
