Sabah Ports says not to blame: Shipping line decided to skip Tawau

LocalBusiness & Finance
24 May 2025 • 9:16 AM MYT
Daily Express
Daily Express

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By: Sabah Publishing House Sdn Bhd

Kota Kinabalu: Sabah Ports Sdn Bhd (SPSB) said it has taken proactive steps to mitigate delays and facilitate scheduled shipments.

Responding to the Sabah Timber Industries Association (STIA) regarding alleged operational challenges and shipment backlogs at Tawau Port, SPSB said the port operator committed to prioritising the berthing and loading of 200 containers from STIA, scheduled for departure on May 24.

As part of a mutually agreed contingency, SPSB had proposed the use of shipboard cranes should port cranes remain non-operational.

window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});“SPSB fulfilled its part of this agreement and ensured that the port remained fully operational and ready to facilitate the urgent shipment,” said SPSB, in a statement, Friday.

“Unfortunately, the shipment did not proceed due to the shipping line’s decision to omit Tawau from its schedule — a factor beyond our control.”

SPSB disagreed with suggestions that temporary equipment issues at the port were to blame for the backlog, pointing instead to the importance of diversifying shipping partners to reduce reliance on a single line and mitigate risks of service disruption.

“We further encourage STIA members to engage with a broader range of shipping lines to avoid over-reliance on a single provider which increases vulnerability to service disruptions,” said SPSB.

The port operator reaffirmed that it is managing the situation with “full resolve,” deploying both internal and external expertise while maintaining continuous communication with stakeholders.

SPSB highlighted that its team in Tawau had remained in regular contact with shipping agents and customers, offering real-time updates on equipment status and operational plans.

“Any suggestion that SPSB has failed to engage or update stakeholders is regrettable,” the company said, emphasising that early stakeholder dialogue and transparent updates had been key features of its response strategy.

The May 14 stakeholder meeting, convened by SPSB in Tawau, was attended by representatives from STIA, the Tawau Chinese Chamber of Commerce, the Sabah Shipping Agents Association, the Tawau Forwarding & Lorry Association, Sabah Ports Authority and SPSB senior officials.

Discussions during the session focused on immediate solutions and long-term plans, including the procurement of two new ship-to-shore gantry cranes expected to arrive later this year.

“This session served as a platform to address stakeholder concerns, explore practical interim measures and provide assurance that SPSB is actively taking all necessary steps to resolve the situation and prevent future recurrences.”

SPSB said one of the port’s cranes has been fully restored and returned to service with all safety systems operational as of 2pm on May 22. Work on the second crane is ongoing, involving three teams comprising SPSB engineers, independent specialists and technical experts from the original equipment manufacturer.

“These repair efforts require intensive involvement and are guided by professional assessments with safety, technical soundness and operational sustainability as top priorities.”

SPSB, a self-funded port operator, also disclosed a RM70 million investment to procure two new quay cranes, part of its broader commitment to enhancing Tawau Port’s capacity and reliability.

“We hope this affirms to STIA and its members our long-term commitment to better serve the Tawau business community,” said SPSB, adding that it remains open to further engagement with STIA and all stakeholders.

In the meantime, SPSB’s priority remains the full restoration of the second crane while ensuring the uninterrupted operation of the port using the functional crane until the new equipment arrives.