SEPANGGAR (Sabah) - Speculations are rife here that experienced ports handlers from the peninsula with ‘direct connections’ to Putrajaya are aiming to take over operations of Sabah’s main west-coast port – Sepanggar Port, the last jewel in the state’s crown.
Industry sources told FMT that the federal government is looking at the possibility of getting big handlers from Klang Port to expand to Sabah ostensibly for their experience, expertise and efficiency which will help raise the profile of Sepanggar Port internationally.
The planned move is said to be related to the realisation in the peninsula that the cabotage policy is unsustainable after becoming a major sticking point in federal-state relations.
“When the federal government does this, it ensures there already is strategic business alliances developed as ports’ business is a big business and the big players would always want that their interests protected once Sabah ports develop.
“With the cabotage policy liberalised, this will mean Sabah ports like Sepanggar would become the next big hub for container ships and those with interests will not ignore such an opportunity,” said one source.
The cabotage policy stipulates that foreign container ships need to call at Klang Port first ensuring that all goods bound for Sabah and Sarawak are off-loaded there and reloaded on to Malaysian vessels thus incurring an increase in handling charges and contributing to a hefty increase in the prices of goods in the two states.
According to industry sources, negotiations could well be under way between all the stakeholders to find a way to ensure the interested parties do not suffer losses when the cabotage policy ends.
“If things are on schedule, we shall see bigger allocations for Sabah ports especially Sepanggar Port in the subsequent federal budgets starting from next year,” the source said.
The source added that it is “normal” for big players in peninsular with links to the federal leadership to be given opportunities and priorities in any federal project.
Both sides are expected to announce their intentions to establish strategic port alliances to coincide with the announcement to abolish or further liberalise the unpopular cabotage policy.
When this is announced it will see Sabah lose ‘control’ over yet another utility system. Already oil, air, road and electricity are with the federal government .
Sepanggar Port became the main container port in the last decade after most sea traffic was directed away from the Kota Kinabalu Port, formerly known as Jesselton Harbour, which has now become the main anchorage for cruise ships and similar vessels.
The relocation of container ships to Sepanggar in 2007 paved the way for the development of the old port area into a shopping and tourist-related business district.
The Sepanggar Port project, on the other hand, opened up the area to the development of a container terminal, a naval base, an oil terminal, an industrial park and allowed institutes of higher learning such as Universiti Teknologi MARA (UiTM) and the Kota Kinabalu Polytechnic among others to build campuses there.
By Luke Rintod
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