By WU VUIDE
KOTA KINABALU: The Sabah Works Ministry has been urged to take immediate measures to address the Tawau port facilities problem faced by the timber industry players.
The Sabah Timber Industries Association (STIA) in making the call said many containers bound for export are stuck at the port.
These delays have significantly affected logistics efficiency causing setbacks for businesses reliant on timely cargo processing.
“Most significant unresolved incident is the breakdown of the only two cranes available to service loading.
“The industry was informed repairs were on the way weeks ago with parts arriving from Peninsular Malaysia.
“But the situation remains unchanged causing shipment or loading delays, payment of demurrage fees incurred and containers space rental borne by exporters,” said STIA President Tan Peng Juan.
He said STIA was also informed that on May 1, 2025 a vessel bound for Tawau port had been called off due to the current situation.
He added that the cancellation of this vessel further exacerbates the challenges faced by businesses relying on timely cargo processing, potentially resulting in increased costs, supply chain disruptions, and operational setbacks.
“The inefficient ports facilities have deterred vessels from calling Tawau Port and can be proven whereby feeder vessels has reduced in numbers from one to two vessels every week to one vessel only in two weeks.
“And the number of vessels calling will be getting lesser if there is no improvement in the management of Tawau Port,” he warned.
He said it is evident that port congestion leads to several significant problems that affect trade, logistics and the overall economy of the State of Sabah.
He added that due to increase in logistic costs and disruption in the supply chain, the prices of goods will rise automatically affecting the livelihood of the people in the state.
Currently members of the Association have a total of 80 containers waiting to be loaded since April 18, 2025 and another 96 containers pending shipments, and the option to truck down containers to Kota Kinabalu ports will incur an additional cost of RM2,000 per container, he said.
The industry is unable to absorb any additional increase in cost due to the pressures from market circumstances, high cost of production and reduced demand in view of the global economic scenario, he said.
“We wish to call upon relevant Ministries and Sabah Ports Sdn Bhd to take immediate steps to resolve the current port congestion issue and a long-term solution to ensure improvement in port facilities,” he said.
