SANDAKAN: Tanjong Papat Assemblyman Alex Thien has warned that Sabah’s chronic port congestion is no longer just a logistics industry problem but has escalated into a direct financial burden on businesses and consumers through rising freight charges.
Thien revealed that a shipping company has recently imposed a General Rate Increase (GRI) of RM300 per 20-foot equivalent unit (TEU) – or RM600 for a 40-foot container – on cargo moving to and from Sabah’s ports, citing persistent congestion and disrupted vessel schedules.
“When freight charges begin to rise, it means that port congestion is no longer confined within the ports themselves. The impact is spreading across the entire supply chain, and the additional costs will ultimately be borne by consumers,” Thien said.
He stressed that the State Government should not merely amend the definition of “Minister” in the Sabah Ports Authority (Amendment) Bill 2026 but should instead seize the opportunity for a comprehensive review of port management systems and operational efficiency.
Thien proposed that the government regularly publish key performance indicators for all ports, including vessel waiting time, turnaround time, container dwell time, crane productivity and equipment breakdown rates, to enable public monitoring of actual performance rather than relying solely on policy announcements.
He also recommended tabling an Annual Sabah Ports Performance Report in the State Legislative Assembly, alongside establishing a Port Users Consultative Council comprising freight forwarders, shipping companies, haulage operators and industry representatives to provide a formal platform for raising operational issues.
Thien further proposed a fee waiver mechanism where delays caused by port operators, equipment failures or system breakdowns would exempt users from storage charges, penalties or congestion surcharges.
Regarding Sandakan Port specifically, he called on the government to disclose the service life and breakdown rates of ageing cranes and equipment, and to explain when new machinery will arrive, warning that outdated infrastructure undermines efficiency and prolongs maintenance periods at this key east coast trade gateway. – James Leong
‘When freight charges begin to rise, it means that port congestion is no longer confined within the ports themselves. The impact is spreading across the entire supply chain, and the additional costs will ultimately be borne by consumers’ – Thien
