SAPANGAR BAY EXPANSION TO COMMENCE NEXT YEAR
Work involves berth length and container stacking area, says group managing director
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THE expansion programme at Sapangar Bay Container Port, which is operated by Suria Capital Holdings Bhd (SCH), will commence next year and is expected to be completed by 2023.
Group managing director Ng Kiat Min said in the first phase, the berth length would be expanded from 500m to 850m, while the container stacking area would be expanded from 13ha to 34ha.
She said the expansion plan was required to cater to bigger vessels and high volume of cargo handled at the port in the future.
Under the major development plan, its current handling capacity of 500,000 TEUs (twenty-foot equivalent units) would be enhanced more than twice, and eventually boost its container handling capacity to 1.25 million TEUs by 2026.
“The federal government has approved RM1.1 billion through the Sabah Economic Development Investment Authority to transform the port into a transshipment hub, which will become a game changer to spur the economy.
“This is a supply-driven initiative. We have to get infrastructure ready to entice downstream foreign investment and generate more cargos,” she said, adding that the upgraded port had potential to become a regional transshipment hub as it was strategically located in the centre of the east Asia region.
Ng was speaking after the g ro u p’s 34th a nnual general meeting, here, yesterday.
She also added that the Pan Borneo Highway project would bring long-term positive impact to port activities.
Other major infrastructure works include the construction of conventional cargo terminal at Sepangar Bay Port for the relocation of Kota Kinabalu port operation, Sapangar Oil Terminal Jetty extension, barge facility at Sandakan and Lahad Datu Ports, as well as the construction of new jetty at Lahad Datu Port.
Suria Group is also looking into new business prospects, including to build an international cruise terminal to complement its property developments such as Jesselton Quay and One Jesselton Waterfront.
“When there are more tourists, there will also be more spending, and eventually contribute to growth of the ports business.”
Meanwhile, the group’s main core port operations remain stable with revenue registered at RM217.8 million last year, which is almost on par with 2015, at RM217.2 million.
The group recorded a total revenue of RM258.51 million last year, compared with RM496.65 million the previous year.
Suria Capital group managing director Ng Kiat Min says the Sapangar Bay is being expanded to cater to bigger vessels and higher volume of cargo in the future.