Works Ministry urged to resolve Tawau Port crisis
Tan
KOTA KINABALU (May 9): The Sabah Timber Industries Association (STIA) has called on the Sabah Works Ministry to urgently address the longstanding issues plaguing Tawau Port, warning that inefficiencies are crippling businesses and disrupting supply chains.
STIA president Tan Peng Juan cited a May 1, 2025 report highlighting the port's inferior facilities, which have caused severe logistical delays.
'These setbacks are hurting industries dependent on timely cargo processing,' he said in a statement today.
Tan revealed that many export-bound containers remain stranded due to malfunctioning equipment. The port's only two cranes broke down weeks ago, and despite promises of repairs, the situation persists. This has led to shipment delays, demurrage fees, and rising container rental costs for exporters.
Compounding the crisis, a vessel scheduled for May 11, 2025, has been canceled — a move that will worsen backlogs and strain businesses further.
'The cancellation disrupts supply chains, inflates costs, and hampers operations,' Tan stressed.
He noted that the port's inefficiencies have already driven away shipping lines, with weekly feeder vessels reduced from one or two to just one every fortnight. 'Without urgent improvements, fewer vessels will call at Tawau, harming Sabah's economy,' he warned.
The logjam has also spiked logistics costs, which could trigger higher consumer prices.
STIA members currently have 80 containers stuck since April 18 and another 96 awaiting shipment. Diverting shipments to Kota Kinabalu Port would cost an extra RM2,000 per container — a burden businesses cannot afford amid rising production costs and weak global demand.
STIA urged the government and Sabah Ports Sdn Bhd to act swiftly, demanding both immediate solutions and long-term upgrades to port infrastructure.
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