PETALING JAYA: Suria Capital Holdings Bhd
’s subsidiary, Sabah Ports Sdn Bhd (SPSB), is poised for growth, thanks to the expanding network of shipping lines calling at its various run ports in the state.
The port operator expects its recent collaborations with shipping lines would not only benefit both local and global businesses but also open up avenues for exports from Sabah.
Earlier this month, Suria Capital, which operates eight ports in Sabah, said Sandakan Port celebrated the maiden call of Maersk Valencia, a vessel from Danish shipping and logistics company Maersk, which the port operator said could significantly expand trade opportunities.
This new connection serves as a gateway to crucial markets including the United States, South America and the Middle East, all accessible via the strategic port of Shanghai.
The port operator said the collaboration also creates opportunities for exports to Europe, in addition to facilitating direct calls from Sandakan Port to key destinations such as Shanghai, Dalian, Incheon, Busan, Tokyo, Nagoya, Yokohama and Osaka.
“By widening the network of shipping lines at Sandakan ports, we are able to provide customers with more shipping solutions and choices for cargo transfers,” Suria Capital told StarBiz.
In July, Hong Kong-based SITC International Holdings Co Ltd launched its China-Vietnam-Malaysia container shipping service at Sapangar Bay Container Port (SBCP), a move aimed at strengthening the port’s position as a trade hub in the region and simultaneously enhance its regional competitiveness.
The move also allows SITC to maintain a presence in the region, particularly in Bintulu, Sarawak, due to export trade.
“Engaging SITC to include SBCP in its routes offers a significant advantage for our current customers and prospective investors in the manufacturing sector,” it said.
With the new service, SPSB is able to provide a better experience to customers by providing connectivity to foreign ports, thus meeting their core requirements of direct calls, service frequency and cost-effective logistics.
“The introduction of new services from shipping lines not only enhances capacity for import and export but also eliminates the need for importers and exporters to contend for limited space, equipment and freight.
“This expanded capacity streamlines trade operations, making it more efficient and cost-effective,” Suria Capital said.
It added that SITC is a strong intra-Asia liner and its presence at SBCP creates an attractive incentive, especially in terms of competitive freight prices.
“This can be an appealing factor, enticing foreign direct investments to the state,” it noted.
In early 2023, SPSB entered into a strategic collaboration with DP World, a global provider of a smart end-to-end supply chain, to manage and operate SBCP for 30 years.
With the expertise and global reach of DP World, SPSB anticipates a transformational impact on shipping efficiency and extensive connectivity.
“By leveraging on Dubai-based DP World’s expertise, SPSB will be able to establish a strategic link for shipping efficiency, generating extensive connectivity.
“This is particularly beneficial for cargoes en route to the larger Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area (Bimp-Eaga) as well as Far East, Europe and the Middle East,” it said.
With all these collaborations, Suria Capital firmly believed its ports are positioned at the forefront of growth opportunities, thanks to their strategically advantageous location for cross-border trade.
“With further logistics development such as the Pan Borneo Highway, our cargo base has the potential to grow as new markets are explored,” it added.
The company believed its ports possess adequate infrastructure and equipment to have a competitive edge among other Bimp-Eaga ports, especially in handling containerised goods, which may not be possible for some smaller ports in the region.
Citing a study, the port operator pointed out that there are over 1.8 million 20-ft equivalent units (TEUs) of foreign container cargo handled in Bimp-Eaga, with intra-Asia container cargo representing a significant amount of the total foreign cargo.
“We see an opportunity for SPSB to tap into this vast market. There is also an opportunity to consolidate common cargoes meant for export within the Bimp-Eaga region at our ports, thus taking advantage of economies of scale and reduced shipping costs while improving market access of traders.”
Suria Capital shares closed at a five-year high of RM1.53 yesterday.
