KOTA KINABALU, July 20, 2026 – The Sabah government has launched a 10-point interim action plan to address congestion at the Sepanggar Bay Container Port (SBCP), including the establishment of a dedicated task force to coordinate and monitor implementation.

Deputy Chief Minister III and Sabah Minister of Industrial Development, Entrepreneurship and Transport, Datuk Ewon Benedick, said the state government is treating the issue with urgency as congestion at SBCP has disrupted supply chains, increased operating costs and contributed to higher prices of goods in Sabah.

The task force, chaired by Ewon, has been established to ensure the coordinated execution of the 10 interim measures approved by the State Cabinet, while providing continuous oversight in collaboration with relevant government agencies and industry stakeholders.

Ewon announced the initiative while responding to questions from Datuk Wong Hong Jun (Tanjung Aru) and Datuk Donald Peter Mojuntin (Moyog) during the Sabah State Legislative Assembly sitting on Monday.

The 10 interim measures include expanding container yard capacity, implementing a revised tariff structure, enforcing regulations on overstayed containers, shortening free container storage periods during peak seasons, providing a trailer parking facility at Kota Kinabalu Industrial Park (KKIP), introducing a Vehicle Booking System (VBS), implementing 24-hour operations by government agencies at SBCP, upgrading port equipment, relocating Roll-on/Roll-off (RoRo) operations to Kota Kinabalu Port, and implementing a Berthing Window Programme (BWP).

“The ministry remains committed to closely monitoring the effectiveness of these interim measures and delivering practical solutions to ease congestion at SBCP,” Ewon said.

“We hope smoother logistics flows will reduce overall handling costs and help prevent increases in the prices of goods that would burden the people of Sabah.”

DP World Sabah Performance

On the performance of DP World Sabah, Ewon said the strategic partnership between Sabah Ports Sdn Bhd (SPSB) and DP World Sabah was established to improve port efficiency and position SBCP as a key transshipment and trade hub within the BIMP-EAGA and wider ASEAN region.

However, he noted that the port expansion project, originally scheduled for completion in February 2025, has been delayed after receiving five Extensions of Time (EOTs).

As DP World Sabah assumed management of the port in September 2024 while expansion works were still ongoing, Ewon said it would be premature to conduct a formal performance audit to assess whether the company has achieved its long-term transshipment hub objectives.

The Sabah Ports Authority (LPPS), as the port regulator, continues to monitor the performance of all port concessionaires, including DP World Sabah, using key indicators such as Average Berth Waiting Time (ABWT), container dwell time and yard utilisation.

According to Ewon, DP World Sabah has significantly improved vessel turnaround performance since taking over operations.

Average berth waiting time was reduced from 66 hours between December 2023 and September 2024 to just 20.24 hours during the period from October 2024 to July 2025, driven by improved operational productivity, enhanced berth planning and the simultaneous deployment of four quay cranes for the first time.

However, waiting times have recently increased again due to container yard utilisation reaching as high as 101%, reflecting rising container volumes, a temporary reduction of about 10% in storage space to facilitate expansion works, and operational disruptions caused by terminal gate upgrades.

Since assuming operations, DP World Sabah has expanded container yard capacity by 41%, increasing storage from 6,800 TEUs to 9,574 TEUs through yard reconfiguration and higher container stacking.

Despite these improvements, Ewon said Sabah’s growing economy and expanding trade volumes have outpaced available capacity, with average yard utilisation exceeding 70% and reaching full capacity during peak periods.

To further ease congestion, the ministry is implementing additional measures, including converting the RoRo area into temporary empty container storage, completing four acres of new container yard expected by December 2026, and acquiring an adjacent 14-acre site to serve as temporary container storage.

Container Dwell Time

Ewon also revealed that average container dwell time has increased from 4.0 days before DP World Sabah’s takeover to 5.1 days as of June 2026.

He attributed the increase to higher container throughput, full utilisation of the container yard, congestion at terminal gates, and delays in container clearance involving importers, shipping agents and relevant authorities—factors largely beyond the port operator’s control.

DP World Sabah is implementing a series of operational improvements, including optimising port planning, strengthening coordination with customers and government agencies, and enhancing container handling efficiency to gradually reduce container dwell time.

Overall, Ewon said DP World Sabah has delivered a commendable operational performance despite severe capacity constraints at the container yard.

“The current challenges are not due to inefficiencies in port management but are primarily the result of critical capacity limitations,” he said.

“The Sabah government recognises that SBCP is experiencing temporary congestion driven by surging container volumes and ongoing infrastructure expansion. Comprehensive mitigation measures, including the 10-point interim action plan, are being actively implemented to safeguard Sabah’s logistics network and economic growth.”