Sarawak’s ports continue to drive economic growth

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Kuching Port Authority

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DEPUTY Premier Datuk Amar Douglas Uggah Embass updated the august House on the development and performance of Sarawak’s ports, highlighting significant growth in cargo throughput, efficiency, and infrastructure projects across key port authorities.

“From January to September 2024, Kuching Port Authority (KPA) recorded a profit of RM14.47 million, a remarkable increase from RM9.22 million during the same period in 2023.

“This growth aligns with a 10.5 per cent increase in cargo throughput, which rose to 7.46 million tonnes from 6.75 million tonnes in the corresponding period last year. The growth was driven by higher volumes of containerised, dry bulk, and roll-on-roll-off (RORO) cargo,” he said.

The Minister for Infrastructure and Port Development said the deployment of two new electric-powered quay cranes in March 2024 at Senari Terminal doubled vessel productivity, increasing it from 26 to 50 gross moves per hour.

Construction of the Vehicle Yard and Associated Facilities at Senari Terminal is progressing ahead of schedule, with 84.15 per cent physical completion as of October 2024. The project, expected to be operational by the first quarter of 2025, will enhance capacity for RORO cargo and accommodate up to 3,000 vehicles.

By December 2024, an additional annual container yard capacity of 100,000 TEUs will be completed. Furthermore, efforts are underway to secure federal funding for the free zone development at Demak Laut Industrial Estate, which spans 800 acres and is expected to attract investment and boost cargo throughput.

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“The Rajang Port demonstrated resilience, recording a 4.8 per cent increase in cargo throughput to 1.09 million tonnes as of September 2024, up from 1.04 million tonnes in 2023. Container volumes also grew by 1.8 per cent, reaching 63,702 TEUs compared to 62,594 TEUs during the previous year.

“However, higher operating expenditures led to a decline in profit, with RM4.04 million recorded compared to RM5.71 million during the same period last year,” he shared during his ministerial winding up speech.

Miri Port Authority (MPA) posted a significant profit increase, more than doubling its earnings to RM5.34 million as of September 2024, compared to RM2.45 million in 2023. Cargo throughput also grew by 5.1 per cent, reaching 2.48 million tonnes, driven by exports of petroleum, logs, heavy machinery, and building materials.

The capital dredging of the Batang Baram Delta commenced in July 2024, with a contract worth RM208.9 million. The project, scheduled for completion in March 2027, will improve navigation safety, reduce operational costs, and enable Miri Port to handle larger vessels of up to 10,000 DWT, supporting an annual throughput capacity of 3.5 million tonnes.

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Meanwhile Tanjung Manis Port recorded a 14.8 per cent increase in cargo throughput to 1.32 million tonnes as of September 2024, compared to 1.15 million tonnes in 2023. The growth was attributed to a rise in bulk cargo, particularly cement.

“Despite operational improvements, the port continued to operate at a loss, reducing its deficit from RM5.47 million in 2023 to RM4.29 million in 2024,” he said.

He added that Samalaju Port reported a 15.2 per cent increase in cargo volume, rising from 4.35 million tonnes in 2023 to 5.01 million tonnes as of September 2024. The growth was driven by higher imports, especially manganese ore.

However, Samalaju Port Authority (LPS) saw a profit decline from RM3.41 million in 2023 to RM0.86 million in 2024, due to payments for land lease and survey fees totalling RM3.43 million in April 2024.

The port has become a preferred alternative for specialised exports such as billets, aluminium ingots, and wire rods, providing more efficient and cost-effective solutions for investors.

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