DP World could wrap talks over 30-year lease at Malaysia’s Sapangar Bay Container Port soon

Will Malaysia’s Sapangar Bay Container Port be leased out to DP World? Malaysian port operator Suria Capital Holdings is looking to lease out its Sapangar Bay Container Port in Sabah to DP World for 30 years, with talks nearing conclusion, sources told Malaysian outlet the Edge. There are so far no indications on the financials of the proposed transaction, the outlet said. DP World representatives declined to comment when approached by Enterprise Logistics for details.

This has been in the works for a while: A disclosure by Suria Capital on Malaysian exchange Bursa Malaysia at the start of the year had revealed that the company had received approval from Sabah State Government for its wholly owned subsidiary, Sabah Ports, to engage in a “strategic collaboration” with DP World, particularly in the management of the Sapangar Bay Container Port and logistics and supply chain infrastructure in Sabah.

Could an acquisition also be on the cards? There were also indications earlier this year that DP World would acquire a stake in Sabah Ports, sources told the outlet.

Sapangar Bay Container is currently undergoing an expansion: Sapangar Bay Container Port is currently undergoing a MYR 1 bn revamp slated for completion in 2025. The expansion is set to roll out improvements to port infrastructure that would see its present 500k TEU capacity more than doubled to 1.25 mn TEUs, the outlet said. Suria Cap is also looking to extend its concession agreement at the port for a further 30 years from 2034 to 2064 and is promoting Sapangar Bay Container as a regional hub for transshipments.

About Sabah Ports:Sabah Ports, a fully owned subsidiary of Suria Capital Holdings, controls Sabah state’s major oil and port terminals, the outlet said. It is the state’s main port operator, according to its website.