DP World inked a partnership agreement with Malaysia’s Suria Capital Holdings subsidiary Sabah Ports to jointly manage Sapangar Bay Container Port (SBCP), according to a press release. The move comes in a bid to establish SBCP as a regional trade hub for the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).

The details: The agreement will see DP World support efforts to boost SBCP’s container handling capacity from 500k TEUs to 1.25 mn TEUs by 2025. The pair will also invest in improvement to SBCP’s cold chain storage and transport capabilities to increase the export of Sabah’s agricultural products to international markets opening growth pathways, the statement notes. Investments will also be drawn in to improve operational efficiency and boost port connectivity via optimized terminal workflows and digitalization.

Background: The latest partnership builds upon a long-term collaboration agreement inked by DP World and Sabah Ports in 2019, where both parties agreed to co-develop solutions to boost SBCP’s competitiveness and create cargoes in Sabah’s hinterlands, the statement added. Long term, the partnership looks to boost land and sea connectivity in Sabah, curb transit times and costs, and improve standards across Sabah’s supply chains.

Prime location: Sabah is located within a five day sailing radius of markets containing 2.2 bn potential customers accounting for over 40% of global manufacturing output, the statement notes. The area is also a source for timber, oil, and contains fisheries which were the second largest contributor to Sabah’s GDP last year.

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