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Ports in Sarawak as key drivers for trade, economic activities

Six major ports function as crucial transhipment hubs that play integral roles in the state’s supply chain by NURUL SUHAIDI

PORTS facilitate trade, transportation and economic growth. They are key connectors between land and sea, allowing for the efficient movement of goods, people and resources. 

As a crucial connection between sea and land movement, ports support economic activities and growth for the respective state, as well as the country. 

One of the factors that is expected to boost the economic growth of Sarawak is the Pan Borneo Highway (PBH), a significant infrastructure initiative that will transform transportation and accessibility in Sarawak. 

The 786.41km highway stretches from Teluk Melano down south up to Miri in the north and is expected to improve connectivity to the interiors of Sarawak. 

Transport analyst YS Chan said PBH Sarawak will be beneficial to strengthen and allow more shipments of raw material through the ports in Sarawak. 

“With larger areas in Sarawak made more accessible by the highway, there will be new developments such as agriculture and manufacturing, resulting in more shipments of raw materials and manufactured goods through Sarawak’s ports,” he told The Malaysian Reserve (TMR)

As for the peninsula, Chan said the port in Singapore is likely to benefit more from the PBH than the ports in Johor Baru, Kuantan and Port Klang. 

“Singapore’s role as an ‘entrepot’ is phenomenal, as it is super-efficient, and much of our exports especially down south are sent through Singapore,” he added. 

According to Kuching Port Authority (KPA), the first organised port in the state, the PBH will help expedite the movement of goods into and out of Kuching Port in respect to other parts of Sarawak. 

On the possibility of new ports in Sarawak, KPA said the state government is conducting a feasibility study on a new deep-sea port at Tanjung Embang, Kuching. 

In addition to that, Rajang Port Authority (RPA) GM Helen Lim Hui Shyan said Rajang Port will take measures to complement the new highway infrastructure, which is set to provide a vital link between the hinterland and the state’s inner core. The improved connectivity can lead to increased trade, investment and business activities. 

In Sarawak, six ports act as a major cargo-handling transhipment ports which are the integral parts of its supply chain. They are the Bintulu, Kuching, Miri, Samalaju, Rajang and Tanjung Manis Ports. 

Bintulu Port 

Lying on the western coastline of Sarawak, near the Bintulu city, this port is the major maritime gateway to Eastern Malaysia, comprising the regions of Sabah, Sarawak and Labuan. 

This deepwater seaport handles petroleum and its derivatives, as well as liquefied natural gas (LNG), crude oil, liquefied petroleum gas (LPG), urea, fertilisers, timber and palm oil. 

Over 7,000 ships visit the port annually, and it has a handling capacity of more than 69 million tonnes and more than 390 twenty-foot equivalent unit (TEU). 

Operated by Bintulu Port Sdn Bhd (BPSB), Bintulu Port’s location is crucial since it connects Borneo Island to other countries like Indonesia and the Philippines, where it is expected to become a major LNG trade hub. 

About 76% of the cargo handled at this port comprises liquid bulk. It has also witnessed appreciable growth in container traffic in recent years and handled around 348,000 TEUs in 2018. 

Due to its strategic position, it is expected to emerge as the region’s significant LNG trade centre. 

The container-handling facility and the oil wharf are now being expanded. Soon, new cargo compositions like those containing aluminium, pulp and paper, biodiesel, downstream forest products and agricultural products will pass through Bintulu Port. 

It is a multipurpose facility comprising three berths for handling conventional cargo, two berths for handling bulk and breakbulk, seven jetties for accommodating LNG tankers and an expansive container terminal. 

BPSB’s existing hinterland extends as far north as Limbang and Lawas in Sarawak and to Sabah and Brunei. 

In the other direction (south-east), BPSB’s coverage extends as far as Pontianak in Kalimantan, Indonesia, and Kuching. 

Kuching Port 

The KPA was established in 1961 under the Port Authorities Ordinance 1961. This port has grown to become the state’s premier port, serving numerous shipping lines connecting it to the regional hub ports. 

Kuching Port is equipped with two terminals, namely the Pending Terminal with an annual capacity of 2.9 million tonnes and the Senari Terminal with an annual capacity of seven million tonnes. 

Both have convenient access to highways and coastal routes, as well as to all major towns in Sarawak. They are also situated in close proximity to industrial estates which facilitates smooth cargo movement. 

Kuching Port’s main operations are handling containers, general cargo and roll-on/roll-off cargo (Ro-Ro) and vehicles. 

Among the top export commodities KPA deals with are steel, iron and metal products, groceries, food and beverages, dry bulk cargo, consumer products, vehicle parts, hardware and building materials, electricals and electronic apparatus, wood and timber products, as well as live animals. 

Serving as a trade gateway for the southern region of Sarawak, Kuching Port facilitates imports and exports. It complements other ports like Bintulu, Samalaju, Rajang, and Tanjung Manis Ports serving the central region, while Miri Port serves the northern region. 

Kuching Port implemented the Vessel Traffic Management System (VTMS) in 2023 and it plans to expand its port capacity to handle more cargo, for example, by adding a Ro-Ro yard, free zone, wharf, warehouses and container yard. KPA looks to install two new quay cranes next year. 

To keep up with digitalisation, KPA will also move towards computerising more of its operations, for example, online applications via mobile devices. 

Miri Port 

This port is located at the mouth of the Miri River. Known as a shallow general cargo port, it has offshore tanker facilities at Lutong and is the largest oil export port in Malaysia. 

The port deals with major commodities such as iron and steel, household goods, electrical appliances, machinery, heavy tractors, foodstuff, cereals, timber or sawn timber, petroleum, petroleum products and LNG. 

The port also has a timber terminal, as well as passenger and general cargo terminals on the Miri River. 

Its strategic location in Baram, coupled with its facilities and vast land areas for expansion, are set to boost international trade by facilitating industrial and commercial activities. 

The port authority is planning a dredging programme to increase the port’s potential. However, it is currently dealing with the challenges of shallow channel access to Kuala Baram, which the government and its authorities are currently still addressing. 

Despite that, the Miri Port Authority (MPA) is determined to be an economic catalyst for the northern region and is working to improve the vessel’s accessibility leading to the port together with other government agencies and related parties. 

In March 2022, MPA launched a new crew change terminal at Pulau Melayu, which holds the potential of generating income of at least RM10 million a year. 

This new terminal is expected to further elevate Miri as a hub of the state’s oil and gas (O&G) industry, as well as offer wharf facilities, bunkering and freshwater supplies services, among others. 

The terminal is also seen as a “game-changer” for MPA amid a very challenging time. 

It will further assist the port, which has been hindered by underutilised wharf and other facilities due to the shallow channel access issue. 

Samalaju Port 

Located strategically within a vast industrial estate at the Samalaju Industrial Park (SIP), the port is well equipped with comprehensive facilities and a huge landbank for future expansion. 

Its primary activity is to offer port facilities and marine services to SIP’s heavy industries. Samalaju Port, which has an access channel of roughly 14m, is committed to acting as the centre region of Sarawak’s economic driver.

The port links the trade in Sarawak’s central region to the rest of the world and is poised to promote international trade by facilitating industrial and commercial activities. 

It is also aimed to complement Sarawak’s economic development through modern port facilities and premium services. 

Tanjung Manis Port 

Tanjung Manis Port (TMP) is located on the right side of Tanjung Sebubal along the upper north bank of the Rajang River. 

It is situated only 30km from the mouth of the Rajang River with a draught of 11m, thus providing a safe berthing place for large oceangoing vessels. 

Its strategic location, landforms and natural deep-water anchorage make TMP a vital hub for feeders and other water carriers utilising the Rajang waterways. This also attracts mainline vessels to potentially call at the proposed new container terminal at Selumit in the future. 

Tanjung Manis Integrated Port Sdn Bhd ED Sadiah Tu said however, in terms of operation performance, TMP did not perform as well as in the previous year based on comparison with the indicators on turnover and container throughput volumes. 

“Nevertheless, we are continually focusing on achieving our main objectives and working hard for strategies to increase productivity and revenues when faced with the economic downturn. 

“We are confident with alternative markets to increase revenue alongside cost efficiency and performance improvement,” she said. 

TMP is situated 30km from the mouth of the Rajang River with a draught of 11m, providing a safe berthing place for large oceangoing vessels (source: tmportauthority.com)

Rajang Port 

RPA is strategically positioned as the distribution centre to the vast hinterlands of Sarawak. It is a feeder port situated in the central region of Sarawak, based within the major administrative district of Sibu, which is located 60km from the South China Sea. The port comprises four centres of operations: Sibu, Sarikei, Tanjung Manis and Sungei Merah.

Its major exports include sawn timber and timber products, while its primary trading partners include ports of the Peninsular Malaysia, and regional ports in Vietnam, Thailand, Singapore, Taiwan, Europe, China Japan and Hong Kong.

RPA’s Lim said it has well navigated the brutality of the pandemic, and has recorded an even better performance in 2020 operation than the year before and has continued to improve in 2021. 

She said RPA is dedicated to continuing to integrate and engaging in operations with other major logistics players in the holistic supply chain