Sabah Customs Ends Labuan-bound Cargo Transit via Kota Kinabalu Port
By Jailani Hasan
LABUAN, Oct 15 (Bernama) -- Sabah Customs has decided to discontinue the arrangement allowing Labuan-bound cargo and containers to transit through Kota Kinabalu Port for onward delivery to the island by road and ferry.
The decision was made during a courtesy call by representatives of the Labuan Chamber of Commerce (LCC) and the Chartered Institute of Logistics and Transport Malaysia (CILTM) Sabah on acting Sabah Customs director Daisun Saibeh @ Edward at the Customs office on Wednesday.
LCC president Daniel Doughty welcomed the decision, saying it would help safeguard the long-term viability of direct shipping services to Labuan.
He said both organisations had raised concerns over the continued use of the transit arrangement, particularly its potential impact on cargo volumes handled directly through Labuan Port.
"The arrangement was relaxed during the COVID-19 pandemic when stringent health requirements prompted some vessel operators to suspend their calls at Labuan, making alternative cargo routes necessary at the time.
"However, its continued use beyond those exceptional circumstances could undermine Labuan's cargo base, which is essential to sustaining commercially viable direct shipping services to the island," he told Bernama today.
Doughty said maintaining sufficient cargo volumes was critical to ensuring that shipping operators could continue providing reliable and competitive direct services to Labuan.
“Direct shipping services require adequate cargo volumes to remain commercially sustainable… protecting these services is important not only for the shipping industry but also for Labuan's businesses, consumers and overall economic resilience,” he said.
He commended Daisun and his team for their firm position on the matter and their willingness to engage with industry stakeholders in addressing the concerns.
Doughty said Sabah Customs had reaffirmed that the transit arrangement was no longer permitted, urging all stakeholders, particularly shipowners, transport operators, freight forwarders and shipping agents, to comply with the prevailing Customs requirements.
He also stressed the importance of clear guidance and close coordination between the authorities and industry players to minimise potential disruptions to businesses.
"The decision should be complemented by industry efforts to strengthen the reliability and competitiveness of direct shipping services to Labuan, ensuring the island remains well connected and its businesses continue to benefit from efficient cargo transportation," he said.
-- BERNAMA