Sarawak to seek return of Bintulu Port

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A file picture of Samalaju Industrial Port

BINTULU: The Sarawak government wants to take back Bintulu Port from the Federal government as part of the state’s overall port development strategy.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg made known the intention of the state government in his speech at a dinner to commemorate Samalaju Industrial Port’s (SIPSB) 10th anniversary here Monday night.

Towards this end, he said the State government would be in discussion with the Federal government to discontinue Bintulu Port as a federal port so that it could be administered and further developed as a state port in accordance with the strategies drawn up for ports in Sarawak.

“The implementation of these development strategies for all ports in Sarawak therefore must include Bintulu Port which should come under the jurisdiction of the state, as a state port,” he pointed out.

Abang Johari said this would then enable the State government to have a masterplan for the development of all ports in Sarawak and to ensure each port plays its own special role in the promotion of trade and businesses.

This would then enhance shipping connectivity with other major global transportation and logistics hubs, he added.

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Bintulu Port Sdn Bhd (BPSB) was granted a concession on Jan 1, 1993 for the operation of the port in which the Sarawak Government has 39.7% shares and Petronas and MISC Berhad together hold 30.8% shares, totalling 70.5% of BPHB’s issued shares which are listed on Bursa Malaysia.

The Premier said the State government wanted Bintulu Port to be part of a cluster of state ports, under a Central Port Authority which would be incorporated by state law.

“This new Central Port Authority will streamline and coordinate the management, operation, planning and development of all ports located in the state.”

He said CPA would be able to ensure harmonisation of port tariffs and dues for all ports in Sarawak.

Bintulu Port’s tariffs have not been revised or increased since 1993 and are lower than those of state ports, thus diverting traffic from state ports.

“This is against the recommendation of the IGC (Inter-Governmental Committee) that there should be no discriminatory port dues and fees among the ports in Sarawak that would have the effect of diverting trade and maritime traffic from any of the ports,” he told the audience at the dinner.

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Abang Johari pointed out the State government would like to continue working with Petronas, as major stakeholders of the port, to manage, operate the Bintulu Port and undertake the development of this port for the advancement of both parties’ strategic business interests, the attainment of sustainable development goals, to better serve its hinterland and other stakeholders and ensure its continued growth and success.

“The State government and Petronas have a proven track record of successfully managing and operating Bintulu Port over the years. With the same commitment and good cooperation between the state and Petronas, Bintulu Port will have the opportunity of transformation towards becoming a major port or transportation hub in the Asia Pacific region,” he added.

He called on the shareholders, especially Petronas, and the Board of Directors, and Management of BPHB to support this key development initiative for the mutual benefits of all parties involved.

Dwelling at length on the formation of Bintulu Port, he said it ought to be noted that, on Malaysia Day, there was no federal port here or anywhere in Sarawak.

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“In 1978, Parliament passed the Declaration of An Area in Bintulu District as a Federal Port Act (Act 217).

“This Act was passed without the mandatory request from the State Legislature of Sarawak as required under Article 76(1)(c) of the Federal Constitution.

“With the enactment of Act 217, Bintulu Port was declared a federal port. Parliament then passed the Bintulu Port Authority Act, 1981 to constitute the Bintulu Port Authority (BPA) whose functions were to build, control, administer and regulate Bintulu Port.”

Touching on the 10th anniversary of SIPSB, the Premier expressed gratitude to the company for building, managing and operating the port primarily to serve the industries at the Samalaju industrial zone.

For the year 2022, SIPSB has reported an operating revenue of RM164.6 million and cargo throughput of 6.6 million tonnes.

Fully operational since 2017 it is projected, with the steady growth of heavy industries at Samalaju, that the port would be handling over 10 millions tonnes of cargo by the year 2030.

The total cost for the development of the port was RM1.71 billion including dredging of navigational channels and breakwaters.

A file picture of Bintulu Port

 

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