Labuan Port to Come under Federal Control after Bintulu Handover
Transition Process
The Labuan Port Authority, currently overseen by the Bintulu Port Authority, will soon operate as a federal port under the Transport Ministry, pending the transfer of the BPA to the Sarawak government next year. Transport minister Loke Siew Fook said several key matters had to be resolved before the formal handover.
Appointment of General Manager
Speaking on a visit to Labuan, Loke said the ministry would appoint a general manager to lead the port authority, ensuring a smooth transition to federal control.
Labuan Integrated Port Project
Concerning the long-proposed Labuan Integrated Port project, Loke said development proposals from the private sector were still being reviewed and that no decision has been made. "Any port development project will follow a privatisation model without requiring government funding. This allows the ministry to act strictly as a regulatory body rather than an operational entity," he added.
Longer Concession Period
Loke said he would ask the Cabinet about extending the concession period of the current port operator, Megah Port Management Sdn Bhd, which has a six-year contract. A longer concession could enable further enhancements at the port, including repairs to the ageing jetty, he said.
"Upgrading the jetty’s capacity would allow us to accommodate cruise liners, bringing in more foreign vessels and economic opportunities for the region by further positioning Labuan as a destination for travellers," he said. Loke said the port operator had invested RM25 million in new machinery such as mobile cranes, which have boosted the port’s cargo-handling capacity and efficiency, allowing the port to operate around the clock.
Conclusion
The transition of Labuan Port to federal control promises to bring about new opportunities for the region. The appointment of a general manager and the potential extension of the concession period will ensure a smooth transition and lay the groundwork for future growth and development.
Frequently Asked Questions
Q: What is the current state of the Labuan Integrated Port project?
A: The project is still being reviewed, and no decision has been made.
Q: Will the government require funding for the port development project?
A: No, the project will follow a privatisation model without requiring government funding.
Q: What is the potential impact of extending the concession period?
A: Extending the concession period could enable further enhancements at the port, including repairs to the ageing jetty.