Container port and freight handling in Sabah

Maritime & Aviation Logistics

A cornerstone of Sabah’s growth, positioned inside the BIMP-EAGA corridor with access to nearly 80 million people.

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Sabah sits on the crossroads of South China Sea shipping lanes, at the heart of BIMP-EAGA.

Sabah’s logistics sector is a cornerstone of its economic growth, supported by expanding maritime, land and air infrastructure and with access to nearly 80 million people across BIMP-EAGA. Sapangar Bay Container Port is under upgrade, the Pan Borneo Highway is closing, and Kota Kinabalu International is Malaysia’s second busiest airport. The openings are in cold-chain logistics, warehousing and smart supply-chain capability.

THE INVESTMENT CASE

01
80M
PEOPLE REACHABLE ACROSS BORNEO
At the heart of BIMP-EAGA
A natural transhipment point on South China Sea lanes between ASEAN and global markets.
02
1.25M TEU
SAPANGAR BAY CAPACITY ON COMPLETION
A deep-water gateway under upgrade
Rising from 500,000 TEU, with management and operations entrusted to DP World.
03
No. 2
BUSIEST AIRPORT IN MALAYSIA
Air freight already at scale
KKIA sits ten minutes from the city and twenty from the container port.
04
706 km
PAN BORNEO HIGHWAY, SABAH STRETCH
Land links closing
78% complete and targeted for early 2026, linking Sarawak, Brunei and Kalimantan.
05
4
SERVICED INDUSTRIAL PARKS
Land beside the infrastructure
KKIP, SIP Sandakan, POIC Lahad Datu and SOGIP, with utilities and direct access in place.

BY THE NUMBERS

The gateway capacity being built, the land links being finished, and the market inside reach of both.

MARKET
80M
people reachable across BIMP-EAGA
CONTAINER PORT
1.25M
TEU capacity at Sapangar Bay on completion
TODAY
500,000
TEU capacity before the upgrade
AVIATION
No. 2
busiest airport in Malaysia, KKIA
HIGHWAY
706 km
Pan Borneo Highway across Sabah
PROGRESS
78%
of the Sabah stretch complete
NETWORK
5,324 km
Pan Borneo Highway across Borneo
JETTY
30,000
DWT vessels at the SIP Sandakan jetty
SEA-AIR
20 min
between KKIA and Sapangar Bay Container Port

Sources: Sapangar Bay container capacity, DP World and Sabah Ports, April 2024: capacity rises from 500,000 TEU to 1.25 million on completion of the expansion. No completion date is stated here because the published dates have moved. Everything else on this page: MIDA, “Transforming Sabah Into A Logistics Hub: Leveraging Strategic Location and Infrastructure Development”, December 2024.

HOW THE CARGO MOVES INTERACTIVE

Pick a mode to see what already exists and what is still missing.

Sea, land, air and the systems that tie them together. Each mode below lists the capacity in place, and the sage panel names the gap a new entrant would fill.

01 SEA
The deep-water gateway is being rebuilt around transhipment.

Sabah sits at the northern tip of Borneo on the crossroads of South China Sea shipping lanes, a natural transhipment point between ASEAN and global markets. Sapangar Bay is under upgrade, and the east coast carries its own jetty and bulk capacity.

THE GAP
Free-zone warehousing and container-adjacent handling that converts new berth capacity into transhipment volume rather than exporting it.
01
Sapangar Bay Container Port
Capacity rising from 500,000 to 1.25 million TEU, operated by DP World.
02
Sandakan Port
East coast gateway, 15.1 km from the Sandakan industrial park.
03
Tawau Port
Perishables and cross-border trade with Indonesian and Philippine routes.
04
POIC Lahad Datu
Dedicated deep-water port and liquid bulk jetty inside the cluster.
05
SOGIP jetty
Industrial jetty and bulk handling for heavy industry at Sipitang.
06
Free zone facilities
Zone and park facilities sitting next to the port infrastructure.
02 ROAD
One highway, three borders.

Phase one of the Sabah stretch spans 706 km of the 5,324 km Borneo network and is 78% complete, targeted for the first quarter of 2026. It links Sabah to Sarawak, Brunei and Indonesian Kalimantan, and it connects all four serviced industrial parks.

THE GAP
Distribution centres and inland consolidation along the completed highway, plus multi-temperature trucking between the two coasts.
01
Pan Borneo Highway
706 km across Sabah of a 5,324 km Borneo network, 78% complete.
02
Cross-border links
Road access to Sarawak, Brunei and Indonesian Kalimantan.
03
Warehousing & distribution
Modern storage and fulfilment centres with automation for e-commerce.
04
Cold-chain trucking
Multi-temperature movement between the east and west coasts.
05
Industrial park access
KKIP, SIP Sandakan, POIC Lahad Datu and SOGIP on the network.
03 AVIATION
Malaysia’s second busiest airport, with cargo capacity going in.

Kota Kinabalu International handles the second largest passenger volume in Malaysia, sits ten minutes from the city centre and twenty from Sapangar Bay, and is being expanded for air cargo by Malaysia Airports alongside commercial and retail development.

THE GAP
Air cargo handling, MRO line and base maintenance, and aerospace component work supported by local technical training.
01
Kota Kinabalu International
Second busiest airport in Malaysia by passenger volume.
02
Air cargo expansion
Malaysia Airports is expanding cargo handling capacity at KKIA.
03
Sea-air corridor
Twenty minutes between the airport and the container port.
04
MRO
Line, base and component maintenance, repair and overhaul.
05
Perishables handling
Cold-chain handling for seafood and high-value perishables.
06
Aerospace components
Component work supported by local technical training.
04 SYSTEMS
Technology is where the next efficiency gain sits.

Operators in Sabah are adopting blockchain for secure chain-of-custody records, IoT sensors for real-time cargo and temperature tracking, and AI-driven predictive analytics for demand and route planning. For an investor, that is an opening to bring platform capability into a market whose trade volumes are already substantial.

THE GAP
Platform ventures: chain-of-custody, cargo visibility and route planning sold into palm oil, timber, seafood and oil and gas flows.
01
Chain of custody
Blockchain records for secure, auditable cargo provenance.
02
Cargo visibility
IoT sensors for real-time location and temperature tracking.
03
Predictive analytics
AI-driven demand forecasting and route planning.
04
Platform capability
Software sold into substantial and growing commodity trade flows.
WHERE THE CARGO MOVES THROUGH INTERACTIVE

Four gateways. Pick one to read its profile.

Select a gateway below, or click a pin on the map. The panel shows its capacity, its access and what already operates there.

SAPANGAR BAY DEEP-WATER CONTAINER GATEWAY
Sapangar Bay Container Port
CAPACITY ON COMPLETION
1.25 million TEU
OPERATOR
DP World
WHAT IS THERE NOW
Upgrades under way to lift annual capacity from 500,000 to 1.25 million TEU
Management and operations entrusted to DP World by Sabah Ports
Targeted as a premier regional trade hub within BIMP-EAGA
On the South China Sea shipping lanes between ASEAN and global markets
LOGISTICS & ACCESS
7 km to KKIP serviced industrial land
20 min to Kota Kinabalu International Airport
Natural transhipment point at the northern tip of Borneo
PRIORITY INDUSTRIES
TranshipmentContainer handlingFree zone logisticsBulk & break-bulkWarehousing & distribution
KKIA AIR CARGO AND MRO GATEWAY
Kota Kinabalu International Airport
PASSENGER RANK
No. 2
TO THE CONTAINER PORT
20 min
WHAT IS THERE NOW
Second busiest airport in Malaysia by passenger volume
Malaysia Airports is expanding air cargo handling capacity
Ten minutes from the city centre, twenty from Sapangar Bay
Sea-air transhipment practical within a single corridor
LOGISTICS & ACCESS
Commercial and retail development alongside the cargo expansion
Airport management frameworks drawn from Singapore, Australia and Canada
Local technical training base for aviation work
PRIORITY INDUSTRIES
Air cargo & freightCold-chain handlingMRO, line and baseAerospace componentsPerishables export
SANDAKAN EAST COAST BULK AND JETTY CAPACITY
Sandakan and SIP jetty capacity
JETTY
30,000 DWT
BULKING
46,600 MT
WHAT IS THERE NOW
Permanent jetty inside SIP Sandakan for 30,000 DWT vessels
46,600 MT of bulking capacity on site
Inside the Sandakan mill catchment on the east coast
Two phases of serviced industrial land released by Sawit Kinabalu
LOGISTICS & ACCESS
15.1 km from SIP to Sandakan Port
16.8 km from SIP to Sandakan Airport
Pan Borneo Highway link to the west coast
PRIORITY INDUSTRIES
Bulk liquid logisticsWarehousingCold chainExport packingPalm downstream handling
TAWAU PERISHABLES AND CROSS-BORDER TRADE
Tawau east coast gateway
REGION
East coast
GATEWAY
Port + airport
WHAT IS THERE NOW
Tawau Port and airport handle the region’s perishables
Serves the cocoa, aquaculture and tropical fruit belt
Adjacent to Indonesian and Philippine sourcing routes
Cold chain is the binding constraint on premium export
LOGISTICS & ACCESS
Air and sea capacity for time-sensitive cargo
Established grower and fisher base inland
Pan Borneo Highway link to both coasts
PRIORITY INDUSTRIES
Cold-chain logisticsPerishables exportCross-border tradeWarehousingMarine products handling

Map: Zh9567 / Wikimedia Commons, CC BY-SA 4.0

THE PORTS THEMSELVES SABAH PORTS’ OWN FIGURES

Eight ports, one operator, and what Sabah Ports publishes about each of them.

SAPANGAR BAY CONTAINER PORT WEST COAST
Sapangar Bay Container Port
BERTH LENGTH
500 m · berths 1, 2 & 3
DEEPEST BERTH
12 m
MAX VESSEL
45,000 DWT
STORAGE
Container yard, 2,600 ground slots
WHAT SABAH PORTS SAYS
A dedicated container facility, positioned as the premier transhipment hub for BIMP-EAGA
Strategically located along the busy shipping routes between the Far East and Europe
Has taken over the container operations from Kota Kinabalu Port
Four STS gantry cranes and nine rubber-tyred gantry cranes
BERTHS & HANDLING
Outer berths 1, 2 and 3 run 500 m; inner berth 4 runs 145 m
Container freight station of 4,536 m², with 338 reefer points
Plans are under way to rationalise port operations statewide through hubbing
CARGO TYPES HANDLED
ContainerRORO

Figures: Sabah Ports Sdn Bhd, spsb.com.my/our-ports/, read 8 September 2026.

SAPANGAR BAY OIL JETTY WEST COAST
Sapangar Bay Oil Jetty
Approximate location
BERTH LENGTH
275 m · jetty II
DEEPEST BERTH
12 m
MAX VESSEL
60,000 DWT
STORAGE
Tank capacity 30,000 mt
WHAT SABAH PORTS SAYS
A dedicated terminal for refined petroleum products and liquid chemical
Surrounded by major oil and gas facilities such as Shell, Esso and Petronas
An expansion of over 20 million Ringgit is under way to take larger tankers
Serves the west coast of Sabah, and is poised to be the region’s oil and gas terminal hub
BERTHS & HANDLING
Two jetties: jetty I at 253.3 m, jetty II at 275 m
Five marine loading arms and eleven product pipelines
Storage tanks of 2,500 mt and 4,000 mt, with six gantry bays
CARGO TYPES HANDLED
Liquid refined petroleum productsChemical cargo

Figures: Sabah Ports Sdn Bhd, spsb.com.my/our-ports/, read 8 September 2026.

KOTA KINABALU PORT WEST COAST
Kota Kinabalu Port
BERTH LENGTH
350 m · berths 1, 2 & 3
DEEPEST BERTH
9.8 m
MAX VESSEL
16,000 DWT
STORAGE
Godown 6,769 m² · open 16,500 m²
WHAT SABAH PORTS SAYS
One of Sabah’s earliest and main ports
Sapangar has taken over the major port role, and the container traffic with it
Today it handles non-containerised cargo only: general cargo and dry bulk
Jesselton Quay is being developed here as a new waterfront landmark
BERTHS & HANDLING
Berths 1, 2 and 3 run 350 m at 9.6 to 9.8 m depth
A CIQS terminal inside the godown, 1,769 m²
Cruise vessels and roll-on, roll-off services handled here
CARGO TYPES HANDLED
Break bulkDry bulkCruise

Figures: Sabah Ports Sdn Bhd, spsb.com.my/our-ports/, read 8 September 2026.

KUDAT PORT NORTH
Kudat Port
BERTH LENGTH
112 m · outer berth
DEEPEST BERTH
6.4 m
MAX VESSEL
4,000 DWT
STORAGE
Open storage 3,028 m²
WHAT SABAH PORTS SAYS
Closer proximity to the Philippines makes it a top choice for trade to the archipelago
Mostly handles general cargo and timber-related products
A passenger ferry terminal and a roll-on, roll-off ferry ramp on site
A CIQS terminal of 615 m² at the godown
BERTHS & HANDLING
Outer berth 112 m at 6.2 m depth; inner berth 92 m at 6.4 m
Passenger ferry terminal of 24 m and a ferry ramp of 69 m
Sabah Ports’ nearest port to the Philippine archipelago
CARGO TYPES HANDLED
Break bulk

Figures: Sabah Ports Sdn Bhd, spsb.com.my/our-ports/, read 8 September 2026.

SANDAKAN PORT EAST COAST
Sandakan Port
BERTH LENGTH
281 m · berth 2A, outer
DEEPEST BERTH
11.1 m
MAX VESSEL
45,000 DWT
STORAGE
3 godowns, 18,989 m²
WHAT SABAH PORTS SAYS
The second busiest port in Sabah
On the east coast, in a region renowned for its palm oil industry
A main wharf of four berths, plus three oil terminals
700 TEUs of container ground slots and 32 reefer points
BERTHS & HANDLING
Three oil terminals: Karamunting bulk oil, Karamunting palm oil and Mowtas
Two mobile harbour cranes and seven reachstackers on site
Handles containers, break bulk, dry bulk, bulk oil, palm oil and a passenger ferry
CARGO TYPES HANDLED
Break bulkDry bulkBulk oilPalm oilPassenger ferryContainer

Figures: Sabah Ports Sdn Bhd, spsb.com.my/our-ports/, read 8 September 2026.

LAHAD DATU PORT EAST COAST
Lahad Datu Port
BERTH LENGTH
190 m · berth 4, outer
DEEPEST BERTH
12 m
MAX VESSEL
45,000 DWT
STORAGE
Godown 752 m² · open 5,653 m²
WHAT SABAH PORTS SAYS
Strongly supported by the palm oil industry
A catalyst for the oleochemical and biodiesel industry in East Malaysia
Set to be the central hub for the import of bulk fertilizer for the east coast
Beside the Palm Oil Industrial Cluster (POIC) Lahad Datu
BERTHS & HANDLING
A main wharf of three berths and an old wharf of two
Container yard of 93 ground slots
Six hoppers, a shuttle carrier and a reachstacker on site
CARGO TYPES HANDLED
Break bulkDry bulkPalm oilContainer

Figures: Sabah Ports Sdn Bhd, spsb.com.my/our-ports/, read 8 September 2026.

KUNAK PORT EAST COAST
Kunak Port
BERTH LENGTH
200 m · berth 1
DEEPEST BERTH
17 m
MAX VESSEL
45,000 DWT
WHAT SABAH PORTS SAYS
A dedicated crude palm oil port
Projected to handle 1.4 million tonnes of palm oil
Planned as the east coast’s central hub for palm kernel expeller export
Handling equipment is a PKE conveyor machine and one forklift
BERTHS & HANDLING
Berths 1, 2 and 3 all at 17 m depth
Berth 1 runs 200 m, berth 2 190 m, berth 3 70 m, berth 4 120 m
Boosted by major palm oil players on the east coast
CARGO TYPES HANDLED
Palm oilPKE

Figures: Sabah Ports Sdn Bhd, spsb.com.my/our-ports/, read 8 September 2026.

TAWAU PORT EAST COAST
Tawau Port
BERTH LENGTH
302 m · berths 3, 4 & 5
DEEPEST BERTH
11 m
MAX VESSEL
16,000 DWT · berths 3, 4 & 5
STORAGE
2 godowns, 9,336 m²
WHAT SABAH PORTS SAYS
On the east coast, in close proximity to Kalimantan Borneo
A multipurpose port equipped to handle various cargo types
Now a major east coast port for the volume it handles, second to Sandakan
Container yard of 1,010 ground slots and 40 reefer points
BERTHS & HANDLING
Outer berths 3, 4 and 5 run 302 m at 11 m depth
Tanjung Batu oil jetty takes vessels to 30,000 DWT
Close to Kalimantan Borneo, a catalyst for the port business
CARGO TYPES HANDLED
Break bulkDry bulkBulk oilPalm oilContainer

Figures: Sabah Ports Sdn Bhd, spsb.com.my/our-ports/, read 8 September 2026.

Map: Zh9567 / Wikimedia Commons, CC BY-SA 4.0

The eight Sabah Ports ports in full
SITE REGION BERTH LENGTHDEEPEST BERTHMAX VESSELSTORAGE
Sapangar Bay Container Port WEST COAST 500 m · berths 1, 2 & 312 m45,000 DWTContainer yard, 2,600 ground slots
Sapangar Bay Oil Jetty WEST COAST 275 m · jetty II12 m60,000 DWTTank capacity 30,000 mt
Kota Kinabalu Port WEST COAST 350 m · berths 1, 2 & 39.8 m16,000 DWTGodown 6,769 m² · open 16,500 m²
Kudat Port NORTH 112 m · outer berth6.4 m4,000 DWTOpen storage 3,028 m²
Sandakan Port EAST COAST 281 m · berth 2A, outer11.1 m45,000 DWT3 godowns, 18,989 m²
Lahad Datu Port EAST COAST 190 m · berth 4, outer12 m45,000 DWTGodown 752 m² · open 5,653 m²
Kunak Port EAST COAST 200 m · berth 117 m45,000 DWT—
Tawau Port EAST COAST 302 m · berths 3, 4 & 511 m16,000 DWT · berths 3, 4 & 52 godowns, 9,336 m²
WHAT WE ARE ASKING FOR

Three propositions, in the order the infrastructure supports them.

Each one is a gap in the network above, matched to the gateway that already has the capacity, the catchment and the connection for it.

01 DISTRIBUTION
Warehousing, distribution and smart logistics
Modern storage and fulfilment centres with automation, serving e-commerce and regional supply chains.
WHERE
KKIP · 7 km from Sapangar Bay Container Port
WHAT IT RUNS ON
1.25 million TEU of container capacity coming on stream
WHY IT IS OPEN
Automated storage and fulfilment is thin in a market whose trade volumes are already substantial.
INVEST SABAH · FACILITATED APPROVALS
02 COLD CHAIN
Cold-chain logistics
Multi-temperature warehousing and handling for seafood, agricultural produce, pharmaceuticals and FMCG.
WHERE
Tawau · Sandakan · KKIA
WHAT IT RUNS ON
Perishable volume from both coasts and the interior
WHY IT IS OPEN
Multi-temperature capacity is the binding constraint on exporting perishables at premium prices.
STATE INCENTIVES TARGET COLD CHAIN
03 AVIATION
Air cargo and MRO
Line, base and component maintenance alongside air freight for high-value, time-sensitive goods.
WHERE
Kota Kinabalu International Airport
WHAT IT RUNS ON
Malaysia’s second busiest airport, twenty minutes from the container port
WHY IT IS OPEN
Cargo capacity is being expanded and sea-air transhipment works in a single corridor.
MAHB CARGO EXPANSION UNDER WAY

PUT A PROPOSITION TO US

WHAT YOU GET

What the National Investment Incentive Framework awards a project here.

The National Investment Incentive Framework grades projects on quality, then reads the award off the enhanced tier, the row that applies to most projects here. The state can add to the federal award on land premium and infrastructure.

FEDERAL NIF · ENHANCED TIER
Special Tax Rate, High quality
Frontier or advanced activity, high-skilled roles, strong export orientation.
0% FOR 15 YEARS
Special Tax Rate, Medium quality
A commercially sound operation that does not clear the High bar.
5% FOR 15 YEARS
Investment Tax Allowance
Against qualifying capital expenditure, offset up to 100% of statutory income.
100% QCE FOR 10 YEARS
Baseline quality
Earns nothing under the General category. On the enhanced tier it still qualifies.
10% FOR 5 YEARS
State-level support
Land premium treatment and infrastructure support, on top of the federal award.
CASE BY CASE

Eligibility is assessed case by case against the quality bands. Confirm your project’s band with an Invest Sabah officer before committing capital.

WHAT THE STATE ADDS

State and federal support that sits alongside any federal award, coordinated through one channel.

Incentives targeting cold-chain activityFree zone facilities beside the portIndustrial land with utilities in placeOne facilitated approvals channelInvest Sabah and SEDIA coordinationLand premium treatment
The full incentive tables LEARN MORE →

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