SDC — Strengthening Sabah’s infrastructure and logistics: The Role of Sabah Ports

1. The SDC blueprint has identified strategies to make “The Land Below the Wind” a regional trading hub through modern infrastructure and logistics.
2. The logistics element is one of the strategies aimed at addressing the current high cost of doing business in the state. The strategy for cost reduction is three-pronged:
* Lowering freight and logistical costs through a progressive review of the Cabotage Policy for shipping;
* Enhancing the cost competitiveness of ports in Sabah via alliances with other global port operators and shipping liners; and
* Establishing the Sepangar Free Zone (SFZ), which is annexed to SBCP, by providing attractive incentives to potential investors to set up their manufacturing facilities and distributions in SFZ.
3. Subsequently, the new SBCP and part of Kota Kinabalu Industrial Park (KKIP) will be positioned as the main logistics hub and free trade zone to act as the catalyst and support for industrial development.