DP World may be planning to increase Malaysian footprint

Two separate sources confirm that Suria Cap is in negotiations with DP World
Dp world, Malaysia

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Suria Capital Holdings Bhd, whose majority shareholder is the Sabah state government in Malaysia, is in talks to sell a stake in its wholly-owned subsidiary Sabah Ports Sdn Bhd, sources say, with DP World reportedly among the interested parties.

Two separate sources confirm that Suria Cap is in negotiations with DP World PLC, a global port terminal operator based in Dubai.

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In an email response to queries from The Edge, Suria Cap would only say, “We do have enquiries from a couple of foreign interests looking for possible investment opportunities in Suria group.”

DP World’s answer to questions from The Edge was a flat, “We don’t comment on any market speculation.”

Sabah Ports has a 30-year concession that commenced in 2004 to manage and operate eight ports in the state, providing berthing, handling and cargo facilities to users.

The ports under its purview are Kota Kinabalu Port, Sapangar Bay Container Port, Sapangar Bay Oil Terminal and Kudat Port, all located on the west coast of Sabah, while Sandakan Port, Tawau Port, Lahad Datu Port and Kunak Port on the east coast are also in Suria Cap’s stable.

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Sabah Ports’ jewel in the crown is Sapangar Bay Container Port, which has taken over container operations from Kota Kinabalu Port and is being positioned as the transshipment hub for the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area.

It is noteworthy that an expansion of Sapangar Bay Container Port, which, among other things, aims to increase the length of its berths from 500m to 850m, is slated to be completed by 2023.

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