Yes, Minister! Ports set to brave the challenging times
Uggah arriving at the State Legislative Assembly to deliver his winding up speech. – Photo by Chimon Upon
A MAJOR element in boosting trade and commerce as well as Sarawak’s overall economy in the context of regional and global economic growth is the development of an integrated port management system along with improved infrastructure and enhanced trade partnerships and collaboration.
A key factor in this is the strategic logistical development of coastal ports, which serve as an essential route for the transportation of commodities in international trade.
Facilitating the sustainable expansion of Sarawak’s economy will be sustained by supporting the concerted growth of global trade and coastal port operations.
In light of this and in the larger framework of an ambitious strategy for trade and commerce, the Sarawak Ports Authority will soon be set up to oversee, manage, govern, and administer all of Sarawak’s ports. This comes after the State Legislative Assembly last week passed the Sarawak Ports Authority Bill 2024.
Sarawak Ports Authority Bill 2024
The Sarawak Ports Authority will serve as a regulatory agency, while a separate operator would be in charge of port operation, according to the Bill, which was tabled by Deputy Premier Datuk Amar Douglas Uggah Embas, who is also the Minister of Infrastructure and Port Development.
Previously, different entities serving as both regulators and operators oversaw and ran the ports in Sarawak, including Kuching Port Authority, Rajang Port Authority, Tanjung Manis Port Authority, Bintulu Port Authority and Miri Port Authority. All the aforesaid will be history with the coming into operation of a singly port authority, Sarawak Ports Authority, and with that the major structural and administrative problems that have been plaguing the individual ports will be over.
The proposed centralised port authority will replace all existing port authorities and that this model of centralisation could help Sarawak ports become more competitive and efficient, aligning with the broader economic goals of the regions. There will be three stages to the centralisation of port management and operations: the interim, corporatisation, and privatisation phases.
Streamlining port management
The efficiency of export commerce would be enhanced overall by the consolidation and streamlining of port managements in Sarawak, which will also expedite the turnaround time for ships arriving at port to load and unload cargo.
Fortifying the development of coastal ports’ infrastructure, encouraging low-carbon operations, enhancing resource allocation, and fostering deeper collaboration with coastal ports in importing and exporting nations are key definers of the challenges and opportunities that Sarawak ports must brave for.
Sarawak ports will be able to successfully negotiate the difficult path ahead as a result of this.
Multiplier value chain
Combining port administration under one authority starts a multiplier value chain. Foreign commerce development helps local resource-based businesses, which in turn encourages the growth of the urban economy, increases employment rates, and offers answers to issues faced by local residents.
From a macroeconomic perspective the improvement in the competitiveness of logistics, port-related businesses, and the industrial sector is reflected in the rise in port logistics level, which is critical to the expansion of Sarawak’s economy.
Evolution of ports
Port authorities have traditionally been responsible for the development and improvement of the port area related to port operations, ranging from infrastructure development and maintenance to the marketing and management of port facilities.
Functioning as a port-managing body, port authority takes over public, commercial and economic roles. Several objectives of the general interest of society are followed by the port authorities, such as: promoting trade and industry, ensuring long-term sustainable port operation, improving maritime and hinterland connectivity, etc.
As the body in charge of overseeing ports, port authorities have taken the initiative to create port information systems by making information technology more widely available, enhancing communication and information sharing amongst many stakeholders, including customs, freight forwarders, and carriers.
Over the last 10 years, port strategies have changed globally. Port authorities are now more engaged in the administration of logistics systems, have changed their purpose and character, and occasionally are exhibiting managerial and entrepreneurial traits.
Looking back to the ports of yesteryear, one is able to take cognisance of the evolution that most ports have undergone.
From a landlord, when the port authority was in charge of managing public works initiatives and advancing the goals of the port cluster as a whole, the ports evolved into becoming cluster managers.
Port authorities are contemporary, hybrid entities that manage the activities that come under their jurisdiction in the context of clusters. Information technology, stakeholder relations, training and education initiatives, and port marketing and promotion are just a few of the many activities that port management groups are supporting and managing more and more these days.
Yes Minister, increasingly important today is stakeholder relationship management which is essential to improving the port cluster’s prospects and is a fundamental component of contemporary port administration in advanced economies. It involves monitoring critical topics, involving stakeholders, and implementing strategies.
Stakeholder interactions are given top priority by port authorities once various stakeholders have been categorised and identified, their potential influence on the planning and development of port operations has been evaluated, and the organisation’s connections with the most influential stakeholders have been managed.
Social, environmental responsibility
Local communities gain a great deal from port growth and extension on a social and economic level, particularly in terms of commerce and competitiveness. From an economic standpoint, they draw in investment, boost company expansion, and provide job possibilities. Ports, which serve as the meeting point for land and marine transit, are essential to both economic growth and transportation networks.
However, port expansion and growth also come with social and environmental obligations that need to be met in order to guarantee that the advantages are distributed responsibly and fairly.
Port developments may have a negative impact on the environment due to pollution, habitat loss, and climate change, which might have an adverse effect on the local communities’ health and well-being as well as the ecosystems, if sustainable measures are not effectively implemented.
Indeed, Minister!
Port developments may also have social repercussions that affect local stakeholders’ rights and interests, particularly those of marginalised and disadvantaged populations.
Stakeholder involvement, corporate social responsibility, social impact assessment, and green port initiatives are seen as effective preventative corrective and mitigation actions.
Yes, Minister. Making sure that port expansion promotes sustainable growth and development rather than degrading the quality of our environment is crucial.
Governments, international organisations, and the corporate community worldwide are becoming increasingly concerned about environmental sustainability and port development.
The government of Sarawak acknowledges this and has implemented policies in the port operating framework that prioritise environmental conservation, and require the centralised port authority to uphold it as a fundamental component of sound management practises.
Port Community Systems
The development of a Port Community System (PCS) is one of the most important factors in favour of seaport growth. In seaport communities, a PCS acts as a digital platform that encourages the sharing of information between commercial and public port users in a safe and respectful manner, hence supporting sustainable business practices.
Productivity gains are possible at every stage of the cargo process, including ship loading and unloading, customs clearance, and other operations carried out both within and outside the seaport terminal, thanks to this advanced, real-time, flexible, and efficient information system.
With more collaboration and integration between supply chain participants and the port, both the port and the supply chain as a whole will be more sustainable.
Social dimension
Ideally, ports should plan port development and expansion within the construct of social, political and economic realities. This will ensure that ports grow and expand in a sustainable way across the board.
The Sarawak Ports Authority may consider early the greening of port development and operations as a measure to ensure sustainability. This may come by introducing
green and sustainable dredging practices, carbon efficient/carbon neutral marine cargo handling facilities and infrastructure, green and carbon efficient buildings and sustainable methods to manage construction projects.
The Sarawak Port Authority, starting on a clean slate with a clear mission of contributing to a balanced economic growth, should be able to address the social challenges and recognise that the social dimensions of sustainability are critical to the success of sustainability programmes for ports and maritime.
A socially-sustainable port is able to get the complete support of its stakeholders when sustainability turns into a passport for the ports’ growth and expansion.
Social science reveals that in order to achieve sustainability and performance in port operations as multipurpose business hubs that promote value creation and economic growth, it is necessary to balance concerns pertaining to land and the environment, labour and social issues, and economic and technological challenges.
* Toman Mamora is ‘Tokoh Media Sarawak 2022’, recipient of Shell Journalism Gold Award (1996) and AZAM Best Writer Gold Award (1998). He remains true to his decades-long passion for critical writing as he seeks to gain insight into some untold stories of societal value.