Cargo volume at Labuan Port, located in the Malaysian federal territory of Labuan off the coast of Borneo in the east, is expected to rise beginning the middle of this year following the signing of a memorandum of understanding between the business chambers of Labuan and Palawan in southern Philippines.
The Chamber of Malay Entrepreneurs, the frontrunner of the Labuan Liberty Port Management Sdn Bhd which manages Labuan Port, inked the deal recently with Brooke’s Point (Palawan) Chamber of Commerce and Industry.
The move is seen to boost cargo traffic for the port, said Bernama in a news report.
Philippine Ambassador to Malaysia J. Eduardo Malaya said huge business opportunities could be explored between Palawan and Labuan.
“Turning Labuan Port, a freeport, into cargo transshipment, is among one of the areas we are looking at, apart from bringing crops and halal-certified products into the island,” he said.
Labuan being connected to many emerging economies, the Labuan Port attracts investors and businesses from southern Philippines wanting to use the port as their gateway, he added.
Malaya said other potential business ventures that can be explored by the two parties include processed food products, information technology services, and engineering services.
“It is time to rekindle the old strong socioeconomic partnership between Labuan and Palawan, especially Brooke’s Point. With Labuan as a halal hub, there is tremendous potential for export of livestock, such as goats, to Singapore, Indonesia, and Middle Eastern countries.”
“As Labuan diversifies its markets (and) Palawan looks for new markets, there is so much economic potential between these two places that can be harnessed. Indeed, Labuan and Palawan are ideal partners,” he said.
Rail freight company expands route
In other developments, Malaysia’s rail freight service KTMB MMC Cargo has successfully extended its connectivity for domestic and transhipment containers from Port Klang to Johor Port and is planning to stretch it all the way to the Port of Tanjung Pelepas (PTP).
In a statement, KTMB MMC said the company’s 100-container freight train, the longest laden container train, successfully embarked on a landmark journey from Port Klang to Johor Port, and is looking to extend it further to PTP.
KTMB MMC Cargo is responsible for developing rail freight services for integrated and efficient inland distribution of the cargo of port users.
Photo: Lofor
