In a statement to Bernama today, MPM, the operator of Labuan Port, said the decision could serve as a catalyst for enhancing logistics efficiency, strengthening the island’s cargo base and driving long-term economic growth.

MPM emphasised the importance of establishing a joint coordination platform involving LPA, Labuan Corporation and MPM to facilitate implementation, address operational challenges and maintain regular engagement with Customs and industry stakeholders.

“However, achieving sustainable direct shipping services requires more than regulatory changes. It calls for coordinated efforts, clear implementation guidelines and strong commercial participation across the entire logistics chain,” it said.

It also called for clear written guidance from the relevant customs authorities regarding the scope of the new arrangements, documentation requirements, implementation procedures and the treatment of cargo already booked or in transit.

“Clear and consistent communication is essential to minimise uncertainty and ensure that shipping operators, freight forwarders and businesses can make the necessary logistical arrangements without unnecessary disruption,” it said.

MPM further proposed joint engagement sessions with shipping lines, shipping agents, freight forwarders, importers and exporters to assess cargo demand, secure commercial commitments and identify suitable vessel schedules to support regular direct shipping services to Labuan.

According to the company, sufficient cargo volumes and commercially viable shipping arrangements are essential to maintaining consistent vessel calls and ensuring the long-term sustainability of direct shipping operations.

“We remain committed to providing efficient, responsive and reliable terminal operations. We are prepared to assess our existing capacity, equipment and manpower requirements to accommodate additional cargo traffic while maintaining operational efficiency and safety,” it said.

The port operator also highlighted the need for greater transparency and competitiveness in logistics charges, stressing that improved coordination among service providers could help minimise avoidable costs, reduce delays and enhance overall supply chain efficiency.

It said coordinated stakeholder briefings involving the relevant authorities, including Customs where appropriate, would help ensure that the business community receives accurate and consistent information on implementation arrangements and available shipping services.

As an immediate measure, MPM proposed that LPA chair an early coordination meeting involving Labuan Corporation, Customs, MPM and relevant industry representatives to establish a joint action plan, determine responsibilities and identify key implementation priorities.

The company also recommended regular joint reviews of cargo volumes, vessel calls, terminal handling performance and stakeholder feedback to assess progress and support continuous improvements.

“We believe that through stronger cooperation, transparent communication and shared commitment, Labuan can develop a more resilient maritime logistics network that benefits businesses, consumers and the wider economy,” it added.

MPM expressed confidence that a coordinated approach between government authorities, port operators and the private sector would strengthen Labuan’s position as a competitive maritime and commercial hub while supporting its long-term economic development.

-- BERNAMA