Sarawak Ports Authority to assume regulatory control

THE Sarawak Ports Authority is set to assume regulatory control over all existing port authorities in Sarawak.

Deputy Premier Datuk Amar Douglas Uggah Embas said the authority will be established upon the coming into force of the Sarawak Ports Authority Bill 2024.

“The regulatory control over all ports in Sarawak will be exercised through a licensing regime provided by this Ordinance that would facilitate the corporatisation and eventual privatisation of the operations of the port and port undertakings to enable our ports to be operated as commercial entities embracing good corporate governance and financial discipline,” he said when tabling the Bill at the august house on Tuesday (May 7).

In respect of the taking over of the management and operation of the ports, Uggah said this will be implemented in three phases, namely the interim phase; the corporatisation phase; and the privatisation phase.

He explained during the interim phase, the existing Port Authorities, which would not be dissolved yet, will continue to be in existence and undertake the operation of the ports.

“(This is) subject to the terms and conditions of a licence issued to them by Sarawak Ports Authority, until an Order is made under Clause 5 for their dissolution,” he added.

Uggah said under the corporatisation phase, when a date for dissolution of an existing port authority has been appointed, the operational function of such existing port authority will be performed by a successor company.

“The successor company will be either wholly owned by the Authority or by the State Financial Secretary or it may be any other company incorporated under the Companies Act 2016 named in the Order made by Majlis Mesyuarat Kerajaan Negeri (MMKN).

“Before the dissolution, the existing port authorities shall surrender their lands to the Sarawak government under Section 45 of the Land Code. These lands may, at the discretion of the Sarawak government, be re-alienated either to the Sarawak Ports Authority or to the successor company under Section 15A of the Land Code,” he explained.

He added the Sarawak Ports Authority may then issue a licence to the successor company to undertake all port undertakings subject to the terms and conditions of the licence.

“All officers and employees of the existing port authorities shall be accepted into the employment of Sarawak Ports Authority or a successor company on terms and conditions no less favourable than what they are enjoying under the existing port authorities.”

During the privatisation phase, Uggah said the Bill, through its licensing provisions, will enable Sarawak Ports Authority (with the approval of MMKN) to privatise port undertakings and operation by licensing either a new entity which has private sector or investor involvement, or a successor company which has admitted new shareholders as investors in the successor company.

“The new entity will have to submit an application together with an operational and management plan as required under the new law.

“Under clause 9(3) of the Bill, officers and employees of the successor company may opt to either remain with the successor company or join the new entity licensed to take over the operation and port undertakings of the corporatised successor company.

“A licensed port operator is deemed an independent port operator and not an agent of the Authority.”

He said the timing and strategy for this privatisation phase will be determined by Sarawak Ports Authority as the regulator and licensing authority.