Sarawak Ports Authority assumes regulatory management

The The Sarawak Ports Authority will be responsible for regulatory control over all existing port authorities in Sarawak.

Deputy Prime Minister Datuk Amar Douglas Ugga Embas said the authority will be established with the coming into force of the Sarawak Ports Authority Bill 2024.

“Regulatory control over all ports in Sarawak will facilitate the corporatization and eventual privatization of the operations of ports and port businesses and ensure that our ports are operated as commercial entities open to the interests of bona fide businesses. “governance and financial discipline,” he said while introducing the bill in the House of Representatives in August, on Tuesday (May 7). Told.

Regarding the handover of the management and operations of the port, Mr Ugah said this would be carried out in three stages. Incorporation stage. and the privatization stage.

He explained that in the interim, the existing Port Authority will not be dissolved yet and will continue to operate the port.

“(This) will be subject to the terms and conditions of the license issued by the Sarawak Ports Authority until a dissolution order is issued under Section 5,” he added.

Mr. Ugah said that if a dissolution date is specified for the existing port authority during the incorporation stage, the operational functions of the existing port authority will be assumed by the successor company.

“The successor company may be a company wholly owned by the Authority or the National Treasurer, or any other company established under the Companies Law 2016 as specified by order of the Majlis Meshyalat Kelajan Negeri (MMKN) there is.

“Prior to dissolution, the existing port authority shall surrender its lands to the Sarawak State Government under Section 45 of the Land Act. It could be reassigned to either the Port Authority or a successor company,” he explained.

He added that the Sarawak Ports Authority may issue a license to the successor company and carry out all port operations in accordance with the terms of the license.

“All officers and employees of the existing Port Authority shall be able to accept employment with the Sarawak Ports Authority or any successor company on terms and conditions as favorable as those enjoyed under the existing Port Authority. ”

Mr Ugah said that during the privatization stage, the bill would allow the Sarawak Ports Authority (with MMKN’s approval) to license new entities or their successors involving the private sector and investors. It will allow port operations and operations to be privatized, he said. A company that has admitted new shareholders as investors in the successor company.

“New legal entities must submit an application with an operational and management plan as required by the new law.

“Under Article 9(3) of the Bill, the officers and employees of the successor company may choose whether to remain with the successor company or join a new entity authorized to take over the operations and port operations of the incorporated successor company. You can choose.

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

He said the timing and strategy of this privatization phase will be determined by the regulatory and licensing authority Sarawak Ports Authority.

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