KOTA KINABALU: Cargo vessel, Panstar V PS001S arrived at the port here on its maiden voyage from Hong Kong, marking the first step towards making the port here a transhipment hub in the BIMP-EAGA region.

Owned by Destiny Merchant Marine (M) Sdn Bhd (DMM), Panstar V PS001S would be one of two to ply the' Hong Kong-Kota Kinabalu route every week under a special deal with the Sabah Ports Sdn Bhd (SPSB).

The other vessel is MV Long Tian.

Under the deal it provides a berthing window, every Monday morning, for DMM with 'special promotional rates, said SPSB Chief Operating officer Ramli Abu Samah.

"This means we will prepare for the arrival of DMM's vessels at the specific day and time through this arrangement and to us this is an advancement towards turning the port here into a hub," he said.

The direct arrival of the vessels, Panstar and Long Tian, which would take turns plying the Hong Kong-Kota Kinabalu route to meet the schedule, would open up sabah to the Far East market, he said.

"This marks a new chapter for the shipping industry in the State as it will be widening the horizons beyond Malaysia's shores," he said.

It also helps SPSB to build up its bases before it shifts operations from Kota Kinabalu port to the new Sepngar Port, which would open in the first quarter of next year.

"The new port will be a dedicated container port with better equipment and locality unlike now where all our ports are multifunctional," he said.

DMM Chief Executive Officer Patrick Lau said the company would likely transport cargo at an average of 150 TEUs (twenty-foot container equivalent units) per week, mostly goods from China.

"To us Kota Kinabalu is a strategic point as a transhipment hub because it is easier to connect to ports in southern Philippines, Brunei and Indonesia," he said.

From Kota Kinabalu DMM would also be connecting its goods through feeder vessels linking Peninsular Malaysia such as Port Klang and Pasir Gudang as well as Sarawak through Kuching and Bintulu.

Lau disclosed that on the return journey the vessels would mostly be transporting timber products to the Far East.

The Bintulu-based company has been in the cargo shipping business for 12 years and started its container business last year with only one vessel to five vessels at present.