KUCHING: Sarawak currently has the highest number of ships in Malaysia, with 2,827 ships registered under 1,036 shipowners, said Sarawak Transport Minister Datuk Seri Lee Kim Shin.

He said the reinstatement of the cabotage policy in the state since June this year, which aimed to protect and enhance the local industry, has significantly contributed to this milestone.

"Additionally, Sarawak plays a critical role in Malaysia's shipbuilding and ship repair industry, producing approximately 80 per cent of the country's new ships.

"With 68 of Malaysia's 100 shipyards located in Sarawak, this industry significantly contributes to the state economy and Malaysia as a whole and cabotage policy helps to protect this vital sector," he said in his winding-up speech at the State Legislative Assembly here today.

He said that following the reinstatement, his ministry held an engagement session with Sarawak stakeholders last August, resulting in a decision to form a special committee to coordinate maritime and logistics matters, address challenges and propose solutions.

Meanwhile, Lee said the Trans-Borneo Railway feasibility study, which is expected to be completed in a year, will begin upon the issuance of the letter of award by the (federal) Ministry of Transport (MOT).

"The MOT has tendered this feasibility study in March 2024 and is currently in the process of tender evaluations," he said.

Lee said his ministry is part of the technical committee overseeing the feasibility study on factors such as route and station options, cost estimates, sustainability, environmental impacts, and socio-economic benefits for Sarawak, Sabah, Kalimantan, and Brunei.

Previously, Transport Minister Anthony Loke said the feasibility study on the proposed railway project linking Sabah and Sarawak to Indonesia will be completed in August 2025.