BANDAR SERI BEGAWAN – Brunei needs to further study the possibility of its involvement in a proposed rail network connecting Borneo, the Minister of Transport and Infocommunications (MTIC) said at the Legislative Council on Tuesday.
Pg Dato Shamhary Pg Dato Hj Mustapha said his ministry was aware of Malaysia’s plan to conduct a feasibility study for a proposed railway linking Sabah and Sarawak, but has yet to receive any proposals that include a feasibility study on the Trans-Borneo Railway.
Malaysian media Tuesday reported that a feasibility study on the Trans-Borneo Railway is slated to start mid-2025 and would be completed in 2026.
The minister said Brunei and Malaysia held discussions on the rail network during a bilateral meeting last November.
He added that the ministry remains committed to monitoring progress and collaborating with relevant parties, particularly on matters related to domestic and cross-border connectivity planning.
Last year, MTIC refuted reports of a Brunei-based company building a $70 million rail network that would link the sultanate with the Malaysian states of Sabah and Sarawak and Kalimantan in Indonesia.
Air transport sees positive growth
Noting that Brunei aims to become a regional air hub, Pg Dato Shamhary said the Brunei International Airport saw positive growth in 2024 as total passenger traffic reached 1.464 million. The airport has the capacity to handle up to 3 million passengers.
He added that the air transport sector made significant gains with 18.9% growth, contributing to Brunei’s economic growth in 2024.
This growth was attributed to the gradual recovery of the aviation sector and expansion of the shipping sector as a result of increased export activities and growth of downstream industries.
The minister said a key part of efforts to position Brunei as a regional air hub is the expansion of its air routes.
Brunei has signed 40 bilateral air services agreements, Pg Dato Shamhary said, adding that this would further enhance connectivity, open up market access, and increase flight frequencies.
The Department of Civil Aviation also encourages airlines to operate in the country by obtaining a foreign air operator certificate, with incentives such as aeronautical service charges. Currently, six scheduled airlines operate at Brunei International Airport, he added.
Muara Port expansion to boost trade
To position Brunei as a hub for trade, services and logistics, the minister said the expansion of Muara Port will increase the frequency and type of goods transported.
The expansion of Muara Port includes the construction of a new Muara container terminal that will double the port’s capacity to 500,000 twenty-foot equivalent units (TEUs) a year. The container terminal is expected to be completed by the second quarter of 2027.
A Port Trade Zone spanning 3.62 hectares will also be built to improve import, production and export processes for businesses operating at the port.
He further said construction of the Integrated Marine Maintenance and Decommissioning Yard on Pulau Muara Besar is underway, offering various services related to the shipping industry.
Meanwhile, the Maritime Single Window initiative is set to launch later this month. The platform will integrate all shipping and port activities in Brunei into a unified digital system.