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Update Penang govt mulls ferry service takeover
Politics & Government 2009
Written by Regina William   
Monday, 08 June 2009 10:10
GEORGE TOWN: The Penang state government is keen to take over the ferry services plying between Butterworth and Penang island even though it has been a losing venture for Penang Port Sdn Bhd (PPSB) all these years.

Chief Minister Lim Guan Eng said the state government would suggest that the Penang Island Municipal Council (MPPP) take over the loss-making ferry operations, which incurred RM21 million in losses in 2008.

Recently, Penang Port Commission (PPC) chairman Tan Cheng Liang had said that the PPSB was expected to hand over the ferry operations to the federal government due to its continuous losses since taking over the ferry services from the PPC in 1994.

PPSB, which was privatised then, signed a 30-year concession agreement with the PPC in 1995 to operate the ferry.

"MPPP will seek a meeting with Tan soon to discuss the matter but we have yet to make a formal application to the Transport ministry," Lim said.

"The ferry services are iconic, historical and important for Penang since starting operations in 1894 and we do not want to see the services being stopped due to its losses.

"The state government is prepared to take the risks of losses and challenges by taking over the services minus the existing liabilities and we believe we can do better.

"We are offering to take over the services and it is up to the ministry to decide.

"PPSB can then concentrate on its much more profitable ventures instead of being saddled with this liability," Lim said after witnessing the swear-in of the new MPPP president, Tan Cheng Chui.

Lim said there was room for the ferry services to improve and said the state government was prepared to take over the services despite the challenges, burden and risks.

"The services cannot continue like this as it will stagnate and die and may not even be continued," he added.

Meanwhile in his speech, Lim said Penang was also mulling declaring July 7 a public holiday from 2010 to commemorate Penang's listing as a Unesco World Heritage site.

He said the state government felt the day should be celebrated annually to mark Penang's status and also to emphasise the state government's commitment towards preserving, protecting and promoting Penang's heritage.

Lim said the decision would also hinge on the outcome of the Unesco meeting in Sevilla, Spain on the status of the listing, following the recent brouhaha about four projects in Penang which were said to contravene the 18-metre ruling outlined in the dossier sent to Unesco.
  Last Updated on Monday, 08 June 2009 16:20

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