GEORGE TOWN – The new ferry services in Penang have incurred an estimated amount of RM 14 million in losses per year, the state assembly was told today.
State Infrastructure, Transport and Digital exco Zairil Khir Johari (Tg Bunga-PH) said that according to financial records of Penang Port Sdn Bhd (PPSB), the service costs of the vessels exceeded the profit of ticket sales.
He also said ferry ticket sales could only cover around 35% of the total operational expenses.
“However, PPSB continues to carry out renewal and improvement works to provide the best ferry services to the consumers.
“Among the factors behind the losses incurred is the high cost of diesel fuel, as it is bought at market price and no subsidy is given for the ferry service despite being one of the main public services in the state.
“(Additionally), the costs of annual inspection, mandatory maintenance works to ensure the safety of ferry (vessels) in operation and service insurance exceed RM2 million per vessel per annum,” said the executive councillor.
Zairil was responding to Teh Lai Heng (Komtar-PH) who asked whether the ferry service is incurring losses and the reasons behind the losses.
The four ferries commenced operations at Raja Tun Uda Ferry Terminal on August 7 last year.
The vessels, namely Teluk Bahang, Teluk Kampi, Teluk Duyung and Teluk Kumbar, operate 68 two-way daily trips every 20 minutes during peak hours and 30 minutes during non-peak hours.
In December last year, the Star reported PPSB’s chief executive officer Datuk V. Sasedharan said that operators would use between one and three ferries at any point and always have a spare vessel to use.
Two or three vessels would be used during peak hours, he said, as PPSB has an extra vessel that has been used for the Penang Bridge Sunset Cruise. – November 25, 2024