GEORGE TOWN: The cost of operating the ferry service in Penang exceeds the ticket revenue, resulting in an annual loss of approximately RM14 million, the state legislative assembly was told today.
Infrastructure, Transport, and Digital Committee chairman Zairil Khir Johari said that despite the losses, Penang Port Sdn Bhd (PPSB) continues to implement ongoing improvements and upgrades to ensure the best ferry service for users.
“To give a rough idea, the ticket revenue for the ferry service only covers about 35 per cent of the operational costs,” he said when replying to a question from Teh Lai Heng (PH-Komtar).
Zairil explained that one of the factors contributing to the losses is the high cost of diesel, which is purchased at market prices, and the lack of a diesel subsidy for the ferry service, a key public service in Penang.
He also clarified that the cost of annual inspections and maintenance to ensure the safety of the ferries, along with insurance premiums exceeding RM2 million annually for each ferry, also contributed to the operational losses.
Regarding ferry usage statistics from January to October 2024, Zairil said that 1.76 million pedestrian passengers and 615,879 two-wheeled vehicles had used the ferry service in Penang.
