Penang Ferry Service To Be Separate Entity From Oct 1

PENANG, Sept 24 (Bernama) -- The Penang ferry service will be separated as a subsidiary of Penang Port Sdn Bhd (PPSB) from Oct 1 as part of a restructuring plan to list PPSB on Bursa Malaysia.

PPSB Managing Director Datuk Ahmad Ibni Hajar said the plan had received the blessing of the Economic Planning Unit in the Prime Minister's Department, Finance and Transport Ministries.

" The move to separate the ferry service from PPSB was instructed by the EPU. The EPU wanted two separate entities -- PPSB and ferry service. Both are different operations," he told reporters.

Ahmad however said PPSB will work with Rapid Penang Sdn Bhd, a wholly-owned subsidiary of RAPID KL, to use the ferry services to transport Rapid Penang buses with passengers to the mainland.

He said PPSB will hold talks with Rapid Penang for its buses to use the ferry service to destinations on the mainland and vice-versa. "

Currently, there is only 25 per cent passenger load on our ferries. We're looking into ways to cut wastage.

" We've been making losses since 2002 in operating the ferry service," he added.

Last year, the ferry service incurred its worst ever losses following fuel price hike, chalking up RM24.6 million in losses, almost double of the RM14.4 million losses suffered in 2007.

PPSB has eight ferries plying the Penang Channel between the Raja Tun Uda Ferry Terminal in Butterworth and Sultan Abdul Halim Ferry Terminal on the island.

-- BERNAMA