POTENTIAL FLEET MAKEOVER
PENANG’s iconic but loss-making ferry service may get a boost once takeover negotiations between Penang Port Sdn Bhd and Prasarana Malaysia Bhd are completed, with deployment of new vessels one of the issues being discussed.
PENANG’s iconic but lossmaking ferry service may get a fleet makeover once takeover talks between Penang Port Sdn Bhd and Prasarana Malaysia Bhd are completed.
Penang Port Commission (PPC) chairman Datuk Tan Teik Cheng said the deployment of new ferries was being considered in the negotiations.
“This will be carried out by the new operator. All of this will be discussed after Prasarana’s acquisition plan is completed,” he said without disclosing any figure for the possible takeover.
Last November, Prasarana reportedly expressed interest in buying the ferry operation that links Penang island to Butterworth.
In August last year, MMC Corp Bhd announced that it was acquiring 35.99 million shares, or a 49 per cent stake, in Penang Port from Seaport Terminal (Johore) Sdn Bhd for RM200 million cash, but with the assumption that the ferry business would not be part of the deal.
The ferry service had reportedly been a stumbling block to MMC Corp’s initial public offering plan for its port operations. However, doing away with the ferry service is a no-no as it is regarded as one of Penang’s most famous heritage.
Tan’s remarks came a day after MMC announced that its unit MMC Port Holdings Sdn Bhd had acquired the remaining 51 per cent stake in Penang Port for RM220 million.
In a statement to Bursa Malaysia, the group said MMC Port had entered into a conditional agreement with Seaport Terminal (Johore) to buy the remaining 37.46 million Penang Port shares.
MMC group also operates three other major ports in Peninsular Malaysia — Port of Tanjung Pelepas, Johor Port, and Northport in Port Klang.
Penang Port, the oldest in Malaysia, serves as the main gateway for shippers in the northern states of Peninsular Malaysia as well as the southern provinces of Thailand.
On Penang Port and Royal Caribbean Cruises Ltd partnership to expand a cruise terminal, PPC was waiting for more detailed information from the port operator, said Tan after the launch of a new system by depot and haulier solution company CargoMove, here, yesterday.
The expanded terminal will be managed by both parties, with majority stake held by Penang Port.
Meanwhile, CargoMove’s online system will address problems faced by hauliers and depots.
Its chief executive officer Lee Kiat Hean said it was a solution to improve the efficiency of container movements to and from depots.