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.

According to BERNAMA News Agency, Infrastructure, Transport, and Digital Committee chairman Zairil Khir Johari stated that despite the losses, Penang Port Sdn Bhd (PPSB) continues to implement ongoing improvements and upgrades to ensure the best ferry service for users. Zairil highlighted that the ticket revenue for the ferry service only covers about 35 percent of the operational costs.

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 mentioned that the annual inspections and maintenance costs, along with insurance premiums exceeding RM2 million annually for each ferry, further contribute to the operational losses.

Regarding ferry usag
e statistics from January to October 2024, Zairil noted that 1.76 million pedestrian passengers and 615,879 two-wheeled vehicles had used the ferry service in Penang.