It appears that the federal government is going ahead with a RM50 million plan to introduce water taxis and build more jetties in Penang and mainland.

Najib approved the conceptual plan in July. A month earlier, this blog had suggested that the Penang Port look into emulating Bangkok’s river buses along the Chao Phraya River.

But the devil is in the details. Now they are talking about allowing private firms to run the water taxi service. In the first phase, they want to target foreign tourists. The public would be targeted only in phase three. This is so unlike the low-cost river buses in Bangkok, where the passengers are mainly locals and the fares are low (apart from the separate cruise boats catering for the tourists). Public transport works best when the fares are affordable (even if it means government subsidies for an essential service) – but you can’t have affordable fares if you have private firms hoping to make huge profits.

Meanwhile, all the various parties appear to be doing their own thing. You have the bridge firms (federal) working on the second bridge, Penang Port working on the ferries and water taxis, Rapid Penang (federal) upgrading the bus service, the Penang state government reportedly looking into monorail, a proposal to revive the Penang Outer Ring Road on the cards, the aerorail proposal, and the new Penang Transport Council probably not being consulted on some of these projects. What a jolly rojak!

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Now this is alarming: not only is the 18km tolled Penang Outer Ring Road back on the cards again, the concessionaire is reportedly seeking to reclaim 61ha of land off Gurney Drive and 142ha at Middle Bank, close to the Weld Quay jetties.

When it comes to taking a stand on Porr, is there much to separate the BN from the Pakatan state government?

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This is the latest status of all the mega projects in Penang. These remarks are based on the Prime Minister’s reply to a question raised by the Penang Chief Minister in Parliament on 20 August 2008.

What the first three projects have in common is that the financial models were all messed up.

My comments and recommendations, for what they are worth, are in italics.

Second Penang Bridge: Federal government now studying the financial model put forward by Syarikat Jambatan Kedua Pulau Pinang Sdn Bhd, a wholly owned federal government subsidiary, based on a new bridge model. (I guess they messed up with the earlier financial model.) It is also drafting terms and conditions of a concession agreement before starting negotiations with the company. (Sounds like right hand going to negotiate with left hand.)

To cut a long story short: Still under study.

My recommendation: The cost has nearly doubled to RM5 billion. Turn it into a shorter rail link at a different location and allow the Penang State Government to hold a majority stake in the company.

Penang Outer Ring Road (Porr): Supposed to have been built under build-operate-transfer privatisation model. But not feasible without strong federal government support or high tolls. Federal government now facing financial constraints so unable to use development expenditure under the Five-Year Malaysia Plan to implement it. But project may be considered if private companies are interested.

To cut a long story short: No federal government funding.

My recommendation: Scrap it because of environmental concerns and future congestion. Move away from private vehicle ownership and introduce an integrated public transport system.

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