Penang port: They want us to take the losses while they keep the profits

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As usual, in any impending privatisation exercise, they only want the profitable bits, while the loss-making or difficult bits remain for the public to bear.

In the case of Penang port, Penang Port Sdn Bhd wants to surrender the ferry services and other loss-making bits while keeping the potentially lucrative port.

PPSB only wants to hand over the ferries to the federal government (see this Insider report) but it wants to keep the port.

By right, both the port and the ferries should fall under the state government. Yes, the ferries can be made to run more efficiently, but as a form of public transport, the goal should not be to maximise profit but to promote a sustainable transport mode.

We can do without the yacht marina, which would be a waste of public funds. Let the marina be a private initiative if it is so feasible.

And the port should come under the state government. As for the dredging, the Penang state government should ask serious questions about the RM355m price tag rather than just accepting it unquestioningly. Whose company is the real beneficiary of the dredging work? And how do we verify the volume that the company claims it will dredge? Federal government funds are also our money, and so any large payment for dredging must be independently audited.

The Chief Minister said today:

The Penang State Government Is Willing To Help Out Penang Port Sdn Bhd (PPSB) From Sustaining Yearly Losses Of More Than RM18 Million By Taking Over Tanjung City Marina, Swettenham Pier And The Ferry Services.

The Penang state government is willing to help out Penang Port Sdn Bhd (PPSB) from sustaining yearly losses of more than RM18 Million by taking over Tanjung City Marina, Swettenham Pier and the ferry services. PPSB managing director Datuk Ahmad Ibnihajar had confirmed that the Transport Ministry and Penang Port Commission(PPC), and not PPSB, was to blame for the failed RM43 million Tanjung City marina project, which fell into disrepair following a storm in 2009.

Ahmad said the failed marina was due to bad design and PPSB had in 2006 told PPC that the design was faulty in 2006. Clearly the Transport Ministry and PPC must bear full responsibility for mishandling the design, construction as well as failing to maintain the Tanjung city marina from 2006 until now when the entire marina has sunk to the bottom of the sea.

All those involved in the PPC and Transport Ministry from this period 2006-2012 should respond to Ahmad’s expose that the design fault in the Tanjung City Marina, was doomed to fail right from the very beginning. A full explanation must be given on why the PPC and Transport Ministry wasted RM43 million in public funds to implement a doomed to fail project and whether there are any more of doomed to fail projects.

The next public concern is whether the important Swettenham Pier is also one of those projects as it serves a critical link in serving cruise ships that cater to growing number of foreign tourists. The PPC and Transport Ministry’s poor management has caused a complete loss of public confidence. The state government is willing to take over and is confident of turning around the Swettenham Pier, Tanjung City Marina and the ferry services. Even the ferry services can be well run by engaging professionals with expertise as was done in the past.

The state government would also press the Federal government to fulfil its obligations as operator of Penang Port by immediately undertaking the RM355 million project of deepening of the north channel from 11 meters to 15 meters. Deepening the channel is necessary to handle bigger container ships to ensure sustainable revenue growth, which was only RM329 million last year and a slight increase this year, which is low for a significant port like Penang serving one of the most dynamic manufacturing clusters in the world.

LIM GUAN ENG

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sharon
sharon
22 Dec 2012 1.26pm

tunglang

read somewhere that you are courted by MCA Penang to set up the Penang street Food Museum. Is it true?

is this museum a good bit that MCA wants in Penang to lure voters?

tunglang
tunglang
22 Dec 2012 7.37pm
Reply to  sharon

Penang Street Food Museum was my pet project to bring about recognition of Penang Ori-Maestros (food sifus from diverse Asian cultures) who for generations have contributed to the state tourism potentials since the late 70s. Thanks to Anil’s blog, the flurry of heated & humorous discussions in 2011 has rekindled my long time passion for Penang food tourism. Still, my sincere apology for my overt-passionate verbosity for all things street hawker food at the expense of slippery-cleanliness food courts, Kimmy Garish, Soul Garden & SingLand hawker wannabes. In fact, food tourism was proposed in January, 1995 to PDC’s Tourism in… Read more »

kris
kris
26 Dec 2012 3.17pm
Reply to  tunglang

Like this from BN also can make tunglang syiok sendiri?

tunglang
tunglang
26 Dec 2012 9.38pm
Reply to  tunglang

Kris, I beg to differ from what you suspected ‘cheaply’. Can’t blame you b’cos you have no intimate idea of how much time & effort was put into this street food museum proposal: the research, the strategic branding & planning & the recce of 3 places, the initial brief spoken about with Danny Law, brief sent to State Museum (Macalister Road), brief proposed to MPPP, a more thorough proposal shown to George Town World Heritage Incorporated & Think City. Whoever shares my initiative is welcomed investor of my proposal, which is not just for one-sided political leaning entities. This street… Read more »

Kevin
Kevin
22 Dec 2012 12.59pm

It may be a blessing in disguise. The state govt is willing to take over the loss-making ferry service, tanjung city marina and swettenham pier because they know it has the potential to make money and at the same time be used to promote tourism in Pg. Just because PPSB is losing money doesn’t mean it won’t do well after the state govt takes over. Right now it could be that mismanagement and inefficiency is creating the losses. MPSP was running a deficit budget every year and was close to being bankrupt but they managed to turn it around in… Read more »

RaNa Rajan
22 Dec 2012 8.13am

WHAT HAD BEEN THE LATE GERAKAN STATE GOVERNMENT DOING WHEN PPSB BEGAN TO EXPERIENCE LOSSES. I BELIEVE THAT THEY WERE ENJOING THE COMPANY OF UMNO AND MCA IN BN, DARING NOT TO MAKE NOISE. GERAKAN HAD GROSSLY LET DOWN THE PEOPLE OF PENANG. LUCKILY GERAKAN IS DEAD NOW FOR THE BENEFIT OF THE PEOPLE OF PENANG.

tunglang
tunglang
22 Dec 2012 1.20am

(Street) Food for thought: Why not turn the Tanjung City Marina into a Street Food Museum? And turn part of Swettenham Pier into a Street Hawker Cuisine Paradise. Can be a private initiative museum to salivate hungry tourists landing on Penang Island from cruise ships. Plus a timeless slow tram ride or beca ride to innercity Ori-Maestro hot spots for a food binge of unforgettable gastronomical + heritage ambience experience in Little India, Carnarvon/Kimberley/Chulia Street enclaves & Penang Road-Macalister-Burmah Road axis. Previous recce-ed state-owned potential venues: Town Hall’s 1st floor State Museum @ Macalister Road It’s not the end of… Read more »

Gerakan K
Gerakan K
22 Dec 2012 12.41am

Complaining again ??? You should be happy that the world remains intact and still functioning ~

Yang
Yang
22 Dec 2012 9.33am
Reply to  Gerakan K

We would be happy if corruption, police brutality, lies and deceits, scandal that siphoned off the rakyat, cheating etc etc are wipe off not just in Malaysia but the world. How can one be happy if such things can still be condoned by the head of the govt here.

mike lobo
mike lobo
21 Dec 2012 8.25pm

Time to give the lucrative bits to the orang asli and the non lucrative bits to (those) who steal from their own pockets anyway eh.

sallangtioman
sallangtioman
21 Dec 2012 7.42pm

Pakatan take over Putrajaya, and no more of such problems.
4 months to go.

Casey
Casey
21 Dec 2012 6.39pm

No need to say much when any project that involves MCA ministers, especially its adulterous President. Sai Hei. (Waste my breath only).

… easy money and easy gain…

mark
mark
21 Dec 2012 5.41pm

So far,what has Chua Soi Lek as chairman of PPC done to look into this matter. Is it just to warm the seat and receiving his buta allowances. The Transport minister is also from MCA. Don’t tell me they can’t see the problem? Or are they trying to sabotage the state govt which is run by the opposition party?

Yang
Yang
21 Dec 2012 4.06pm

Yes, Barang Naik UMNO and their sycophants will always ensure that their cronies get the most profitable private and public entity.