Prime Minister Najib Razak should scrap plans to privatise the operations of Penang port to Syed Mokhtar’s Seaport Terminal Sdn Bhd, which already controls Johor Port and Port of Tanjung Pelepas.
There is no reason to privatise the Penang port, especially to a crony who already controls other ports and transport infrastructure, as well as other key strategic assets. The port should be handed to the the people of Penang and its operations come under their elected state government.
Early last year, the federal government issued ‘requests for proposals’ for the privatisation.
According to The Edge (25 June), four groups registered their interest:
- Dubai Portsworld
- International Container Terminal Services Inc
- Seaport Terminal and
- a private group led by businessman Siew Ka Wai
But then the Penang state government correctly gatecrashed the ‘party’ and requested that it be allowed to take over the port.
We don’t want what is happening now in Selangor – where a private water firm can effectively hold the state and its people to ransom – to happen in Penang.
Chua Soi Lek, during his debate with Guan Eng, complained about the poor performance of Penang port as the justification for privatisation. But whose people are managing the port now? The Edge reported that there are powerful vested interest groups, who enjoy cosy business contracts from the port – and they too are lobbying against the privatisation. The weekly cites a source as saying: “The whole port operates like a private enterprise and breaking the cabal is going to be harder than getting control over the port.” Who are those with vested interests in the port?
The state government, if it takes over, can revamp the management and plug the ‘leakages’. After all why is Penang port’s throughput per metre only 7363 freight weight tonnes/metre compared to Port of Singapore Authority’s 31,459FWT/m in 2011? Even PTP’s 26109FWT/m lags behind PSA’s.
The Edge added that under the deal, the government would receive RM100m from Sea Terminal. Sea Terminal would also assume Penang Port’s debt of RM1.3bn.
So what’s in it for Sea Terminal if it is willing to cough up so much money? Surely, it is a gold mine that has immense potential.
A few other points should be kept in mind:
Who is responsible for the siltation in the port that requires extensive periodic dredging that runs into hundreds of millions of ringgit?
What is the impact of land reclamation on the island and mainland? If private companies are responsible for the siltation in the northern channel, then they should foot the bill for the dredging and the dredging cost should NOT come out of public funds.
The extension of the North Butterworth Container Terminal all the way up the northern coastline of Seberang Perai – with plans for even further extensions – has affected the livelihood of fisher folks in Bagan Jermal and Bagan Ajam on the mainland as catches dwindle. No wonder the price of fish is rising!
To what extent have port activities polluted the sea water? And how has this affected our beaches? Who pays for the sea pollution and the impact on marine life? The public bears the environmentals cost while the port operators and other private firms reap the profits?
NO to privatisation of (port operating) profits and socialisation of (environmental) costs!
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Answer: 1) How come you compare car & port?? Car depreciate & port machinery also does, but the land values goes up..btw does the depreciation method is the same for car & port machinery (10 years only?) open the guidelines pls..so now who is thinking using knee??? Do last time NCB, KPC, Westport pay compensation when they bought the respective port and develop it??? “And this is why there has to be a returning of profits. (Don’t forget that Pg port is owned by the Fed Govt and profits didn’t go to the State coffers)” what a nonsense remarks..why should… Read more »
From my point of view, looking at current scenario PPSB like cruising at 60 KM/H not like PTP, Johor Port, Port Klang & Kuantan which already hitting 90 KM/H and soon will touch 110 KM/H…if the current trend is to be continue, then PPSB will be losing it’s attractiveness as other regional port like Belawan, Satun and slowly Lumut will put pressure to it’s premier regional port status..there’re a lot of improvements can be done to make it competetive…infact Port Klang used to be managed by PKA, but now under Northport & Westport it has thrive it’s business, the same… Read more »
“9) If Pg Govt want the port back, maybe they’ll have to pay back all the costs of developing it since all the fundings and grants given is from Federal Govt since pre independence till now. Are they willing to pay?”
Now …. would the Fed Govt return all the profits made since pre independence till now back to the Pg Govt?
If the port has to be privatised, Pg Govt should be given FIRST OPTION to acquire at the price that crony is supposed to pay.
How much was it ………… somewhere around RM165 million?
Hehe..i really want to laugh..that’s why i mentioned earlier use the head not knee..why should they give the profit just like that when there’re the one who run the business..since you say to return the profit, how about look at this scenario..’you run a business at my shop, get profit and paying shop rental to me, somehow i want you to sell the business to me together with the profit..is it FAIR??’ of course you’ll not sell together with profit rite??..what a silly remarks! last time LGE always crying for CAT, but now you are talking about FIRST OPTION…so if… Read more »
(1) You bought a new car, used it for 10 years and you want the next buyer to buy your old car at your original price? “Very smart”. Someone who thinks with the knee would buy. The one who thinks with the head may consider buying ONLY if you compensate him ……….. with what you need to pay to rent a car for the last 10 years if you don’t have a car. The new buyer would also consider how the net cost compares with current market price. And this is why there has to be a returning of profits.… Read more »
Hello, where did the federal government get the money from? From taxes, our natural resources etc. It is not from the politicians’ pockets.
Penang people pay taxes to the federal government, you know. So it is our money that was spent on the port so far.
I am against piratisation and centralisation, read my article why your idol surrender our rights to the federal at http://eusoon.blogspot.com/2011/06/water-deal-surrender-of-states-rights.html
This piratisation thing is wrong in the first place , nothing to argue! What do you sycophant want me to write. Nobody is arguing with me that it is not wrong.
DAP attempted a signature campaign, to date, how many signatures it has collected? A thousand? DAP boosted of winning in the coming election do not seen to be good, if you look at the number of signatures they collected. I also against port privatisation and piratisation. Such an important issue DAP can’t generate sizable signatures, yet they think that they are invincible. Incredible!
If only ………….. you could show the type of “initiative” you put in on hill slope development ………. towards this piratisation of Penang Port by BN/MCA ……………. but then ……..
Funny, when it comes to your vendetta against the Pen gov, you can write 20 posts a day, thousands of words (often repetitive). Cut and paste countless articles too.
Yet, with this port deal, you can’t do better than blame the DAP again?
Why? Your brain only works on one track at a time? Or maybe all your self proclaimed self righteousness is just a bunch of baloney.
You claim to be some born again Buddhist, social activists, pseudo intellect…etc after all. Why not now?
Hi everyone, Another modus operandi of UMNO Baru and BN is to appoint political appointees to PPC, MAS and govt-linked companies, then mismanaged, intentionally or otherwise, to cause leakages, etc, then salvage measures, including bail-outs and injecting assets, need to be taken by the Federal Govt, and after this, declaring to privatise such entities to their cronies. This time affording even more long-term stealing of Federal Govt assets to profit their cronies and themselves, while the socialising the bail-outs and injected assets to the people!! If this fails again, repeating the process to fast propel Malaysia into a Greece and… Read more »
Does anyone know who gave Penang Port to the Finance Ministry and why it was done in the first place? Was it under KTK or Chong Eu’s admin?
How could that be, give Penang Port away??? Ah Soon Kor, please find out as you are always capable. TQ!
Maybe Anil can provide the answer.
Yes, Mr Ong, some info and feedback would be welcome.
a concession contract between IMW (Integrated arine Works) and Minisrty of Finance to dredge all Malaysian Port for 15 years. IMW is 49% owned by Sea Terminal and Inai Kiara 51% Sea port terminal is Pelepas Port in Johor, which we all know is owned my Syed Moktar. Moktar also own 49% Inai Kiara..a dredging company in malaysia Few ports in Malaysia had an open tender for dredging work but was sued my IMW because the ports did not appoint IMW to dredge. The most reason was Samalaju Port in Sarawak. But Samalaju port won the case because it is… Read more »
Yes to free market privatisation, NO to cronyism PIRATISATION.
A crony of UMNO? Who is the chairman of Penang Port? Chua Soi Lek? UMNO is the master, what is MCA/GELAKAN/MIC to UMNO? Servants, to UMNO! Sycophants, all rotten to the very core? Do you expect MCA/GELAKAN/MIC to voice their disapprovals? Do you seriously do? After 54 years of “bodeking” do you think they will voice the interests of the Rakyat against their masters? Talk too much, ” tangkap”! You expect MCA/MIC/GELAKAN to speak for you? These sycophants are all for their own personal interests only? Even political interests comes second. MCA/GELAKAN/MIC has all become politikus, all that cares for… Read more »
First of all, a happy Ramdan to Ahmad Sobri and all the Muslims !
For the rest of us, we can use Ramadan for soul searching….
Agreed but will Fed. Gov. listen to us?
How can Penangites unite to say “NO”? Any suggestions, friends?
call on the penang people to put out a protest march to the bn /umno hq in penang and kl to show how the raayat are frustrated with those bn conies. and tell them them in th\n 13 ele the raayat will throw out all the bn/ and blood suckers out of the govt and make perkataan in power and make pk people to open up all the corruption files and recovered billion and billion they took . every malaysian raayat must now shun the tv news and newspaper who own by the co\ronies. and hae them shut down. i… Read more »
Penang Port belong to the people of Penang.
No privatization without permission of the people of Penang.
CSL the adulterer and pornstar better go to hell and dont ever step into Penang.
YOU ARE NOT WELCOME
CSL is put to helm Penang Port Commission, why do we need someone from MCA and Johor? Isn’t it obvious, it’s for a reason, to do damage to Penang’s Pakatan State Government?!!