GEORGE TOWN, June 12 — The Penang state government said it fully supported Prasarana Malaysia Bhd taking over the state’s ferry services from Penang Port Sdn Bhd (PPSB).

Penang Chief Minister Lim Guan Eng believed the federal government-owned public transport company, which operates Rapid Penang, was competent and professional enough to take over the iconic ferry service.

"When the Prasarana managing director paid me a courtesy visit a few months ago, he has reassured us that the number of ferry trips and the number of ferries will be maintained," he told a press conference at his office today.

Lim hoped Prasarana would maintain the same standards in running the ferry service as with the Rapid Penang bus service.

He said Prasarana planned to introduce modern catamarans while maintaining the current ferry service to increase the number of passengers.

"We are glad that they will keep running the old ferries that are the icon of Penang and an important tourism product for Penang," he said.

As to why Penang's offer to take over the ferry service did not come to fruition, Lim said the takeover discussions fell through because the state could not get assurances from the Penang Port Commission (PPC) that it would not interfere in the ferry operations if the state were to take over.

"Now that it is Prasarana, which is under the federal government, we are sure that it will have more weight and PPC will not interfere in the ferry service operations," he said.

He believed Prasarana will do its job professionally as per its track record in operating Rapid Penang buses efficiently.

It was reported that Prasarana will be taking over the ferry services from PPSB from next month onwards.

PPSB, which was privatised to Seaport Terminal Sdn Bhd, has been reporting annual losses of over RM21 million.

The Penang state government had been in discussions with the Transport Ministry to take over the ferry services.

The state had submitted proposals that including asking for 30 additional licenses to operate water taxies.

The ferry operation is one of Penang's icons as it is the first link between the island and the mainland and the oldest ferry service in the country that was established in 1920.

When contacted, PPC chairman Datuk Tan Teik Cheng said the ferry takeover by Prasarana was a result of extensive discussions between PPSB and the Finance Ministry.

"The takeover will be effective from July 1 onwards," he said.