Media statement by Lim Guan Eng in Komtar, George Town on Sunday, 29^th July 2012: 

Will Seaport Terminal (Johor) Sdn Bhd make public the terms of the privatisation of Penang Port? 

Will Seaport Terminal (Johor) Sdn Bhd or Seaport stop being secretive but make public the terms of the privatisation of Penang Port to reassure the public how this privatisation benefits the future interest of Penang and that this is not another piratisation of a public good for private profit by a BN crony? Communications infrastructure such as ports, airports public transportation are public goods similar to water services, electricity supply, health and education.

Such public goods must have strong government oversight to ensure that public interest is given priority over private profits. Failure to do so would see the private companies earning exorbitant profits at the expense of an efficient, reliable and affordable service given to the public.

Without strong government oversight of such public goods, privatisation invariably leads to piratisation where only the profits are privatisated and any losses incurred socialised to be borne by the public. There is grave concern that the privatisation of the Penang Port without consultation with the state government, local stakeholders and the people of Penang generally is another piratisation exercise.

Worse there are doubts whether the tender is open and competitive as only those invited by the Federal government to bid were entertained. Even the Penang state government’s proposed bid was not even entertained despite many letters sent to the Prime Minister Datuk Seri Najib Tun Razak. Until now no details have emerged from the award of Penang Port to Seaport, whose terms for the takeover remained shrouded in secrecy and even mystery.

Seaport’s recent public declaration that they do not intend to relegate Penang Port to a feeder port nor have plans to transfer Penang Port’s cranes to Pelabuhan Tanjung Pelepas (PTP) in Johor as alleged will not allay concerns without any full disclosure of facts and figures of their future plans and amounts to be invested to develop Penang Port. Further Tan Sri Syed Mokhtar Al-Bukhary who owns Seaport and operates two ports in Johor ? the Port of Tanjung Pelepas (PTP) and Pasir Gudang port, has not responded to criticisms that the takeover of Penang Port is creating a monopoly that is against the Anti-Competition Act 2010 and an anti-trust violation.

Seaport’s assurances contradict MCA President and Penang Port Commission Chair Datuk Seri Dr Chua Soi Lek’s previous puiblic assertions that Penang Port has to accept the reality of being relegated to a feeder port. He even said that Penang Port earned only RM180,000 in profit last year with huge debts of RM1.3 billion as compared to Seaport Terminal’s Johor Port which made RM185 million.

What assurances will the public have that Seaport will not relegate Penang Port to a feeder port given that Port of Tanjung Pelepas and Pasir Gudang is performing so much better than Penang Port? Tanjung Pelepas Port which started operations in 1999 handles more than six million TEUs a year, five times more than Penang Port! Penang also saw cargo volumes growing only 5.8 per cent a year between 1995 and 2009 compared with Port Klang which grew 14.2 per cent annually.

Failure to deepen the navigation channel will torpedo any efforts to revive Penang Port to its former status of being a regional commercial port. For that reason the refusal by either the Federal government or Seaport to state when the RM353 million project to dredge the navigation channel near the Penang Port will be implemented or whether only a smaller token sum be spent for dredging purposes will certainly deepen suspicion that Penang Port will indeed be reduced to a mere feeder port.

*Lim Guan Eng, Penang Chief Minister