PENANG today cried foul over the sale of Penang Port Sdn Bhd by Seaport Terminal to MMC Corporation, which made Seaport a hefty RM210 million in profit despite it not fulfilling conditions of ownership before.

Chief Minister Lim Guan Eng said Seaport Terminal was supposed to see to the capital dredging to deepen the North Channel and the improvement of the ferry services but this was not done.

“Why have they not enforced the requirement to implement the RM353 million capital dredging to deepen the channel from 11m to 15m? Why is that not done?” Lim said in a press conference today.

The deepening of the North Channel was crucial for the port, as it would enable the port to receive larger cargo vessels. The present depth can accommodate vessels of 4,000 TEUs (20-foot equivalent units) to 5,000 TEUs.

Lim also demanded the ministry to explain why the ferry services could not be improved after the Seaport takeover.

“When they bought over Penang Port, they were also supposed to run the ferry services well. They have not managed to do that.

“They lost RM20 million a year, and now the services are to be taken over by federal agency Prasarana for RM1 without having to pay debts,” he said.

Penang Port used to belong to the federal government until it was sold to Seaport Terminal for RM170 million in a “restricted tender” about three years ago.

The Edge today reported that Seaport Terminal had sold Penang Port to MMC for a price of RM420 million.

Seaport is also MMC’s largest shareholder, with 51.75% control in the public-listed company.

Lim said according to a report in The Star, Seaport owner tycoon Syed Mokhtar Albukhary made RM210 million from the sale.

“Just flip and make so much profit. Why couldn’t the federal government make this RM210 million itself?

“I urge Transport Minister Liow Tiong Lai to explain why a private company was allowed to make money, which the federal government could have earned itself.

“They had no open competitive tender. It was also through a restricted tender that Seaport won the bid to buy Penang Port,” Lim said. – July 3, 2017.