PENANG will be able to welcome larger cruise ships to Swettenham Pier Cruise Terminal (SPCT) after the completion of the proposed RM155 million cruise terminal expansion project.
Penang Port Sdn Bhd entered a joint venture with Royal Caribbean Cruises Ltd (RCCL) today to redevelop the SPCT.
The expansion includes extending the existing berth to 660m from the current 400m to enable SPCT to berth two RCCL’s new mega cruise vessels at the same time.
MMC Corporation Berhad Group managing director Datuk Seri Che Khalib Mohamad Noh said Penang Port was the oldest and longest established port in Malaysia.
“It has been known globally as a major trading centre in Southeast Asia. In 2016, Penang Port became a member of the MMC Group.
“The SPCT is one of the six terminals operated by Penang Port.
“Since it began operations in 2010, the terminal has handled over one million passengers annually.
“Last year, we recorded passenger growth of 19.1% with almost 2,000 ship calls,” he said in his speech during the joint venture signing ceremony at E&O Hotel today.
He said the expansion and redevelopment of the cruise terminal could increase revenue, create jobs and spur economic activity.
“In addition to the berth extension, there will also be improvements to the terminal which will enable us to handle 12,000 passengers at any given time.
“It will be a massive increase from our current capacity of 8,000 passengers,” he said.
RCCL senior vice-president international Gavin Smith said the Royal Caribbean’s engagement with Penang and PPSB had begun with the shift of growth focus in the cruise industry to Asia in the late last decade.
“Before then, Asia had only 5% of global cruise deployments. By 2012, it was 10% and now 15%.
“Royal Caribbean has been at the forefront of this growth, deploying first the 2,400-guest Rhapsody of the Seas to Asia many years ago.
“A few years later, we broke new ground in Asia, first with the 3,800-guest Voyager of the Seas and Mariner of the Seas, the first mega cruise ships deployed in Asia Pacific.
“It is followed by the 4,900-guest Quantum of the Seas and Ovation of the Seas, currently the largest based in Asia.
“Next year, we will bring in Spectrum of the Seas, our biggest yet to be deployed to Asia, with a total capacity of 5,622 passengers,” Smith said.
He said the Royal Caribbean would make 36 calls to Penang next year, bringing in close to 130,000 guests, with the Spectrum of the Seas, Quantum of the Seas and the two other cruise vessels.
“We have identified Penang as a potential investment in developing our Southeast Asia strategy.
“George Town is a perfect cruise destination. The pier is located right in town and the city itself is a great mix of history, culture and good food.
“There are also other cruise destinations nearby such as Phuket, Langkawi, Port Klang. Melaka and Singapore,” he said.
Chief Minister Chow Kon Yeow said the SPCT received over 1.2 million cruise passengers last year.
“If you sail the waters off George Town, you cannot miss the cruise terminal. It is an inseparable feature of the city and a hallmark of our maritime heritage.
“Today, it is a leading cruise destination in Asia and plays a vital role in our tourism,” he said.
Transport Minister Loke Siew Fook said Malaysia had been making waves in the cruise sector.
“Malaysia received 599 cruise calls to our ports last year. It should be noted that Penang was the top port of call in Southeast Asia last year.
“This joint venture marks the beginning of a fruitful relationship to turn Penang into a world-class cruise destination,” he said.
Loke hoped that the expansion project could start soon after resolving the SPCT land leasehold issue.
Chow said in principle the Penang government, either through the Chief Minister Incorporated or the Penang Port Commission (PPC), agreed to extend the lease of the SPCT land to PPSB to redevelop the cruise terminal.
“We are committed to assist in the project and we hope that the project can be completed within a year’s time,” he said.
On the appointment of the Penang Port Commission chairman, Loke said the appointment would be made by the King according to the recommendations of the Prime Minister.
“We know that there is a vacancy in PPC. Same goes to many port authorities such as in Klang, Johor, Labuan and Bintulu.
“The Prime Minister is very serious in vetting through (the recommendations) to make sure the right people are appointed.
“We want more professionals on board. We hope these appointments can be made within a month,” he said.
Story by Christopher Tan
Pix by Law Suun Ting
Video by Chan Kok Kuan