The Penang Ferry service, which links Penang island to the mainland, will be turned into a separate entity from the Penang Port Sdn Bhd (PPSB) in the first quarter of next year.

PPSB managing director and chief executive officer Ahmad Ibnihajar said the proposal documents had been submitted to the federal government for approval.

He said the operating cost of the ferry service could be cut down by turning it into a separate public transport company.

"We hope the ferry service company will be accorded with privileges enjoyed by other public transport companies.

"PPSB also take into account various aspects, including ensuring Penang Ferry service employees will not be affected in the separation exercise," he told reporters after presenting PPSB outstanding awards here today.

Asked whether ferry fares would increase, he said the main objective of the decision was to improve ferry services for consumers and not to make profit.

"In the proposal documents, we highlight the operating cost borne by PPSB. There are two ways to offset the cost - by increasing ferry fares or by helping the government provide better infrastructures including buying new ferries," he added.

- Bernama