Penang has urged Seaport Terminal (Johor) Sdn Bhd - owned by tycoon Syed Mokhtar Al-Bukhary - to reveal plans for the development of Penang Port.

In a press release today, Chief Minister Lim Guan Eng said the company had thus far been secretive on the terms of the privatisation process and has yet to reassure the state.

“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,” said Lim.

azlan Among others, Lim said the people of Penang have the right to know whether the privatisation process is in their interest or whether it will only benefit BN related companies.

“Such public (infrastructure) 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,” he warned.

Lim claimed that the federal government’s oversight would only lead to “piratisation” and taxpayers will be burdened with losses.

“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 Prime Minister Najib Abdul 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,” he said.

Contradiction

Lim said that Seaport’s announcement that Penang Port will not be relegated into a feeder port, does not allay fears without full disclosure of facts and figures of their future plans and amounts to be invested to develop Penang Port.

“Seaport’s assurances contradicts MCA President and Penang Port Commission Chair Dr Chua Soi Lek’s previous public 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,” said Lim.

He also said Syed Mokhtar has not responded to accusation that the takeover is “creating a monopoly”, as stated under the Anti-Competition Act 2010.

Syed Mokhtar currently controls the Port of Tanjung Pelepas and Johor Port.