Penang Port Sdn Bhd (PPSB) should first upgrade the quality of its services and facilities before increasing the ferry fare from 60 sen to RM2.

Accusing the ferry operator of "putting the cart before the horse", the Consumer Association of Penang (CAP) also hit out at the state government for putting PPSB's commercial interests above consumer needs.

"Any fare hike should only be implemented, and even that gradually, after the ferry service and facilities have been improved considerably," said CAP president SM Mohamed Idris.

"Until then, the public and government should reject the proposal for fare hike."

Last week, PPSB managing director Ahmad Ibni Hajar announced that the government had agreed to the port operator's proposal to increase ferry fares for adult passengers and for vehicles.

Under the proposal, the fare for cars and lorries, which range from RM12 to RM35 depending on capacity, will be increased by between 10 and 15 percent.

Ahmad justified the hike by pointing out that the fare for passengers has not been increased since 1996. During this period, the cost of fuel, human resources and maintenance of ferries has escalated.

Heavy losses

PPSB claimed it has suffered heavy losses in recent years because motorists prefer to use the Penang Bridge and commuters are using bus services now. One problem associated with using the ferry service is the long waiting time.

The company spends nearly RM500 in operation costs and makes only RM300 per trip. It believes the fare hike would offset losses, estimated at about RM12 million a year, by at least 30 percent.

Over the years, PPSB has sold 14 of its old vehicular-cum-passenger ferries to tour companies. PPSB currently has five double-decker vehicular ferries and three vehicular-cum-passenger ferries.

Penang Chief Minister Dr Koh Tsu Koon hassupported the proposed fare hike, which will be implemented early next year.

The CAP president, however, disagreed with the proposed increase, saying there has been no major improvement to services ice over the past 30 years.

"PPSB should cut down excessive administration expenses to reduce its losses," he said.

Penang DAP organising secretary Danny Law Heng Kiang echoed CAP's views, pointing out thatPPSB has been offsetting losses through its port operations.

"Unlike other transport systems, the ferry service is a symbol of Penang and local pride. It is also a tourist attraction," he said.

"Any decision, good or bad, on ferry services will affect all Penang residents. The government and PPSB have a social responsibility to safeguard the public interest ."

Following approval for the fare hike, PPSB plans to spend RM70 million by 2006 to upgrade its ferry terminal and operate four Catamaran-type passenger ferries to turn around its operations.