Labuan Ferry Corporation under attack for its poor service has blamed the state government's lackadaisical approach to its offer to build and operate a new terminal in Labuan.
The sole Labuan roll-on-roll-off ferry operator is furious that its monopoly business must now be shared with two other ferry operators.
Labuan Ferry Corporation (LFC) is also unhappy that it was not invited to state its views during state government discussions over the approval for two new Labuan-Menumbok ferry operators.
“We wish to clarify that LFC (Labuan Ferry Corporation) was not involved in the discussions. LFC is disappointed as the concession agreement provides an option for renewal of the concession and the state government was to enter negotiations for the renewal of the concession,” said Chief Executive Officer, Shamsul Sahari.
Shamsul argued that the ferry services market in Labuan with a population of about 80,000 is not large enough to sustain three operators.
He said that even the ferry service in Penang, which services a far larger population, loses substantial sums yearly in part due to the government control of fares.
“LFC believes that if there are three operators in the market, it will only be a matter of time before one or two operators will be forced out of the market through competition, particularly where the fares are being controlled by the state government,” he said in a statement here yesterday.
He also pointed out that the lack of facilities and amenities at the poorly equipped ferry terminals in Labuan and Menumbok had caused many of the problems travellers had complained about including delays, discomfort and inconvenience.
Shamsul said LFC had informed the government in January last year about this shortcomings and proposed that LFC be granted approval to build a new ferry terminal at Mempakul to replace the terminal in Menumbok.
LFC wants the current terminal at Menubok to be upgraded and converted for use by vehicles carrying cargo.
No reply from government
He said the company is also seeking a permit to design and build a new ferry terminal in Labuan and will build a new ferry capable of carrying 150 vehicles and more than 1,000 passengers within the next three years.
“Unfortunately, LFC has not received any response from the state government to its proposal,” he said.
He claimed that LFC had over the past 15 years demonstrated a commitment to improving the ferry service, including introducing a ferry which is capable of carrying 80 vehicles and 500 passengers.
Shamsul pointed out that the state government had appointed LFC to provide the service as the state government was unable to improve the ferry service without further spending.
The state government, he said, had been losing a substantial sum of money running the ferry service and that it was inconsistent.
“LFC took a big risk absorbing all the staff employed by the government in respect of the ferry service as well as taking over the vessels operated by the government,” he said.
Part of the service upgrade, he said, had been the computerization of the ticketing system which cost more than RM1 million and now enables bookings to be made up to three months in advance unlike previously where the public could only do so on the day of travel itself.
“LFC provides a good, reliable, convenient and affordable ferry service in accordance with the state government’s policy of providing Sabah and Bumiputera participation,” Shamsul added.
He denied that LFC had upped the fares as reported in the media.
“The fares are controlled by the state government and have not changed for more than 20 years. Further, LFC has not applied for an increase to the fares as alleged by some parties in the media.
“In effect, LFC was subsidising the costs. When the LFC first started operating the ferry service, diesel was only 40 sen per litre and now it has gone up to as high as RM2.30 per litre,” he said.
“There were (however) some attempts to cheat by some lorry operators that were discovered by LFC. These lorry operators had under-declared the tonnage of their lorries and some of them had been modified to increase the carrying capacity without the appropriate permits,” he said.
Shamsul said LFC would now have to study any proposal submitted by the state government before deciding whether it was feasible to continue providing the service.
LFC currently has a staff force of about 80. By Charlie Rudai
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