Penang water taxi project postponed as company fails to meet prerequisites

GEORGE TOWN: The Penang government's intention to introduce a water taxi service in the state has had to be postponed after the selected company failed to meet the approval conditions set by relevant agencies.
State Transport Committee chairman Zairil Khir Johari said the project, which received conditional approval from the Transport Ministry (MoT) had undergone several phases, including the company selection process through the Request for Proposal (RFP) method.
The project proposal was submitted to MoT on April 25, 2022, and conditional approval was granted via a letter dated Oct 18 the same year.
"The Penang Island City Council (MBPP) called for RFP proposals to appoint a company interested in implementing the service.
"The RFP was advertised on Dec 12, 2022 and closed on Feb 27, 2023. Two companies submitted proposals and underwent an evaluation process by the MBPP's technical evaluation committee," he said.
Zairil (PH-Tanjung Bungah) said this in response to a written question from Teh Lai Heng (PH-Komtar) regarding the latest status of the water taxi service during the state legislative assembly sitting today.
He said one of the companies was selected and issued a letter of intent to proceed with the project.
"However, the company failed to obtain all the necessary approvals from relevant agencies such as the Marine Department, Penang Port Commission (SPPP), District and Land Office, and the Maritime Department.
"As a result of this failure, the MBPP procurement board decided to cancel the RFP, and a cancellation letter was issued to the company on April 17.
"The state government is currently in discussions with the MoT to re-evaluate the terms and feasibility of the project in more detail," he added.
Zairil said if the RFP is reopened in the future, the state government hoped that interested companies would be truly prepared and have the capacity to meet all the required conditions.
The water taxi project was originally proposed to operate at four jetty locations identified as suitable pick-up and drop-off points for passengers.
The project, which was expected to begin operations in 2024, was envisioned as a new mode of public transportation for Penang residents.
The water taxi service is also included in the RM46 billion Penang Transport Master Plan (PTMP).
Following that, the state government and MBPP opened the RFP in 2022 for companies interested in bidding for the project.

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