PENANG (Sept 24): After having invested over RM100 million in upgrading the Swettenham Pier Cruise Terminal, MMC Corporation Bhd's Penang Port Sdn Bhd plans further expenditure to enhance the port's capabilities to become a major cruise hub in Southeast Asia.
Despite ranking second in Southeast Asia behind Singapore, Penang Port aims to close the gap by enhancing its "home porting" capabilities, according to chief executive officer Datuk Sasedharan Vasudevan.
Home porting allows cruise ships to begin and end their voyages in Penang, drawing more vessels to the port and stimulating local businesses.
This setup boosts the local economy as passengers spend time in the area before and after their cruises, while ships source supplies from nearby businesses.
“We need a holistic home porting ecosystem, which includes seamless coordination between the airport, port, and authorities like customs and immigration,” Sasedharan said. The port operator is working closely with the Malaysia Cruise Council to promote Penang as an international cruise operator.
Penang Port handled 1.2 million cruise passengers last year and expects similar growth in the coming years. Each cruise ship arrival brings between 4,000 and 6,000 passengers, who spend on local services such as food, transportation, and accommodation.
However, this year’s numbers have been impacted by the ongoing Red Sea crisis, which has led to the cancellation of some international cruise calls, Sasedharan noted.
Still, Penang Port remains optimistic about the long-term prospects for its cruise operations.
“Penang is well positioned to capture a larger share of the regional cruise market. Our investment in modernising the cruise terminal and expanding home porting capabilities gives us a competitive edge,” Sasedharan said.
While Chinese tourists once dominated the market, recent growth has come from India, Indonesia, and Western countries. “We have seen a 20%-30% increase from the Indian market, and Indonesia is showing strong numbers as well. This shift has helped offset the decline in Chinese tourists post-pandemic,” Sasedharan noted.
In the long term, Penang Port plans to implement shore power technology by 2030, allowing docked cruise ships to connect to the local electrical grid, reducing emissions and aligning with global environmental standards.