Penang Port Sdn Bhd, a subsidiary of MMC Corporation Bhd, has announced further investments to enhance the Swettenham Pier Cruise Terminal, following an initial upgrade of RM100+ million (~USD 24M).
The port aims to strengthen its position as a leading cruise hub in Southeast Asia, where it currently ranks second behind Singapore.
According to Chief Executive Officer Datuk Sasedharan Vasudevan, Penang Port is focusing on expanding its homeporting capabilities/roundtrip voyages to boost the local economy. Passengers spend additional time in the area, while the ships procure supplies from local businesses.
Sasedharan stated they are working towards creating a seamless home porting ecosystem, which requires close coordination between the airport, port, and authorities such as customs and immigration. The port operator is collaborating with the Malaysia Cruise Council to promote Penang as an international cruise destination. Last year, Penang Port handled 1.2 million cruise passengers, and similar growth is expected in the future. Each ship brings between 4,000 and 6,000 passengers, contributing significantly to local services such as food, accommodation, and transportation.
However, the ongoing Red Sea crisis has affected international cruise traffic this year, leading to some cancellations. Despite this, Penang Port remains optimistic about its long-term cruise operations. Sasedharan added that Penang is well-positioned to capture a larger share of the regional cruise market, and their recent investments in modernising the terminal and expanding home porting provide them with a competitive edge.
While the Chinese market once dominated cruise tourism in the region, recent growth has been driven by passengers from India, Indonesia, and Western countries. The Indian market has seen a 20%-30% increase, and Indonesia is also showing strong numbers, helping offset the decline in Chinese tourists post-COVID.
Looking ahead, Penang Port plans to implement shore power technology by 2030. This will allow docked cruise ships to connect to the local electrical grid, reducing emissions and aligning with international environmental standards.