LABUAN: The nearly year-old Labuan-Kota Kinabalu-Labuan express ferry service has been suspended since the weekend because of rising fuel costs and high landing fees at the Jesselton Jetty Terminal in Kota Kinabalu.
LDA Holdings Sdn Bhd, the management company of the Labuan International Ferry Terminal, said the decision was made after operational costs became increasingly unsustainable for the ferry operator.
Its chief executive officer Noor Halim Zaini said the service, which resumed on May 28 last year after being halted during the Covid-19 pandemic, had provided a direct and convenient travel option between Labuan and Kota Kinabalu, eliminating the need for passengers to transit through Menumbok.
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"The ferry service has significantly benefitted travellers by offering a direct connection between Labuan and Kota Kinabalu, and vice versa, while also contributing to increased visitor movement between the two destinations," he said when contacted on Thursday (April 2).
He said following the resumption of the service last year, the Federal Territories Department had allocated significant funding to build a pontoon facility enabling ferry landings as well as facilitating the embarkation and disembarkation of passengers.
However, Noor Halim said the sharp increase in fuel prices, coupled with high landing charges imposed at the Jesselton Jetty Terminal, had placed considerable financial strain on the operator.
He noted that while Malaysian passengers currently enjoy a 50% subsidy on ferry ticket fares, there is no corresponding subsidy for fuel, compounding operational challenges.
"We hope the government will look into this issue, as it not only affects ferry operators but also has wider implications for travellers and the tourism sector,” he said.
The suspension of the service is expected to impact tourism flow and connectivity between Labuan and Sabah’s capital, particularly for travellers who prefer a direct sea route. – Bernama
