New Labuan ferry operators get go-ahead

For several decades, the ferry service between Labuan and the mainland has been the monopoly of LFC but now it faces competition.

KOTA KINABALU: The Sabah government has finally relented over the limited roll-on-roll-off ferry services to Labuan island and has opened up the market to two more operators starting this Friday.

The Labuan Ferry Corporation (LFC), which has been operating the service for several decades between Labuan and Menumbok on the Sabah mainland, will now face competition from two more operators which have been offered landing rights.

Deputy Chief Minister Joseph Pairin Kitingan, in making the announcement yesterday, said the two operators could commence its services from Friday if they accept the conditions imposed by the state government.

Pairin, however, did not disclose the conditions for their landing rights in Menumbok. The issue is complicated, given that landing rights is controlled by the state government while ferry services come under the jurisdiction of the federal government.

One of the conditions, according to those in the industry, is that all three operators must allow for both human passengers and vehicles on their ferries, something which the LFC is doing now. Another condition is ensuring fair competition among the three competitors.

Pairin, who has been blamed for the long delay in approving competition in the sector, said: “This matter needs a thorough study. We are doing something, we are not neglecting our responsibilities.”

He said the state Cabinet at its recent weekly meeting decided to allow three operators for the route to create a more competitive business, which should satisfy the expectation of consumers.

“The state government hopes the three companies will accept the offer to provide ferry services, not only to transport passengers, but also vehicles,” he said at a press briefing at the Public Works Department here yesterday.

“It is also our hope that they will be able to provide a more efficient, faster and punctual service,” said Pairin, who is also the State Infrastructure Development Minister.

Pairin also said that his ministry would be calling the two potential operators for discussions soon.

While consumers and businesses will be heaving a sigh of relief over the opening up of the ferry services, there are no indications that the two operators have agreed to the conditions. - FMT