This is to allow larger cruise ships to berth and cater to more passengers by the end of 2019.
The 60:40 joint venture, with the lion’s share held by Penang Port, will see the existing berth of 400 metres extended to 660 metres and an additional berthing dolphin of 118 metres.
With the expansion, the cruise terminal will be able to handle two mega-sized cruise ships, along with a small ship and a medium-sized ship at the same time, by the end of 2019.
This will enable the pier to handle 12,000 passengers at any given time, an increase from its current 8,000 passengers. Last year, the cruise terminal received 1.2 million visitors.
RCCL will make 36 calls in total to Penang next year, bringing in close to 129,000 guests.
The expansion will also see the world’s largest cruise ship from RCCL calling at the pier when the expansion is completed.
Penang Port CEO Sasedharan Vasudevan said the construction would begin before the end of 2018.
He said the expansion would also make Penang more attractive as a homeport for cruiseliners. This would see more tourist dollars coming into the state.
“George Town is a perfect cruise destination. The water is naturally deep and sheltered, there’s sun all year around and the pier is right in town, so passengers can just walk out into town.
“With the Penang government’s full support in managing tourism and logistics, we are confident of having a strong future growth of the cruise industry in Penang,” he said at the signing with RCCL at a hotel here today.
RCCL International senior vice-president Gavin Smith said it was eager to bring its larger ships to Penang, especially its Quantum of the Seas ship next year.
He said the expansion of the pier would bring a new era of cruise tourism for Penang.
Meanwhile, Transport Minister Anthony Loke said Malaysia has become a haven for cruise ships, with 599 calls to the country’s ports last year, compared with 359 cruise calls in 2013.
“It should be noted that Penang was the top port of call for cruiseliners in Southeast Asia in 2017 and the next popular one was Port Klang.”
Since beginning its operations in 2010, the Swettenham Pier has handled over one million passengers yearly, with a recorded passenger growth of 19.1% and almost 2,000 ship calls.
According to Penang Port, there are days when up to six cruise ships take turns to berth at the pier.
Surveys have shown that cruise passengers landing in George Town spend at least US$70 (RM280) per person.