The Penang Port Commission (PPC) is currently working to salvage the ferry while the fire and rescue department is preventing oil from spilling into the sea.

It is understood that the ferry began to lean to one side before sinking at around 3am after strong winds snapped its mooring ropes.

When contacted, PPC chairman Yeoh Soon Hin confirmed the incident.

The iconic Penang ferry service, which had operated for 126 years, was discontinued in 2020 and replaced with speedboats for passenger transport and ferries for motorcycles and bicycles.

In a press statement, Yeoh said PPC was notified of the sinking at 3.36am.

Upon its arrival, it immediately attached additional mooring lines and oil booms to the ship to prevent an oil slick from forming.

The ferry fleet was offered for lease in 2021 by PPC as tourist attractions, with a fish farming company promising to convert two ferries into floating restaurants.

However, Yeoh said the deal was called off in February 2023 due to breaches in the lease agreement.

“Additionally, PPC received offers for the purchase and rent of various PPC-owned ferries from several companies. But their high overall cost and unsuitable location suggestions posed an issue for both parties.

“As such, we have decided to scrap our iconic ferries immediately,” he said.