Labuan-Kota Kinabalu Ferry Service Temporarily Suspended Due To Rising Costs
LABUAN, April 2 (Bernama) -- The nearly year-old Labuan-Kota Kinabalu-Labuan express ferry service has been temporarily suspended since last weekend due to 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, 2025, 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.
“The ferry service has significantly benefited 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 told Bernama today.
He said following the resumption of the service, the Department of Federal Territories had allocated significant funding for the construction of a pontoon facility to enable ferry landings as well as facilitate 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 per cent subsidy on ferry ticket fares, there is no corresponding subsidy for fuel, further 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 flows and connectivity between Labuan and Sabah’s capital, particularly for travellers who prefer a direct sea route.
-- BERNAMA
