The cause was extreme crowding at the Sultan Abdul Halim Ferry Terminal of about 10,000 people. There were two simultaneous festivities involving the Chinese ethnic group, namely the Kwan Yin Goddess festival in George Town and the St. Anne's Church anniversary in Bukit Mertajam, Penang. The decorated float procession was held at the Esplanade and at Padang Kota Baru as well as passing through main streets of Georgetown. Statues of this goddess were paraded along streets decorated with colourful lights in the middle of the city on Sunday31 July 1988 night. There was a call for Buddhist devotees from the Chinese ethnic group to attend the event because it was held only once every 60 years according to the Chinese calendar and this festivity was believed to bring prosperity because Kwan Yin means 'Goddess of Generosity'. Tourists from Singapore, Hong Kong and Taiwan also came at that time. St. Anne's Church in Bukit Mertajam was also holding a large festival for its anniversary. Many Christian ethnic Chinese worshipped at this church on Sunday morning and proceeded to Penang in the afternoon to visit and observe the Buddhist ceremony.
Packed bridge
The Penang Bridge which opened in 1985 did not accommodate public transport. Many people chose to go tothe island to enjoy the scenic Butterworth Strait and sunset, and continue to the Esplanade on foot.
Packed jetty
The Sultan Abdul Halim Ferry Terminal had two levels. The lower level was for cars and other small vehicles to roll-on/roll-off. The upper level was for passengers from and to the Butterworth bus station. The terminal, built in 1956 could not withstand the 'assault' of 10,000 passengers. Its columns were made of reinforced concrete and floor of thick boards. The floor beams, fencing and walls, made of dense steel, covered the passageway for vehicles beneath. At 4:40 p.m., the beams buckled and snapped. The floor boards consequently collapsed. The steel walls and roof caved in. The passengers above slid and were crushed by columns and platform boards. Vehicles beneath were smashed.
Victims
32 people were killed and 1,674 people were injured. Victims were taken to Butterworth Hospital, Bukit Mertajam Hospital and other hospitals. The fire brigade struggled to extricate victims. The left passage was completely stopped. But the right passage could still operate, letting passengers travel to the island and back. The wreckage was left for a while for investigation and expansion planning. This news of the ferry terminal collapse was reported on the 8:00 p.m. TV3 main news.
Effects
After the incident, the Penang Port Authority studied the suitability and efficiency of the use of ferries between Butterworth and Raja Tun Uda Ferry Terminal at the Penang side. Express bus passengers were dropped not only at the Butterwoth bus station but also at Sungai Dua and Gelugor. Given the relative speeds of crossing the strait by ferry versus the Penang Bridge, most regular commuters now prefer the bridge. The Sultan Abdul Halim Ferry Terminal was rebuilt with several modifications.