Situated at Butterworth, this docking facility is used for the state's ferry service between the city and George Town, which lies across the Penang Strait.

This allows ferry commuters to choose between bus and train transportation modes to various destinations within the city, as well as Peninsular Malaysia, Singapore and Thailand.

The Sultan Abdul Halim Ferry Terminal was constructed to replace Mitchell's Pier, which had been built at the start of the 20th century.

In the past, Mitchell's Pier was the landing point for the cross-strait ferries that linked Butterworth with George Town.

In 1988, the Sultan Abdul Halim Ferry Terminal suffered structural failure due to overloading and collapsed, claiming the lives of 32 people.