Named after Raja Tun Uda Al-Haj Bin Raja Muhammad, the first Governor of Penang after independence, this terminal has been the primary arrival point for ferry commuters since the 1950s. Before the completion of the first Penang Bridge in 1985, these iconic double-decker ferries were the only way to transport vehicles between the island and the mainland.
While modern "fast ferries" have largely replaced the old car-carrying vessels for foot passengers, the terminal remains a nostalgic symbol of Penang’s maritime heritage. It is part of a pair of terminals, with its counterpart being the Sultan Abdul Halim Ferry Terminal in Butterworth. The terminal continues to serve as a scenic entry point for travelers wishing to experience the classic George Town skyline from the water.