As the core of Malaysia's second largest conurbation, Penang has a relatively developed transport infrastructure. The state is well-connected by land, air and sea. The Penang International Airport is Malaysia's third busiest by passenger traffic and the busiest by export volume, while the Port of Penang is the main transshipment hub of northern Malaysia. The island city of George Town is physically connected to mainland Seberang Perai by two road bridges and the oldest ferry service in the country. The North–South Expressway and Keretapi Tanah Melayu's west coast line – two major arteries along western Peninsular Malaysia – run through the state.
Within the state, Rapid Penang forms the backbone of urban public transport, operating public bus services throughout the conurbation. Penang Sentral serves as the main intermodal transport hub of northwestern Malaysia. The Penang Hill Railway is also the only operational funicular railway system in the country. As part of additional investments in transport, a proposed light rapid transit system, the Mutiara LRT, is expected to be completed by 2030.