The two companies will set up a joint venture to operate the terminal which is slated to begin operations by the middle of next year. It will be the first of three container terminals to be built at the port, which is part of the expansion project at Jakarta's severely congested Tanjung Priok Port.
Pelindo II will take a 51% stake in the joint venture and the Japanese business group will hold the remaining 49%. “IPC (Indonesian Port Corporation) appointed Mitsui as terminal operator because we believe Mitsui can give added value to the Indonesian port business. Mitsui can build and develop port facilities that will make Tanjung Priok Port equal to other ports in developed countries,” said Pelindo II president director Richard Lino.
“We estimate the construction of the first container terminal will be accomplished and begin operations in the middle of 2015,” Lino said. “We are upbeat we can operate the first terminal on time,” he added. The first terminal would have a total capacity of 1.5m teu, Lino noted. Building cost is estimated to be IDR4.5trn ($393m) and will be fully paid for by Mitsui.
After the first terminal is completed, Mitsui will build two other container terminals with an additional capacity of 4.5m teu, which is expected to be completed in 2018. The three container terminals are estimated to cost up to $2.5bn, Lino said.
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