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Toyota, Mitsubishi keen to operate Patimban Port

Toyota, Mitsubishi keen to operate Patimban Port
Keen to ensure security of their vehicle exports business in Indonesia, Japanese auto giants Toyota Motor Corporation and Mitsubishi Corporation are among the leading bidders to operate the new Patimban port in West Java, local reports said.

The port, which is being developed by the Indonesian government with funding and support from the Japan International Cooperation Agency (JICA), is expected to start operations in 2020, and is seen as key to the operations of the two major vehicle manufacturers as it is only a two-hour drive from the Cikarang industrial complex on the eastern outskirts of Jakarta, where both their plans are located. 

Apart from helping to divert some volumes from the  main seaport at Tanjung Priok in North Jakarta, Patimban port will also feature a special terminal for importing and exporting motor vehicles. Both Toyota and Mitsubishi have previously said that they intend to transform Indonesia into their primary regional car export base.

However they still face the usual problems in Indonesia, as antiquated laws still cap foreign ownership of port operators at 49%, thus necessitating a complicated and tricky tie-up with a local partner before they can formally bid.

Meanwhile the writing already appears to be on the wall, as is the usual case. "From Indonesia, only Pelindo II has shown interest in bidding for the port management contract," Indonesian Transportation Ministry director general of sea transport Tonny Budiono was quoted as saying.

"We will have an auction later to determine who acquires the contract," Tonny said.When fully completed Patimban Port's capacity of 7.5m teu will almost matchTanjung Priok's current capacity of 8m teu.