Jakarta: Ireland's Dublin Port Company has come to an agreement with the government of Indonesia's Aceh province to develop Sabang (pictured) off the northern tip of Sumatra, in a deal that could cost up to US$900m.
"Sabang could present an attractive option as a deep-water transhipment centre to anyone seeking to avoid the increasingly congested Malacca Straits, through which some 30 per cent of the world's shipping passes," the Financial Times noted.
The two sides have agreed to form Sabang Hub International Port, an equal share joint-venture company that is likely to be up and running by July, according to Saiful Achmad, head of the Sabang Free Trade Zone Management Board.
"Everything has been approved. We're just waiting for the signatures of the senior officials on both sides," Mr Saiful said. "Our plan is to build a quay 2,500m long, and the harbour will be 22m deep. The contract will last for 50 years." [20/04/07]
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