Ministry of Transportation (MoT or Kemenhub) and a consortium of contractors of Port Patimban, Subang, West Java signed a contract for phase 1 construction construction worth Rp 6 trillion. The project will be done from early August 2018.
Minister of Transportation Budi Karya Sumadi revealed that the consortium of Phase 1 Pelimban project consists of five companies, Penta Ocean, Toa and Rinkai from Japan, and PT PP (Persero) Tbk and PT Wijaya Karya (Persero) Tbk from Indonesia .
“We expect early next month to start construction and can be done in a few months. Insha Allah early next year or March 2019 can already operate car terminals and roro, “said Budi on the sidelines of the signing of the contract for the construction project of Port of Patimban package 1 in Jakarta, Friday (27/7) as quoted by Beritasatu.com as saying.
Budi explained, Port Patimban is very strategic because it can be a support for industrial areas in West Java to western Central Java.
Port Patimban can also support the role of Tanjung Priok Port, Jakarta, so that the volume of goods traffic can be divided.
“With the Port of Patimban, there is no longer congestion in Jakarta. Ordinary goods to Tanjung Priok via Jakarta can be transferred partially to Patimban. It also makes new conveniences for logistics connectivity from home and abroad, “said the Minister.
The project is part of President Joko Widodo’s infrastructure push to boost connectivity in the world’s largest archipelago of more than 17,000 islands, where logistics costs are high, and also an attempt to make the country a rival to Singapore as a transshipment hub.
South-east Asia’s largest economy jumped 17 places in the World Bank’s Logistics Performance Index 2018 to 46th position out of 160 countries, but still lagged behind some of its Asean peers – Singapore (seventh), Thailand (32nd), Vietnam (39th) and Malaysia (41st).
The Patimban Port development will run in three stages until 2027. The port will be able to handle containers of 3.5 million twenty-foot equivalent units (TEUs) when the first stage is completed.
Its capacity will be expanded to 5.5 million TEUs in the second stage and then 7.5 million TEUs in the final stage.
Indonesia has so far secured a 118.9 billion yen (S$1.46 billion) loan from Japan, covering nearly 83 per cent of the total costs in the first stage.
Ms Mari Takada, Minister (Economic Affairs), at the Japanese Embassy in Indonesia, expected that the new port will largely benefit Japanese firms in surrounding areas.
“There are many Japanese companies operating near the location. So the port will also facilitate their export and import,” she said, adding that Patimban Port will help reduce heavy traffic congestion to and from Tanjung Priok Port.
This operatorship will determine whether the new port could contribute to pushing down the country’s expensive logistics costs considerably, he added.
The Transportation Ministry has received applications from three to four consortiums taking part in the bidding to operate Patimban Port, Mr Budi said.
Pelindo II, also known as Indonesia Port Corporation, has teamed up with Japanese companies to join the bidding, according to local media reports.
Earlier, the government said that it hopes the operatorship of the new port will be 51 per cent owned by a local company, while the rest could be held by foreign companies. (straitstimes.com/ac)