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Pelindo to develop two ports, upgrade one next year
State port operator PT Pelabuhan Indonesia (Pelindo) II plans to develop two new ports next year and upgrade Cirebon Port in West Java in a bid to expand its logistics services
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tate port operator PT Pelabuhan Indonesia (Pelindo) II plans to develop two new ports next year and upgrade Cirebon Port in West Java in a bid to expand its logistics services.
Pelindo II corporate secretary Banu Astrini said the two new ports would be located in Sorong, West Papua, and in Kijing, West Kalimantan.
'If all goes according to plan, the groundbreaking for the Sorong and Kijing ports will happen in 2016,' Banu explained in a text message.
Banu said the state-owned company was currently developing a final plan for the Sorong and Kijing ports. Investment is expected to amount to Rp 3 trillion (US$219.1 million) for the Sorong port and Rp 4.2 trillion for the Kijing port.
'The funding will come from the company's internal funding and from the proceeds of our global bond issuance this year,' Banu said, adding that the company did not plan to use money from the state budget for the development of the ports.
The company issued a global bond valued at $1.6 billion early this year. The global bond was divided into two series with the first series valued at $1.1 billion with 4.25 percent interest that would mature in 10 years. The second series was valued at $500 million with 5.375 percent interest that would mature in 15 years.
The bond issuance made Pelindo II the first state-owned company to issue a global bond, according to its finance director Orias Petrus Moedak as reported by kontan.co.id.
Orias added the proceeds from the bond issuance would also be used to finance the development of some other ports including the New Priok Port in Jakarta and the Palembang Port in South Sumatra in the first quarter of 2017.
Pelindo II manages 12 ports in 10 provinces.
The Kijing Port will be developed into a modern port with a capacity of 1 million twenty-foot equivalent units. The port will also be able to accommodate 6.3 million tons of crude palm oil in a 5,000 hectare area.
Initially, the port will specifically handle bauxite and alumunium.
Meanwhile, the Sorong Port will be built with a capacity of 15 million tons.
'Land procurement for both projects is still in progress. The expansion of the Cirebon Port is also still in the planning stage,' Banu said.
Pelindo II plans to expand the Cirebon Port to manage an additional 10 million tons with an estimated allocated investment of Rp 1.75 trillion.
Pelindo II, which operates the country's largest port, the Tanjung Priok Port, recently signed a concession agreement with the Transportation Ministry during which the company handed over the role of regulator to the government.
This means that any agreement that the company makes with partners must first receive the consent of the ministry.
Pelindo II president director RJ Lino has been quoted as saying that the company would invest up to Rp 50 trillion for the development of its newest ports, namely the Cikarang Bekasi Laut canal, the Tanjung Carat Port and the Bojonegara Port.
The Cikarang Bekasi Laut project is slated to commence in November. It is being built to ease the burdens on the Tanjung Priok Port. (fsu)
