Foreign firms bid for container terminal operator<\/p>\n
JAKARTA (JP): Four foreign port operators have submitted bids
\nfor a 49 percent stake in a state-owned container terminal
\noperator in Surabaya, the country's second largest commercial
\ncenter, according to a senior government official.<\/p>\n
Assistant to the State Minister of the Empowerment of State
\nEnterprises Tanri Abeng, Herwidayatmo, said on Monday the winner
\nwould take a stake in newly established PT Terminal Peti Kemas
\nSurabaya, a full subsidiary of the state-owned port management
\ncompany PT Pelindo III, for a 20-year concession.<\/p>\n
The results should be announced \"if not this week, next week\",
\nhe told reporters at a coffee morning gathering.<\/p>\n
The firms are Stevedoring Services of America, Peninsular and
\nOriental Australia Ltd., International Container Terminal
\nServices Inc. of the Philippines and France's Port of Marseille.<\/p>\n
Herwidayatmo expected privatization proceeds would be less
\nthan that raised from the sale of a 51 percent stake in PT
\nJakarta International Container Terminal (JICT), a subsidiary of
\nPT Pelindo II, to Grosbeak Ltd., a unit of Hong Kong's Hutchison
\nWhampoa.<\/p>\n
He added that \"political reasons\" were behind the government's
\ndecision not to sell a majority stake in Pelindo III's
\nprivatization program.<\/p>\n
The government raised US$215 million in proceeds from the
\nPelindo II privatization last month. It was the second and final
\nprivatization deal it reached during the 1998\/1999 fiscal year,
\nfrom its target to privatize 10 companies.<\/p>\n
Several legislators expressed concern earlier that the Pelindo
\nII privatization program was not transparent, and the government
\nreceived a low price for the sale.<\/p>\n
Tanri dismissed the allegations on Monday.<\/p>\n
Stressing the privatization was conducted in a transparent
\nway, he said the limited disclosure during the bidding process
\nwas a necessary condition because the bidders were publicly
\nlisted companies.<\/p>\n
He termed it a \"good price\" considering the current political
\nand economic uncertainty.<\/p>\n
Tanri said JICT was sold at a price earning ratio (PER) of 13
\ntimes 1999 earnings, which is higher than the 1999 PER average of
\n12.8 times of the foreign terminal container operators.<\/p>\n
\"The sale of JICT was even higher than that made by Grosbeak
\nfor a 50 percent stake in Rotterdam Port.\" He said Grosbeak bid
\n$180 million for the Dutch port, which has twice JICT's capacity.<\/p>\n
Earnings<\/p>\n
He explained JICT's privatization would boost its earnings to
\nat least $992 million, compared to only $725 million without the
\nprivatization program, because the company could increase its
\ncapacity from 1.6 million TEUs to 3.15 million TEUs.<\/p>\n
He added that JICT would also benefit from Hutchison's
\nownership in 17 port operators throughout the world, and a 10
\npercent share in the world's terminal container market.<\/p>\n
Tanri dismissed rumors that Grosbeak was partly owned by
\nIndonesian conglomerate Lippo Group.<\/p>\n
\"Grosbeak is a 100 percent subsidiary of Hong Kong listed
\nHutchison Whampoa. As a publicly listed company, all information
\nis available to the public,\" he said. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-firms-bid-for-container-terminal-operator-1447893297",
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