Govt invites liners as 'strategic partners' in seaport<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
After failing to entice investors in the planned Bojonegara
\nseaport in Banten, the government has decided to build the port
\nitself and then invite shipping liners to invest in the seaport's
\nterminals.<\/p>\n
Office of the State Minister of State Enterprises logistics
\nand tourism head Ferdinand Nainggolan said on Thursday that the
\ngovernment had spent Rp 20 billion (US$2.4 million) building the
\nport that would be opened by the end of July.<\/p>\n
Earlier this year, the government scrapped a deal with Hong
\nKong-based Hutchison Port Holdings and Bimantara Group due to a
\nfinancial dispute.<\/p>\n
Later in April, it invited new investors to develop the
\nBojonegara seaport but it appears no investor closed a deal with
\nthe government.<\/p>\n
Ferdinand said the government decided to build the port with
\nits own money and later invited 'strategic partners' to complete
\nit. Earlier, he estimated the port would cost at least US$350
\nmillion.<\/p>\n
\"The government will invite shipping liners to use the port's
\nterminals. We are still the one who owns and manages the port,
\nbut the liners are those who manage the terminals they use,\" he
\nsaid after a hearing with the House of Representatives Commission
\nV for trade and industry.<\/p>\n
\"If you go to Taiwan's port, you will see its terminals
\nmanaged by shipping liners like Evergreen,\" he said. \"So the
\ngovernment will do the same, inviting liners like Maersk and CGM-
\nCMA.\"<\/p>\n
The planned Bojonegara seaport will serve as a deepwater port
\ncapable of accommodating large vessels, and have a capacity to
\nhold at least 4,000 20-foot containers.<\/p>\n
Such a seaport allows exporters in Indonesia to deliver their
\nshipments directly to overseas destinations such as Europe and
\nAmerica without having to unload and reload the shipment in
\nSingapore or Malaysia.<\/p>\n
The latest report from the government shows that 75 percent of
\nthe country's overseas shipments have to stop in ports in those
\ncountries.<\/p>\n
In his presentation to the House, Ferdinand cited a report
\nsaying Indonesia was losing around US$1.09 billion per year for
\ndouble-handling costs in Singapore and Malaysia.<\/p>\n
Previously, he estimated losses to Indonesian exporters at
\nUS$700 million.<\/p>\n
Bojonegara seaport is a part of the government's plan to make
\nstate-owned seaport operators -- PT Pelindo I, II, III and IV --
\nmore profitable by improving the facilities and the
\ninfrastructure of 10 ports across the archipelago. Rather than
\nfunction as passenger ports, they will mainly serve as trading
\nseaports.<\/p>\n
The Office of the State Minister for State Enterprises, which
\ncontrols the four operators, also plans to merge the four
\ncompanies to boost efficiency.<\/p>\n
However, the plan has encountered objections particularly from
\nbusinesses in eastern parts of Indonesia and the State Minister
\nfor the Acceleration of Development of Eastern Indonesia Manuel
\nKaiseipo.<\/p>\n
The latter feared the merged operator would mainly focus on
\nmaking profits, abandoning its public service role.<\/p>",
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