Singapore's Neptune bids for Indonesian terminal<\/p>\n
SINGAPORE (Dow Jones): Neptune Orient Lines Ltd. Wednesday
\nsaid its American President Lines unit is leading a consortium
\nbidding for 48.52 percent of a container port in Jakarta.<\/p>\n
A NOL spokeswoman confirmed Wednesday APL is bidding to be the
\nsecond largest shareholder in Koja Container Terminal at
\nJakarta's Tanjung Priok port.<\/p>\n
The Koja terminal is 51 percent-owned by the state-run PT
\nPelabuhan Indonesia, or Palindo, while the remaining shares are
\nowned by the Humpuss Group, controlled by Hutomo Mandala Putra,
\nformer president Soeharto's youngest son, the Business Times
\nreported Wednesday.<\/p>\n
The NOL consortium also includes the Singapore government's
\ninvestment arm, Temasek Holdings Ltd., and Singapore-listed
\nIndonesian shipping company, Samudra Shipping Lines Ltd. (P.SDS),
\nthe newspaper reported.<\/p>\n
NOL's regional rival, Hong Kong's Hutchison Whampoa Ltd. and
\nan unnamed Indonesia group are also said to have placed bids.<\/p>\n
The Singapore consortium is reportedly offering US$150 million
\nfor the stake, but the NOL spokeswoman declined to confirm the
\nfigure.<\/p>\n
Ron Widdows, NOL's senior vice president for operations, said
\nin a statement that the port will help NOL cut costs and improve
\noperations.<\/p>\n
\"The Koja Terminal would better protect our interests and
\nprovide APL with the ability to have a greater influence in the
\noperations of the terminal, providing better controls over costs
\nfor our business in Indonesia,\" he said.<\/p>\n
Koja, a two-berth terminal with five cranes, won't be a
\ndedicated terminal as \"we and out potential partners have
\nsubstantial volumes, and the terminal would have other customers
\nas well,\" Widdows said.<\/p>\n
Analysts say the APL-led consortium has a \"strong\" chance of
\nsecuring the bid.<\/p>\n
\"The consortium has the political connections, the management
\nexpertise and the deep pockets to pull this through,\" said one
\nanalyst who declined to be named.<\/p>\n
If successful, NOL will be the second Singapore company to own
\na chunk of a distressed Indonesian company.<\/p>\n
Earlier in the year, auto distributor Cycle & Carriage Ltd.
\nsuccessfully bid for a cornerstone PT Astra International Ltd.
\nIts consortium included the Government of Singapore Investment
\nCorp.<\/p>\n
NOL later confirmed that APL will be buying the stake
\ncurrently held by the Humpuss Group.<\/p>\n
The Business Times said Humpuss will use the proceeds from the
\nsale to pay the Indonesian Bank Restructuring Agency, or IBRA,
\nwhich took over a large part of the group's Rp 5.46 trillion debt
\nwhen it took over loans from banks closed by the Indonesian
\ngovernment last year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/singapores-neptune-bids-for-indonesian-terminal-1447893297",
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