$50 million Lamongan port deal signed

$50 million Lamongan port deal signed

Indra Harsaputra
The Jakarta Post/Surabaya

PT Lamongan Integrated Shorebase (LIS) has signed an agreement
with PT Rotary Engineering Indonesia to construct a US$50 million
oil and gas port in Lamongan, East Java.

LIS was established in February last year and is co-owned by
the East Java provincial government-owned firm PT Petrogas Wira
Jatim and the Lamongan regency.

The port will be 55 percent owned by LIS, while Eastlog
Holding Ptc. Ltd. of Singapore will hold the remaining 45
percent.

President director Abdul Muid said the port and warehouses
would be located in the Tanjung Pakis area and would be completed
in the first quarter of next year.

"The construction of those facilities will start soon," he
said after signing the agreement.

The Lamongan facility would be the nation's fourth oil and gas
port, and the first outside Batam island.

The new port is expected to make the country more
internationally competitive, especially with Singapore, which has
similar facilities in Loyang, Jurong and Sembawang.

It will offer facilities such as cargo handling, rig anchoring
and maintenance, along with customs, immigration and quarantine
(CIQ) services.

There will also be open stockpiling yards, warehouses, silos
for bulk materials, an explosive bunker, workshops and a training
center within the compound.

Abdul said the first phase of the complex would be constructed
on a 75-hectare plot of land at a cost of US$25 million.

"Soon after the port's operations begin, we will start the
second phase; the expansion of the facility to 140 hectares at a
cost of $25 million.

Companies including PT Andhika, PT Aneka Gas and Kodeco have
already signed agreements with LIS to use the port.