Arie to build cargo depot

SEMARANG (JP): PT Artha Mitra Pandawa, owned by President Soeharto's grandson, Arie Sigit, has signed an agreement with the state railway company Perumka to develop a Rp 3.9 billion (US$1.6 million) container yard.

PT Artha president Arien Fajar Priambodo and Perumka Central Java Office chief Nugroho signed the contract on Thursday.

The container yard is to be built on Perumka's 4.2-hectare site near Semarang's Tanjung Emas port.

Nugroho said warehousing in the city was becoming more competitive because more firms were getting into it, but this warehouse would be profitable because of its location.

Its access to the port would make cargo flow smoothly at the warehouse, he said.

He said Perumka had another 12 hectares in strategic locations in Semarang which could be leased.(har/jsk)