Batam port expansion bid to open in February

Tantri Yuliandini, The Jakarta Post, Batam, Riau

The Batam Industrial Development Authority (BIDA) expects to begin the international bidding process for the expansion of the Batu Ampar general cargo and container port in February, BIDA chairman Ismeth Abdullah said.

"Nine international firms are currently conducting feasibility studies for the project and they are expected to be completed in four months. Then we can begin the international bids for construction," he told visiting reporters here.

Ismeth said that the main seaport of Batam, the Batu Ampar Port, currently had the capacity for 70,000 TEU containers and 3 million tons of general cargo per year.

"The actual demand is estimated to reach 200,000 TEU containers but this could not be served due to the limited facilities," he added.

The goal of the US$240 million project was to expand the port to a capacity of 1 million TEU containers and 5 million tons of general cargo within five years.

"The initial cost of the project is estimated at $70 million for two years," Ismeth said.

He said that the amount would cover 2.7 million metric meters of dredging, the construction of a 1,400-meter container wharf, reclamation of 3.5 million square meters of land, the construction of 20,000 square meters of office buildings, 1,200 square meters of break water and 11 quay gantry cranes.

The project would be offered under a build, operate and transfer (BOT) scheme with BIDA, Ismeth said.

Nine other projects were currently in the pipeline, he said, explaining that some would be offered to private investors under the BOT scheme while others would be operated by BIDA.

The projects were expected to provide jobs for between 15,000 and 20,000 people.

The projects include a new power plant to anticipate power requirements for the next two years and the development of the island's water supply.

Ismeth said that the current water supply was enough for 800,000 inhabitants, well below the current population of about 600,000 people.

The proposed expansion is expected to supply fresh potable water for one million people, he added.