Bitung, Bojonegoro, Kabil to be main ports

JAKARTA (JP): Minister of Transportation Haryanto Dhanutirto said yesterday that Kabil Port on Batam Island, Bojonegara Port in Banten, West Java, and Bitung Port in North Sulawesi would become the country's main ports.

Haryanto said the three locations not only had a more strategic location and deeper water than other alternatives but also better economic prospects.

The three ports are to be developed to boost international shipping activities and support the country's export industry, he said.

The Batam Industrial Development Authority has earlier said Kabil Port would be developed by a British company, Indoport, with a capacity of up to 3.5 million 20-foot equivalent units (TEUs) a year.

Indoport is to invest US$900 million in the project and will operate it under a 60-year build-operate-transfer (BOT) contract.

Bojonegara Port is being developed by a consortium, PT Teluk Banten Peti Kemas Indonesia, which consists of the state-owned port operator PT Pelabuhan Indonesia II (30 percent); PT Bina Jasa Hantarindo (25 percent), a company controlled by President Soeharto's son Bambang Trihatmodjo; and Hutchison Port Holding of Hong Kong (45 percent).

Construction of the port began last year and is scheduled to be completed by 2007. It is expected to handle up to 2.4 million 20-foot TEUs yearly.

Teluk Banten Peti Kemas Indonesia is to run the port under a 30-year BOT contract.

Bitung Port on Bitung Island is being developed by the state- owned port operator PT Pelabuhan Indonesia IV which will invest Rp 80 billion ($33.2 million).

Haryanto said several other large ports would be developed into secondary ports with the primary role of supporting domestic sea transportation.

The additional sites include Belawan Port in North Sumatra, Panjang Port in Lampung, Tanjung Priok Port in Jakarta, Tanjung Emas Port in Central Java, Tanjung Perak Port in West Java and Makassar Port in South Sulawesi.

Haryanto said the government would also develop 22 tertiary ports but did not elaborate.

"At present, the ports have inadequate facilities," he said. "The problem will be solved by inviting private investors." (jsk)