Fri, 19 Aug 2005

Cikalong port to boost economy in sout West Java

The Jakarta Post, Bandung

Among the 57 infrastructure projects offered in the West Java Infrastructure Summit, which opened on Thursday, the Cikalong port project in Tasikmalaya attracted the attention of many potential investors.

The project is unique as it is located in the relatively poorer area of the province along its southern coast, while most projects were concentrated in the more advanced northern areas such as Bandung and Bogor.

"I quoted Jeffrey Sachs who says that the answer to poverty is ports and roads to ports," said Rio D. Praaning Prawira Adiningrat, board member of consulting firm PA Asia Ltd -- an affiliation to Brussels-based consultancy group Praaning Meines.

Sachs is a Professor of Economics and Director of the Earth Institute at Columbia University and a prominent figure in the global fight against poverty.

Rio said by building Cikalong port, the underdeveloped southern region of West Java could well be opened up for further investment and development.

The project, valued at approximately US$55 million, seeks to establish a multi-functional port consisting of three major components, namely, fish-processing, container feeder services and a bulk terminal, said PA Asia's Wim de Herdt, who is the advisor to the Tasikmalaya regency administration.

De Herdt told participants of the summit's working group on ports that the project would enable local residents to take advantage of the southern coast, which is a rich, yet largely untapped fishing area due to the limited numbers of vessels and harbors.

The single quay port could initially handle 1,000 20-feet container (TEUs) per week and gradually increase to 10,000 TEUs a week, he added.

The port could provide an attractive export-import alternative route to the constantly congested port of Tanjung Priok in Jakarta, as well as open up a maritime gate to or from Australia or other countries.

"The Cikalong port project is the key to jump-starting the development of the entire southern region of West Java," he said.

In closing his presentation, De Bert said that the Asian Development Bank (ADB) had shown interest in the project.

Separately, ADB senior advisor Vladimir Bohun said that the Cikalong project was a good example of a public-private partnership and that such cooperation had to be increased.

"You can't reach poverty alleviation without sound economic growth. But you can't have sound growth without good infrastructure," Bohun told The Jakarta Post, while declining to confirm his company's interest.

The province is offering a total of 57 infrastructure projects valued at an estimated Rp 35 trillion (about $3.52 billion).