Giant container port to be built on Batam

BATAM, Riau (JP): Indoport, a British company incorporated in Indonesia, will build one of the largest container ports in Asia worth US$900 million in Kabil, Batam island.

"The first phase of the port's construction is scheduled to begin early next year, following the signing of the agreement between the Batam Industrial Development Authority and the company last September," the chief of the authority, S. Djatmiko, announced yesterday.

Djatmiko was speaking during a ceremony to mark Garuda Indonesia's maiden flight on the Jakarta-Batam-Jeddah route.

Djatmiko said that Indoport is owned by two British businessmen who have built a container port in Russia.

When the first phase of the construction of Batam port is completed by 1998, the port will have a capacity of 1.5 million ton equivalent units (TEU), he said.

The construction will be continued through 2001 to bring the port's total capacity to 3.5 million TEUs and its quay's length to 12 kilometers, he said.

Djatmiko said Indoport will operate the port under the build- operate-transfer system for 60 years.

"The port will become one of the largest container ports in the region and is expected to take over some of the load of Singapore's port, as well as to serve the growing industrial activities on Batam island," he said.

The 415-square-kilometer Batam island, situated 20 kilometers southeast of Singapore, has been developed since the early 1970s as an industrial and tourism center. (jsk)