Govt to improve Sabang Port

JAKARTA (JP): Minister of Communications Agum Gumelar said on Thursday the government would develop new facilities at Aceh's Sabang Port to improve its service and capacity as an international port for passengers and cargo.

He said the expansion project would take three to four years to complete and estimated the total cost at over Rp 20 billion (US$2.8 million).

"The funds are expected to come from loans from Japan Bank International Cooperation as well as from the budget allocated by the port's management, PT Pelindo I," he was quoted by Antara news agency as saying.

President Abdurrahman Wahid on Tuesday formally changed the status of Sabang Port to that of a free port zone.

Agum said Sabang Port would see an enormous increase in business once its new facilities were completed because it was located between the two busy transshipment ports of Singapore and Srilangka. (cst)