Hong Kong firm eyes Bojonegara port

Hong Kong firm eyes Bojonegara port

JAKARTA (JP): A Hong Kong-based firm is planning to buy up to
45 percent of the consortium -- owned by the state-owned PT
Pelabuhan Indonesia 2 and a private firm -- developing a 1,200-
hectare port in Bojonegara, West Java.

Pelabuhan 2 president, Amir Harbani, said in a hearing with
the House of Representatives yesterday that the deal would be
finalized soon because an agreement for the acquisition had been
drafted.

"Based on the draft, Pelabuhan 2 and the private firm will
have a minimum 30 percent and 25 percent equity stake
respectively in the consortium, while the Hong Kong firm will
control a maximum 45 percent," he said during a break of a
hearing of House Commission V for tourism, post,
telecommunications and transportation.

He refused to name the Hong Kong company.

The consortium is owned by Pelabuhan 2 and PT Bina Jasa
Hantarindo, a company controlled by Bambang Trihatmodjo,
President Soeharto's son.

Harbani said US$700 million was needed for the first stage of
the port project and that following stages would be financed by
the stage one's proceeds.

The Bojonegara port is expected to ease the burden on
Jakarta's Tanjung Priok port.

The port, to be almost twice the size of the 600-hectare
Tanjung Priok port, is expected to accommodate the latest
generation of container ships with a draft of up to 18 meters and
a capacity over 6,000 twenty-feet equivalent units (TEUs).

The port, in Banten regency, is expected to be managed under a
30-year build, operate and transfer contract. The port is to
include a bulk grain terminal, a bulk liquid terminal and other
commercial facilities.

When completed by 2007, the port is expected to be able to
handle up to 2.4 million TEUs yearly.

Harbani said his company would expand the container terminals
at Lampung port in Sumatra, and Pontianak port in West
Kalimantan. These ports are scheduled to be completed next year.

Pelabuhan Indonesia 4 president Sumardi told the hearing his
company, which manages several ports in eastern provinces, would
expand Ujungpandang port in South Sulawesi, Bitung port in North
Sulawesi and Balikpapan port in East Kalimantan.

"The Asian Development Bank and the Overseas Economic
Cooperation Fund (OECF) are expected to finance the expansion
projects at the three ports," he said.

He said private firms had also been invited to participate in
the projects. (icn)