Hutchison to invest $250m in Priok port

Hutchison to invest $250m in Priok port

JAKARTA (AFX-ASIA): Hutchison Port Holdings said it is planning to spend US$250 million over the next four years to develop facilities at both Jakarta International Container Terminal (JICT) and the recently-acquired Koja Terminal at Tanjung Priok port.

Group managing director John Meredith said at a news conference following a meeting with Indonesian economic ministers that the planned investment is aimed at transforming Tanjung Priok into an integrated port hub linking Indonesia's main port directly to end-destinations in Asia and Europe.

In March 1999, the group entered Indonesia by taking a 51 percent stake in a joint venture with the government to operate JICT under a 20-year concession agreement.

The company also recently bought a 48 percent stake in the Koja Terminal from Humpuss Group for $147 million, Meredith said.

In addition, "HPH is pursuing plans for investments to develop a hub port network for Indonesia, which will link the outer island ports with the Tanjung Priok port."

He said he has discussed the idea with the economic ministers, including Coordinating Minister for Economy Rizal Ramli, Transportation and Telecommunications Minister Agum Gumelar and Coordinating Minister for Political, Social and Security Affairs Bambang Susilo Yudhoyono.

He said the company is undertaking a study on which ports need to be upgraded and linked with the Tanjung Priok port, noting that in certain cases the company may have to develop new ports.

He declined to give details on how much it will invest in upgrading outer island ports.

Meredith said so far his company has spent $390 million in developing JICT, to upgrade the port which has resulted in increasing productivity by around 20 percent of the terminal's activity.