Jakarta New Port built to boost 'competitiveness'

Jakarta New Port built to boost 'competitiveness'

Damar Harsanto, Jakarta

Jakarta Governor Sutiyoso claimed that Jakarta New Port in East
Ancol, North Jakarta, would not affect the operations of two
container terminals in the adjacent Tanjung Priok Harbor.

"The reason we are building the new port is to boost
competitiveness between both ports. The Tanjung Priok operator
charges high fees, but the vessels queue for days," he said on
Thursday.

Sutiyoso, who officiated the groundbreaking ceremony of the
new port on Tuesday, said the construction of the port was
necessary to compete with other ports in the region, following
the establishment of the ASEAN Free Trade Area in 2003.

The city administration will secure 5 percent of shares in the
new US$500 million commercial port.

The new port will be built by local developer PT Marindo
Bahtera Development in cooperation with the administration and
the Indonesian Navy's Western Fleet. The construction of the new
port will be completed in six years, it should be operational in
2010.

However, the project has been opposed by state-owned port
operator PT Pelabuhan Indonesia II (Pelindo II), which argues
that the site of the new port belongs to the company.

"The project will be built on a 500-hectare site that we have
prepared for the construction of an integrated terminal since
four years ago. It is slated to be operational in 2012," said
Pelindo II spokesman Hendra Budhi.

He said Pelindo II and partner PT Manggala Krida Yudha had
reclaimed some 15 hectares of land in East Ancol and would
proceed with reclaiming another 40 hectares this year.

"Why did the administration not talk about its plan with us?"
Hendra said.

Pelindo II director of marketing and business development
Soepadi said his company would seek clarification from the
central government and the city administration over the project.

Despite the protest, Sutiyoso insisted that the new port
project was in line with Law No. 34/1999 on the authority of the
city administration.

"The law stipulates that the Jakarta administration has the
authority to manage its own seaport, thus the project complies
with the law," he said.

Article 31 of the law states that the administration has
authority over special areas, including seaports, airports,
forested areas, industrial compounds, tourist destinations, toll
roads and islands.