PAL to build ship for Merauke

State-owned shipbuilder PT PAL Surabaya signed on Thursday in Surabaya a memorandum of understanding to build a commercial ship for Rp 36 billion (about US$4.4 million) for the Merauke regency of Papua.

Merauke Regent John Glube Gebze said the 4,200 dead-weight-ton Caraka Jaya III passenger ship would be used for commercial operations to transport people within the regency, which is located on the southeastern tip of the province.

"Of the 23 districts in Merauke, only eight are accessible by land. The rest can only be reached by rivers or the sea.

"This means water transportation is vital for the regency's economy," he said after signing the agreement.

The vessel is the third ordered by the regency from PAL. The company has built and delivered to the regency a tanker named Yeltmatsu and the passenger ship Maroke Ehe.

The regent said PAL would complete the construction of the new ship within 18 months.

"In line with regional autonomy, we want to open new markets in our area, including several towns close to Papua New Guinea," he said.

PAL's director for general engineering and maintenance, Subekti, said that last year the shipbuilder also received orders from several other regional governments, including the Cilegon regency administration and the Central Java provincial government, which ordered two vessels and one vessel, respectively.

The company also received an order last year from state port operator Pelindo 11 to build three tug boats, he said. --JP