S. Kalimantan to impose toll on ships sailing Barito River

S. Kalimantan to impose toll on ships sailing Barito River

BANJARMASIN, South Kalimantan (JP): South Kalimantan
Transportation Office head H. Ardiansyah here said on Monday that
a toll would be imposed on some vessels sailing the Barito River
in the south of Kalimantan Island.

The plan, currently being discussed by lawmakers in the
provincial legislative council of South Kalimantan, would only be
imposed on large cargo ships, he said.

"Meanwhile, the carrier ships with a capacity of (less than)
one thousand tons and the commuter (passenger) ships will be
exempt from the ruling," Ardiansyah told The Jakarta Post on
Monday.

For container ships and coal transport ships, the local
administration plans to charge 10 U.S. cents per ton and 25 U.S.
cents per ton respectively.

Ardiansyah explained that the local administration had to
charge the fee in U.S. dollars because income would be used to
finance the river dredging project.

The project is being carried out by the China Harbor
Engineering Company (CHEC) from the People's Republic of China.

All cargo ships bound for and departing the Trisakti seaport
have to use the Barito River.

Appointed by the South Kalimantan administration, CHEC has
come under increasing criticism due to its poor performance.

Ardiansyah said the toll income would be allocated to three
areas: 60% would go to CHEC; 15% to the local administration; and
25% to operational costs.

It is hoped that under such a distribution scheme, the Chinese
investor will break even within the next four years. CHEC has
spent $200 million on the project.

Ardiansyah said that criticism targeted at CHEC was unfounded.
"The investor has completed dredging a 13.5 kilometer segment of
the Barito River," he said.

Ardiansyah said that criticism arose after many vessels ran
aground in the river. "Those vessels became stranded because they
cruised over the dredged area. Clear signs have been installed,
directing vessels to the appropriate route."

He said that CHEC was scheduled to hand the project over to
the local administration in the middle of this month.

"This means that the bylaw regarding the river toll should be
completed soon." (32/08)