State-run operator PT Pelabuhan Indonesia II (Pelindo II) has opted for Japanese firm Mitsui Co. Ltd. to partner the company, also know as Indonesia Port Corporation (IPC), in the joint operation of the first container terminal at North Jakarta’s Kalibaru Port.
The respective parties are expected to form a joint venture to operate the new terminal, scheduled to open in mid-2015, as part of the extension of Tanjung Priok Port, which includes the build of a further two terminals in the coming years.
According to the Jakarta Post, a shareholders agreement was signed in Jakarta on Saturday (April 19th) with IPC holding a majority 51 percent share in the venture and Mitsui the remaining 49 percent.
“IPC appointed Mitsui as terminal operator because we believe Mitsui can give added value to the Indonesian port business,” said Richard Joost Lino, IPC president and director.
“Mitsui can build and develop port facilities that will make Tanjung Priok Port equal to other ports in developed countries.”
Lino added that the joint venture to operate the new terminal was a continuation of the memorandum of understanding (MoU) signed by the two companies in Tokyo at the start of the year. The MoU stated that IPC had agreed to let Mitsui operate the Kalibaru terminal.
Construction works for the new terminal will be split into two phases. The first phase, expected to be completed by the end of the year, will see a 400-metre quay built, while the second, slated for completion in May 2015, will see this extended to 800 metres. The first terminal will boast an annual capacity of 1.5 million TEU, according to Lino, who added that Mitsui will be responsible for the build of the other two terminals, which will extend Tanjung Priok’s capacity by an additional 4.5 million TEU come 2018.
The three terminals will require a combined investment of up to US$2.5 billion.