Pelindo II appointed to build Kalibaru

STATE port corporate PT Pelabuhan Indonesia (Pelindo) II is appointed to build Kalibaru terminal, but the government is committed to finance bridge and dredging works

Coordinating Minister for Economic Affairs, Hatta Rajasa, said that the assignment of Pelindo to implement the Kalibaru project has been decided using the mechanism of general meeting of shareholders exercised by the Minister of State-Owned Enterprises (BUMNs).

“We have discussed this in a meeting. At the meeting, a design change was deemed necessary. Minister of Transportation stated that to pursue a 2014 completion, it had to be carried out as an assignment (with Pelindo being the Kalibaru project implementing entity),” said Hatta.

Hatta said that the assignment of Pelindo as the implementing entity of the Kalibaru construction project is in accordance with Presidential Regulation (Perpres) No. 54, and does not violate the existing regulations. BUMNs in managing their assets, he said, are also permitted to work on the expansion of their assets, including Pelindo with its Port of Tanjung Priok.

Hatta said that in implementing the construction, of course Pelindo cannot work by itself. Its construction works will be tendered out.

Kalibaru terminal construction will be carried out to support the movement of goods in the Port of Tanjung Priok. The construction is planned in three phases. Phase I will build an elongated area of ​​75ha off the coast opposite the Jakarta International Container Terminal 1 and the Koja Container Terminal.

Meanwhile, phase II construction will be carried out to the west covering an area of ​​49ha. Lastly, there will be the construction of a petroleum terminal in the eastern part of the phase I terminal of Kalibaru.

Initially, Kemenhub targeted the Kalibaru container terminal to begin construction in early December 2011, through a tender process with a target operational date in 2014.

In 2011, Kemenhub opened a tender pre-qualification for the construction and operation [of the terminal] and four consortiums and one company were declared eligible in the process, but the tender process has yet to produce a winner.

Ready to work hard

Corporate Secretary of PT Pelindo II, Rima Novianti, said company is ready to work hard if it does get the task to build the terminal. According to Rima, in addition to adding container terminal capacity at Tanjung Priok, which is already urgent, the port needs to catch up with other countries so that national logistics sector can compete.

“But, we (Pelindo) until now (January 2) have not received an official letter from the government related to the assignment to carry out the terminal’s construction.”

However, she said, the So far, PT Pelindo II has set aside Rp 11 trillion or equivalent to US$ 1.28 billion after the BUMN secures a 10-year financing facility from PT Bank Mandiri Tbk.

Chairwoman of the Indonesian National shipowners’ Association (INSA), Carmelita Hartoto, said that INSA has never questioned who the government assigns to build the Kalibaru container terminal.

Shipping operators only requires that the terminal be built soon in anticipation of increased goods export and import shipment activities at the Port of Tanjung Priok.

Echoing the view, President Director of Maersk Indonesia Jakob Friis Sorensen said construction of the terminal should begin soon because the country’s main shipment gateway, Tanjung Priok port, was heavily congested.

“If the port will not be operational by early 2014, congestion at Tanjung Priok would impact the national economy as 60 to 70 percent of the country’s exports and imports pass through the port,” he said.

Govt commits Rp 3 trn for bridge, dredging

The Transportation Ministry has said that they will provide Rp 3 trillion (US$330 million) in assistance for work on a bridge and dredging project at North Jakarta’s Kalibaru seaport.

“We have recently proposed Rp 3 trillion to the Finance Ministry to construct Kalibaru’s bridge and work on the dredging project,” the Ministry’s sea transportation director general Leon Muhammad said.

Should the Finance Ministry reject the proposal, the Transportation Ministry would discuss the construction with the National Development Planning Agency (Bappenas), the Investment Coordinating Board (BKPM) and the Coordinating Economic Ministry, he added.

“We will seek a public-private partnership plan if we do not secure the Rp 3 trillion allotment from [the Finance Ministry],” he added.

Leon said that his Ministry expected to begin construction in the first quarter of 2012.

The total budget for construction of Kalibaru is estimated to be about Rp 11.75 trillion.

The Kalibaru terminal, expected to begin operating in 2014, would have a container handling capacity of 1.9 million 20-foot equivalent units (TEUs).

According to Pelindo II data, container traffic had reached 5.8 million TEUs by the end of 2011, up by 23 percent from 4.7 million TEUs in 2010, while the port’s current container volume capacity is only 5 million TEUs.

Pelindo II has been mulling short-term strategies to handle Tanjung Priok’s overcapacity problems.

Among the strategies is investing $250 million until July to buy new container loading cranes comprising of two quay container cranes (QCC) and 11 luffing container cranes (LFF).

In addition, the operator cooperated with state-run PT Telkom through Indonesia’s Logistics Community Service (ILCS) to create an integrated online platform to help streamline shipping traffic.