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Indonesia state-owned port operator PT Pelabuhan Indonesia II (Pelindo II), also knows as Indonesia Port Corporation (IPC), has selected Japanese conglomerate Mitsui as its partner to jointly operate the first container terminal at the new Kalibaru Port in North Jakarta.
The two companies will set up a joint venture to operate the terminal which is slated to begin operations by the middle of 2015. It will be the first of three container terminals to be built at the port, which is part of the expansion project at Jakarta's severely congested Tanjung Priok Port.
The agreement was signed on 19 April 2014 with IPC holding a majority 51 percent share in the venture and Mitsui the remaining 49 percent. 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.
Richard Lino, Pelindo II president director, stated:
IPC (Indonesian Port Corporation) appointed Mitsui as terminal operator because we believe Mitsui can give added value to the Indonesian port business. Mitsui can build and develop port facilities that will make Tanjung Priok Port equal to other ports in developed countries.
Construction works for the new terminal will be split into two phases. The first phase, expected to be completed by the end of 2014, 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 TEUs and cost about US$393 million, the investment to come wholly from Mitsui.
After the first terminal is completed, Mitsui will build two other container terminals with an additional capacity of 4.5 million TEUs, which is expected to be completed in 2018. The three container terminals are estimated to cost up to US$2.5 billion.