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12 December 2016

Pelindo I, III to operate new ports next year

Upbeat about the progress of development projects, state-owned port operators Pelindo I and Pelindo III say they are ready to launch new ports next year. 

Pelindo I said it was optimistic about the ongoing construction pace of its Kuala Tanjung multipurpose port in the Malacca Strait, North Sumatra, and expected it to begin operating in the second quarter of next year at the latest. 

“We are still constructing Kuala Tanjung Port and it is now 60 percent completed,” Pelindo I finance director Farid Luthfi said recently.

For the port development, Pelindo I needs around Rp 3 trillion (US$225 million) in a cash injection, 70 percent of which was derived from syndicated loans, Luthfi added. 

Set to become one of the world’s largest ports, Kuala Tanjung Port in resource-rich Batubara regency is a multi-year project that is being executed in four phases. 

It is estimated to cost Rp 37 trillion in total to complete the entire development. 

Once finished, the port could serve as an international shipment hub as it will be able to host large vessels and could rival Singapore’s largest port for shipments of various commodities, such as aluminum to Europe.

The multipurpose port, which is designed to host liquid bulk cargoes, such as palm oil, is the first phase of the overall project to be followed by the development of an industrial estate, a container port and a residential areas in the later phases. 

Apart from Kuala Tanjung Port, Pelindo I also plans to build facilities at Belawan and Sibolga ports in North Sumatra, Dumai and Perawang ports in Riau and Malahayati Port in Aceh, which will be funded by proceeds from its recent bond issuance. 

Meanwhile, Pelindo III said it expected to operate a tourist port in Banyuwangi, East Java, which is in the final stage of construction. 

“I hope in the middle of next year it can be used for cruises and yachts,” Pelindo III finance director Saefudin Noer said.

The Banyuwangi port is one of the projects the firm is working on in potential tourist areas, along with Benoa in Bali and Labuan Bajo and Kupang in East Nusa Tenggara. 

In addition to tourism ports, Pelindo III is currently developing five of 24 ports included in the government-backed maritime highway project, slated to connect ports from the archipelago’s westernmost Sabang to its easternmost Merauke with a goal to cut logistics costs and spur economic growth. 

Saefudin said Pelindo III hoped to finish the development as soon as possible. 

“The Semarang container terminal is ready, while multipurpose Teluk Lamong Port’s construction is in the first phase,” he said.

To develop its ports, Pelindo III needs up to 5 trillion annually, partly funded by a syndicated loan from three state lenders — Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) — and global bonds of $500 million offered in 2014. 

As one of the banks providing syndicated loans, Bank Mandiri disbursed both loans and syndicated loans to Pelindo worth Rp 7.84 trillion in the first 10 months. 

The funds went to Pelindo I, II, III and IV for the construction of maritime highway ports, the improvement of existing ports and equipment procurement. 


Source: http://www.thejakartapost.com/news/2016/12/09/pelindo-i-iii-operate-new-ports-next-year.html-0