Java ports to challenge Singapore: minister
THE COMBINATION of Tanjung Priok Port in North Jakarta and the planned Patimban Port in Subang, West Java, will significantly increase Indonesia’s capacity in cargo ship accommodation, a minister said.
“The combination of Patimban and Tanjung Priok will make Indonesia able to compete with Singapore,” said Transportation Minister Budi Karya Sumadi after a discussion on the project in Jakarta on Thursday.
He said the two seaports would have to team up and not compete with each other to make Indonesia cargo service competitive.
Currently, Tanjung Priok’s loading capacity of 6 million 20-foot equivalent units (TEUs) is only 20 per cent of Singapore’s port.
Meanwhile, Patimban Port is designed to have a container capacity of 1.5 TEUs once it is partially completed in 2019 and 7.5 million 20 TEUs by 2027.
On Tuesday, the Japan International Cooperation Agency (JICA) announced it was ready to sign a loan agreement with the government to finance the project. JICA senior representative in Indonesia Muraoka Hiromichi said his agency was waiting for the government to proceed with the project. The port will be suitable for automotive cargo, considering that the location is close to automotive factories in Cikarang and Karawang, West Java, Budi added.
“Once fully completed, Patimban will be able to accommodate around 600,000 cars,” said Budi, adding that the groundbreaking of the project would be held early next year.
The total project is estimated to cost 43 trillion rupiah (Bt109.7 billion) and the first phase of its construction will cost 17 trillion rupiah.