Indonesia to construct 3 new ports, aims to be shipping hub in 5 years

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Teluk_Bayur_HarbourThe Indonesian government is planning to build three new sea ports starting late next year as part of a long-term strategy to transform the Southeast Asian country into a maritime axis, with the port projects to be funded partly by issued bonds.

The sites for the proposed ports are Tanjung Api-Api, South Sumatra; Sorong, West Papua; and West Kalimantan.

State-run port operator PT Pelabuhan Indonesia II (Pelindo II) said it will issue US$1 billion in bonds in April 2015 to raise funding for the port development, with construction slated to start in the third quarter of the coming year.

Pelindo II president director Richard Joost Lino said the ports are scheduled for completion in about two-and-a-half years.

The government’s maritime axis goal involves a sea toll and modern fishing ships, as well as the development of 22 sea ports in the country within five years.

Pelindo II will seek external funds to finance the projects, such as through loans, bonds, or partnerships, Lino said.

Pelindo III reaps 27% profit growth

Meanwhile, another state-owned port operator, Pelindo III, saw its profit grow 27 percent in the first nine months of the year on the back of rising throughput at the Indonesian ports it manages.

Net income expanded to IDR1.28 trillion (US$106 million) for the period January to September from IDR1.01 trillion year-on-year, while revenue surged 15 percent to IDR4.23 trillion.

Growth was achieved with the increase in the number of port calls by foreign ships and stronger export and import activities at Pelindo III’s container terminal in Surabaya and Semarang, said Pelindo III.

Edi Priyanto, head of public relations at Pelindo III, said the company has raised $500 billion from bonds sold in September, which will be used to fund its Java Integrated Industrial Port Estate project in East Java and improvement plans for the ports in Tanjung Emas, Semarang, and Banjarmasin.

Photo: Gombang