JakartaA Japanese company has been chosen to build and operate all three terminals at Kalibaru Port in North Jakarta, Indonesia, with the first one  expected to begin operations by the middle of next year.

Government-run port operator PT Pelabuhan Indonesia II (Pelindo II) made the partnership with Mitsui Co. Ltd. official with the signing of a formal agreement recently.

The two companies will establish a joint venture to operate the Kalibaru terminal. The port is being built to expand the capacity of Tanjung Priok Port.

The partnership will see Pelindo II with a 51 percent stake in the JV and Mitsui the rest.

Pelindo II president director Richard Joost Lino said he expects Mitsui to build and develop port facilities that will make Tanjung Priok Port, the country’s busiest, “equal to other ports in developed countries,” reports The Jakarta Post.

The first container terminal at Kalibaru will be 400 meters long when completed by the end of this year. It will then be expanded to double its length, the new undertaking scheduled to be completed in May next year.

The first terminal will have a capacity of 1.5 million 20-foot-equivalent units (TEUs) and cost about US$393 million, the investment to come wholly from Mitsui.

The two other terminals will also be constructed by the Japanese conglomerate and are expected to be completed in 2018, bringing an additional capacity of 4.5 million TEUs to Kalibaru.

Photo: Joel Wiramu Pauling

You May Also Like

Moody’s: Asian partners ‘biggest beneficiaries’ of TPP deal

The recent pact on the Trans-Pacific Partnership (TPP) trade agreement is credit positive for all 12 participating sovereigns, but especially for those in Asia,…

ICS publishes latest flag state performance table

The International Chamber of Shipping (ICS) has published the latest version of its annual Flag State Performance Table. The table indicates the performance of…

Lapeña: Drug controversy a “stage drama” possibly concocted by drug syndicates

Customs commissioner Isidro Lapeña pointed to drug syndicates as possibly behind allegations that the Bureau of Customs (BOC) let slip crystal methamphetamine (shabu) shipments…

Lapeña to BOC staff: Respond to all inquiries in 5 days

Philippine Customs commissioner Isidro Lapeña has reiterated to Bureau of Customs (BOC) officials the need to comply with the five-day mandatory period to respond…