The ministry of transportation announced will carry out the development of the Patimban Port phase 2 in Subang, West Java, in January 2021 - Photo by the Ministry Office

JAKARTA (TheInsiderStories) – The ministry of transportation announced will carry out the development of the Patimban Port phase 2 in Subang, West Java, in January 2021. Total costs of one of the national strategic project is estimated up to Rp43.2 trillion (US$3.08 billion). The development is carried out in three phases and will be able to handle containers of 7.5 million TEUs in the final stage.

“The location is very strategic to develop center of industrial areas like Karawang and Subang. We also continue to complete the construction of access to the Patimban Port. Access to the Patimban Port from Pantura is currently almost 100 percent complete,” said the minister, Budi Karya Sumadi, during a virtual discussion, on Tuesday (11/17).

In the first phase, the consortium has build a container terminal with a capacity of 250,000 TEUs (twenty foot equivalent unit) and a vehicle terminal for 218,000 CBU (completely build-up) vehicles. For the first phase, the developer has spent Rp14 trillion and the phase needs an investment of Rp9.5 trillion.

For the second phase, the developer will build a container terminal with a capacity of 3.7 million TEUs and a vehicle terminal covering an area of 600,000 CBUs. The port will connected Jakarta, Tangerang, Bekasi, Karawang, and Subang. It can also be consolidated with Cirebon and Kertajati airport.

“In 2027, it is hoped that Patimban will become a large port and used for export activities of the automotive and logistics industry from Indonesia to foreign countries,” said the minister.

Currently, ten companies participating in the operators tenders, the Indonesian Port Business Entity Association reported on Oct. 16. The 10 entities are PT Indika Logistics Support Services, PT Samudera Terminal Indonesia, PT CTCorp Infrastruktur Indonesia, PT UC Services, PT Hasnur Jaya International, PT Hasnur Resources Terminal, PT Wahyusamudra Indah, PT Kaltim Kariangau Terminal, PT Waskita Karya Infrastruktur, and PT Pelayaran Tempuran Emas Tbk (IDX: TMAS).

Non-toll road access to the port has been done and is almost complete. The cost will be Rp1.12 trillion with total length of the access road is 8.2 kilometers (Km), consisting of 7.5 Km of the elevated road and 0.7 Km of grade. For the development of the port, the government has selected a consortium of five companies, including Japan’ Penta-Ocean Construction, TOA, Rinkai Nissan Construction, and Indonesia’s PT Wijaya Karya Tbk (IDX: WIKA) and PT Pembangunan Perumahan Tbk (IDX: PTPP).

Patimban Port was set to reduce heavy congestion at Tanjung Priok Port in North Jakarta that now shoulders most of the international trading activities. The project is part of President Joko Widodo’ infrastructure push to boost connectivity in the world’ largest archipelago of more than 17,000 islands, where logistics costs are high, and also an attempt to make the country a rival to Singapore as a transshipment hub.

South-east Asia’ largest economy jumped 17 places in the World Bank’ Logistics Performance Index 2018 to 46th position out of 160 countries but still lagged behind some of its Asean peers – Singapore (seventh), Thailand (32nd), Vietnam (39th) and Malaysia (41st).

So far, Indonesia has received JPY118.9 billion ($1.13 billion) loan from Japan, covering around 83 percent of the total costs of the first stage of the project. The government previously announced that 51 percent operatorship of the port will be in the hands of a local company, while foreign companies can retain the remaining stake.

US$1: JPY105.34

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