Indonesia's Transportation Ministry is optimistic that the construction of the Patimban Seaport in Subang (West Java) can commence in June 2018 after the Idul Fitri celebrations have completed. Meanwhile, the port operator tender is scheduled to be opened in July 2018. The USD $3.1 billion Patimban seaport is envisaged to become a key international seaport in Indonesia with a 7.5 million twenty-foot equivalent units (TEU) capacity.
Once the Patimban seaport is operating it would somewhat relieve busy traffic at Jakarta's Tanjung Priok port which is Indonesia's busiest port (handling over half of the nation's total international trade). The Patimban seaport will specifically focus on the handling of goods from the industrial zone in Karawang in West Java (particularly automotive products).
Indonesian Transportation Minister Budi Karya Sumadi is optimistic that the land acquisition process for the Patimban seaport can be completed within the next three to four weeks. The seaport needs 356.23 of hectares for the terminals and backup area, while another 15.79 of hectares are needed for the access road. For the construction of this road the Transportation Ministry needs to coordinate with the Ministry of Public Works and Housing.
Land acquisition is one of the most notorious bottlenecks in the development of (big) infrastructure projects in Indonesia as landowners tend to ask very high prices. This often leads to a delay in construction (sometimes requiring a decision from the court) or the complete cancellation of the project.
Besides the main road to Patimban seaport there will also be developed a toll road to the seaport. A consortium consisting of Jasa Marga, Surya Semesta Internusa, Daya Mulia Turangga, and Jasa Sarana has delivered its intention to develop this toll road.
If going according to schedule, then the first phase of the Patimban project is expected to be completed by March 2019. In this first phase the port will have a 800,000 TEU capacity and a vehicle terminal that can handle 360,000 units per year.
Last year the Indonesian government signed an agreement with the Japan International Cooperation Agency (JICA) for a soft loan related to the funding of the Patimban seaport. In the first phase a 118 billion yen loan will be disbursed (approx. USD $1 billion).
The operator of the Patimban seaport will be a consortium that consists of Indonesian and Japanese companies (with a 51-49 percent share composition). Indonesian companies that showed interest to join the tender include Pelindo II, Astratel Nusantara, and Samudera Indonesia. Reportedly there are six Japanese companies that want to join the tender.
Indonesia's Largest Seaports:
(in million TEU)
Source: Investor Daily