State port operator Pelindo II says the investment needed to build a container port in North Jakarta is 55 percent beyond the target flagged by the government, Jakartaglobe reports..
Pelindo II was given the contract to build the terminal in North Kalibaru, Tanjung Priok, this week after a tender process involving five private bidders was abruptly halted the previous week.
The government was set to issue a Rp 10 trillion ($1.1 billion) contract to the company, but on Thursday its president director, Richard J. Lino, said Pelindo II had estimated the cost of the project at between Rp 16.5 trillion and Rp 17 trillion.
Richard said the discrepancy emerged because the government and the company were using different blueprints, resulting in assumptions that failed to match up.
He said Pelindo II planned to build three container terminals with a combined capacity of 4.5 million 20-foot equivalent units (TEUs) for intermodal shipping containers.
It will also build a 300-meter-wide sea lane that would allow two-way traffic for ships, he said.
“In the government’s design, it was assumed that the project would only have one container terminal with a capacity of 1.9 million TEUs,” Richard said.
He said the government also only planned for a 150-meter-wide sea lane, allowing only one-way sea traffic.
Richard said Pelindo II was now waiting for a presidential decree giving it the contract.
The government earlier announced that it was scrapping the decision to use five short-listed bidders for its prequalification tender process.
Once the presidential decree is issued, Richard said, Pelindo II can proceed with the groundbreaking for the project.
He said Indonesia could not afford to postpone the Kalibaru project if it wanted to keep up with container traffic.
Tanjung Priok, the country’s biggest port, had reached capacity and was in danger of being overwhelmed, according to Richard. Container traffic at the port last year reached 5.6 million TEUs, he said, exceeding its capacity of 5 million TEUs.
Pelindo II was given the contract to build the terminal in North Kalibaru, Tanjung Priok, this week after a tender process involving five private bidders was abruptly halted the previous week.
The government was set to issue a Rp 10 trillion ($1.1 billion) contract to the company, but on Thursday its president director, Richard J. Lino, said Pelindo II had estimated the cost of the project at between Rp 16.5 trillion and Rp 17 trillion.
Richard said the discrepancy emerged because the government and the company were using different blueprints, resulting in assumptions that failed to match up.
He said Pelindo II planned to build three container terminals with a combined capacity of 4.5 million 20-foot equivalent units (TEUs) for intermodal shipping containers.
It will also build a 300-meter-wide sea lane that would allow two-way traffic for ships, he said.
“In the government’s design, it was assumed that the project would only have one container terminal with a capacity of 1.9 million TEUs,” Richard said.
He said the government also only planned for a 150-meter-wide sea lane, allowing only one-way sea traffic.
Richard said Pelindo II was now waiting for a presidential decree giving it the contract.
The government earlier announced that it was scrapping the decision to use five short-listed bidders for its prequalification tender process.
Once the presidential decree is issued, Richard said, Pelindo II can proceed with the groundbreaking for the project.
He said Indonesia could not afford to postpone the Kalibaru project if it wanted to keep up with container traffic.
Tanjung Priok, the country’s biggest port, had reached capacity and was in danger of being overwhelmed, according to Richard. Container traffic at the port last year reached 5.6 million TEUs, he said, exceeding its capacity of 5 million TEUs.