CMA-CGM eyes int'l hub project in Batam
The government is studying a proposal from French giant shipping
and port management CMA-CGM Group for setting up an international
hub port in Batam, after several potential investors pulled out
from bidding for the project.
Transportation Minister Hatta Radjasa told The Jakarta Post
recently that CMA-CGM was the only investor that remained
interested in the project, which is estimated to be worth more than
Rp 2 trillion (US$215 million).
"We opened several bidding processes for the project but without a
satisfying outcome because most of the investors are not
interested. CMA-CGM is the only investor willing to take the
project, but we are still studying its proposal," he said.
Hatta said the government would need some time before granting the
project, because the would-be investor had requested certain
conditions, the approval of which was deemed difficult. One of the
conditions is a 50-year concession in managing the port.
CMA-CGM is also requesting a tax incentive as well as a request for
turning the port into a "free international port".
"The Office of the Coordinating Minister for the Economy will
decide soon whether to grant the company's requests. If we consider
them feasible, I guess the company may as well take the project
rather than leaving it wasted," said Hatta.
Should CMA-CGM agree to take the project, competition between ports
in the region will get stiffer since Singapore and Malaysia also
have international hub ports capable of making direct call
shipment.
As an industrial trade zone housing export industries with total
investments of more than US$11 billion, Batam only has a small port
in Batu Ampar, which is not qualified to accommodate mother vessels
nor to provide sufficient container management. JP/Rendi Akhmad
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