Dubai port expected to invest in Tanjung Api-Api KEK

"Dubai Port does not want to start from zero . It wants KEK running before it enters. Whereas we want it to be the pioneer to motive other foreign investors to invest in the KEK," Governor Alex Noerdin said.
Palembang, S Sumatra (ANTARA News) - The South Sumatra provincial administration said it hopes Dubai Port Authority Corporation would not cancel its plan to invest in the Tanjung Api-Api (TAA) Special Economic Area (KEK) and in the port of Tanjung Carat, Banyuasin, South Sumatra.

South Sumatra Governor Alex Noerdin was worried with the latest statement of the operator of the Port of Dubai that it would invest in the KEK only after it is fully completed.

"Dubai Port does not want to start from zero . It wants KEK running before it enters. Whereas we want it to be the pioneer to motive other foreign investors to invest in the KEK," Alex said here on Friday.

He said the provincial administration has also asked the central government to help persuade Dubai Port to go ahead with its investment plan in TAA .

"Actually everything has been done to persuade Dubai Port. Even the president has brought the proposal to Dubai port during his visit to Saudi Arabia. We also has tried to convince Dubai port when its representative visited South Sumatra in March, 2016. But it is not as easy as expected," he said.

Alex said for South Sumatra the TAA KEK is a dream that has not come true over the past years.

IF TAA KEK is fully implemented the port of Tanjung Carat of South Sumatra would break to the ranks of first class port cities in Asia including Singapore.

"TAA KEK would occupy 4,045 hectares including Tanjung Carat reclamation land of 2,015 hectares . Now it is in the process of land clearing," he said.

The plan is the KEK would have coal gasification plant, power plant, coal liquefaction plant, fertilizer factory, cement factory , tire factory , crude palm oil processing plant, oil refinery and downstream petrochemical factory.

TAA is strategically located in the middle of the trade route leading to Europe and other Asian countries. It would be a threat to Singapore when it starts operation.

State-owned port operator Pelindo II has said it wants to develop the port of Tanjung Carat as part of the Tanjung Api Api KEK development program.

Pelindo II Chief Executive Elvin G. Massayssa said he would coordinated with South Sumatra governor to accelerate development of the port.

"If necessary we would propose the issuance of a presidential decree that the process of development could implemented soon," Elvin has said.

He said Pelindo II already carried out feasibility study on the capacity of the port . The capacity is to be around 1.5 million Twenty-Foot Equivalent Unit (TEU) iin the first phase.

Tanjung Carat Terminal development in South Sumatra initiated by PT Pelabuhan Indonesia (Pelindo) II is predicted to cost USD 3.3 billion investment.

Corporate secretary of Pelindo II Hambar Wiyadi the first phase of expansion of the port would cost US$1.2 billion and the second phase US$2.2 billion.

The first-phase of expansion will include development multipurpose terminal, container terminal, as well as dry and liquid bulk terminals.

President Joko Widodo said the port would be included in the program of sea highway (sea toll) program. (*)

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