"The construction is still hampered by some problems including the existence of a bridge and shallow sea," Transportation Minister Budi Karya Sumadi said here, Saturday.
To be carried out by state port operator PT Pelindo IV, the project will be funded with funds through state capital injection
General Manager of Pelindo IV, Suparman, said that a license related to environmental impact analysis would be issued next week by the Ministry of Environment and Forestry.
Of the total investment of Rp936 billion, more than half or Rp635 billion is the government assistance while the rest comes from Pelindos internal budget.
Through bidding, Pelindo has decided the winner for the first phase of construction of a pier.
The construction of Kendari New Port is expected to finish in 2018. It is expected to be an upgrade of the current port in Kendari, Bungkutoko, which has yet to meet the standard and as part of the sea toll development.
"Bungkutoko was not designed for large ships and thats why we need to operate small ships to distribute goods and commodities. If the new port is completed it will surely cut operational costs,"Suparman said.
This new port which has a capacity of 250 thousand TEU per year, is also anticipated to serve international export and import trades as well as national distribution.(*)
Editor: Heru Purwanto
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