Pelni reviews offer to purchase German ship

Jakarta (ANTARA News) - State-owned shipping operator PT Pelayaran Nasional Indonesia (PT Pelni) is reviewing an offer to procure a German ship, Pelni President Director Elfien Guntoro stated.

"The purchase is intended to replace their old fleet. However, the proposed price is not financially feasible," Guntoro revealed after a meeting here on Monday.

Pelni had earlier signed a memorandum of understanding (MoU) with Meyer Werfl to buy both passenger and cargo ships. The MoU was signed during President Joko Widodos visit to Germany in April 2016.

A Meyer Werfls ship is priced at some 70 million euros. Meanwhile, Pelni is seeking to buy a vessel worth 50 million euros.

"Meyer Werfls ships are too good," he emphasized.

Pelni was seeking to purchase three ships to replace those that have been operated for more than three decades.

He remarked that Pelni is looking for some alternative solutions with regard to the price. The tariff for ships in Indonesia is still low.

"We may look to cooperate with local ship builders to develop vessels. The local ship builders may jointly venture with other foreign constructors," he pointed out.

However, the ship specification standards should be followed properly in Indonesia.

The new ship will operate on the Jakarta-Surabaya-Makassar-Baubau-Ambon-Sorong route.

"We are still reviewing several choices to get a reasonable price," he remarked.(*)