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 Witular