Indonesia has plans to upgrade the Port of Batam with a 1.2 trillion rupiah (S$115 million) financing from state port operator Pelindo I. This decision comes after Malaysia’s aspiration to develop a multi-million-dollar project off Johor’s Port.
The plan for the Port of Batam aims to improve cargo handling, in order to enhance its competitiveness. The port will be able to accommodate three new mobile harbour cranes and 12 terminal tractors.
In the meantime, sources report that Pelindo I will procure container cranes able of loading and unloading goods for larger ships.
Commenting on the occasion, Vice President Jusuf Kalla said that the port currently has many unnecessary costs, including paying for container inspection fees conducted in Singapore.
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Indonesia considers Batam as an alternative shipping and manufacturing hub to Singapore, which has a potential to draw US$60 billion in new investment, Bloomberg reported. Until now, Batam has attracted around US$20 billion of investment, since Jakarta started promoting it as an industrial zone.
This development comes after Malaysia’s plan to create a multi-million-dollar project at Johor’s Tanjung Pelepas port. This aims to facilitate ships to transfer their cargo to other ships without the need to dock at the berths.
The project could cost as many as US$180 million, and will cover an area of 1,200ha, located in the Strait of Johor near Tuas.
It aspires to be the world’s biggest ship-to-ship transfer hub, with an ability to accommodate up to 30 vessels at one time, and 9 million tonnes of petroleum products.
It is expected to be completed in two years.
