China firm to finance port project in East Java

A Chinese investor has agreed to finance construction of a port in Madura, East Java, in cooperation with the state port operator Pelindo III, a cabinet minister said, according to Antara news agency.

Transport Minister Freddy Numberi said China's state company China Harbour Engineering and PT Pelindo III will build the container terminal.

The Socah port constitutes an expansion of the Tanjung Perak port of Surabaya and it will help ease congestion in the country's second largest port, Freddy said.

He gave no figure for the investment but the project is estimated to cost hundreds of millions of US dollars.

The new port, which is expected to be operational in 2020, will be able to accommodate 5,000 TEU capacity container ships.

Freddy said China Harbour also is interested in taking part in the construction of railway projects in the country including in Kalimantan, Sumatra and Kalimantan.

The company is eyeing the US$1.11 billion railway project to link Jakarta city centre and the Soekarno Hatta Internaitonal airport, he said.

Chinese ambassador Zhay Qiyue said Chinese investment in Indonesia is expected to rise 50 per cent from 2009.
(Source:www.cargonewsasia.com)