Indonesia state construction company PT Waskita Karya Tbk (WSKT) has hiked its holding by 5 per cent, taking its total stake to 20 per cent, in port operator unit PT Prima Multi Terminal (PMT) for Rp 9.15 billion ($653,571), the company said, in a statement.
Waskita has bought the additional stake from state-owned property developer PTPP, which held 30 per cent stake in the JV.
PTPP injected Rp52.20 billion, representing 30 per cent paid capital, in the new entity while Pelindo I took 55% and Waskita 15%. PMT provides port handling services for Kuala Namu port, Medan, North Sumatra.
PMT’s container terminal construction project needs an investment of Rp3.96 trillion. In the first phase, PMT would invest a sum of Rp1 trillion.
Pelindo I hopes to commence construction of the new terminal early next year and could start operating in the first half of 2016. The terminal will serve a number of companies to transport crude palm oil, according to company statement.
Both PTPP and Waskita also expect to see an additional income from the construction of the new terminal.
“Our participation in the joint venture is part of our strategy to expand our business,” PTPP said in a statement.
The government has targeted to improve Kuala Tanjung Port’s capacity to around 25 million 20-foot equivalent units (TEUs) by the end of 2030. Currently, the port has a capacity of 900,000 20-foot TEUs, helping to decongest the overcrowded Belawan Port that caters to state plantation firms PT Perkebunan Nusantara (PTPN) III and PTPN IV.
A number of companies, including PTPN III and multinational Unilever, will need more facilities at the terminal in line with their expansion in the future.
PTPN III and Unilever are currently developing oleo-chemical plants in the Sei Mangke Special Economic Zone, near the ports of Kuala Tanjung and Belawan.