Complementing Tanjung Priok, When Hard Choice Falls to Cilamaya_27 February 2015- IndII

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27 February 2015 Source : Bisnis Indonesia Keyword : Category : Ports / Sea Transport File : Saat Pilihan Sulit Jatuh ke Cilamaya.pdf COMPLEMENTING TANJUNG PRIOK: When Hard Choice Falls to Cilamaya Bisnis Indonesia, 25 February, 2015, Page 31, Section: Transportasi & Logistik By Hadijah Alaydrus [email protected] It all began when Japan and Indonesia agreed to build the Port of Cilamaya, Karawang, West Java, during the 3 rd meeting of the Steering Committee to discuss the Metropolitan Priority Area for Investment and Industry (MPA), which was held in Tokyo, Japan in October 2012. At that time, Indonesia, which was represented by then Coordinating Minister for Economic Affairs, M. Hatta Rajasa, accepted the Committee's decision about the Master Plan Study for five projects in Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek). The Committee also approved the Master Plan Study to be carried out by Japan International Cooperation Agency (JICA), which would contain the development plans of 45 infrastructure projects and 18 accelerated projects, including the Port of Cilamaya. The study for this project was conducted by JICA from May 2011 and, within it, the agenda to use private funds has been put in, using the public private partnership (PPP) scheme. In late 2013, the 4 th Steering Committee [Meeting] between Japan and Indonesia set five major projects, namely the mass rapid transit (MRT) of Jakarta, Jakarta Sewerage System, Expansion of Soekarno‐Hatta Airport, and the National Academic Cluster Project (NARC). Minister of Industry at that time, M.S. Hidayat, pushed for the acceleration of the construction of Cilamaya Port, West Java, due to the significant increase in the concentration of machinery, automotive and electronics industries in Karawang and Cikampek, West Java. The increase was triggered by the growth of investments from Japan, South Korea and China in the surrounding areas. Hidayat also said that a feasibility study was already done by the Ministry of Transportation and investors from China, Japan and Korea would be willing to finance. Bisnis notes that the feasibility study of Cilamaya Port explains the matters of follow‐up action from three things. First, the Ministry of Transportation (Kemenhub) reported the need for adjustment of spatial layout and land use in the regional spatial planning (RTRW) of Karawang Regency, which includes the allocation of industrial areas and accesses to the Cilamaya Port under the coordination of Coordinating Minister for Economic Affairs. Second is the matter of toll road and railway accesses to the port. Kemenhub described the follow‐up action on the matter of access by building further coordination with the Coordinating Ministry for Economic Affairs and the Ministry of Public Works in order to for the toll road access and railway line to the Port of Cilamaya to be accommodated in the regional spatial planning. Third is the issue of the gas pipeline owned by Pertamina, which intersects with the location of the port; this has been followed up with a special study conducted by an independent consultant. NEED ADJUSTMENT Based on the study, Kemenhub is agreeable for the construction of Cilamaya Port to proceed, with a note for the need

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Transcript of Complementing Tanjung Priok, When Hard Choice Falls to Cilamaya_27 February 2015- IndII

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    27February2015Source:BisnisIndonesiaKeyword:

    Category:Ports/SeaTransportFile:SaatPilihanSulitJatuhkeCilamaya.pdf

    COMPLEMENTINGTANJUNGPRIOK:WhenHardChoiceFallstoCilamayaBisnisIndonesia,25February,2015,Page31,Section:Transportasi&[email protected]

    It all began when Japan and Indonesia agreed to build the Port of Cilamaya, Karawang, West Java, during the 3rd

    meetingoftheSteeringCommitteetodiscusstheMetropolitanPriorityAreaforInvestmentandIndustry(MPA),whichwasheldinTokyo,JapaninOctober2012.

    At that time, Indonesia,whichwas representedby thenCoordinatingMinister forEconomicAffairs,M.HattaRajasa,acceptedtheCommittee'sdecisionabouttheMasterPlanStudyforfiveprojectsinJakarta,Bogor,Depok,Tangerang,andBekasi(Jabodetabek).

    TheCommitteealsoapprovedtheMasterPlanStudytobecarriedoutbyJapanInternationalCooperationAgency(JICA),whichwouldcontainthedevelopmentplansof45infrastructureprojectsand18acceleratedprojects,includingthePortofCilamaya.

    ThestudyforthisprojectwasconductedbyJICAfromMay2011and,withinit,theagendatouseprivatefundshasbeenputin,usingthepublicprivatepartnership(PPP)scheme.

    In late2013, the4thSteeringCommittee[Meeting]betweenJapanand Indonesiaset fivemajorprojects,namelythemassrapidtransit (MRT)of Jakarta, JakartaSewerageSystem,ExpansionofSoekarnoHattaAirport,andtheNationalAcademicClusterProject(NARC).

    MinisterofIndustryatthattime,M.S.Hidayat,pushedfortheaccelerationoftheconstructionofCilamayaPort,WestJava, due to the significant increase in the concentration of machinery, automotive and electronics industries inKarawangandCikampek,WestJava.

    TheincreasewastriggeredbythegrowthofinvestmentsfromJapan,SouthKoreaandChinainthesurroundingareas.HidayatalsosaidthatafeasibilitystudywasalreadydonebytheMinistryofTransportationandinvestorsfromChina,JapanandKoreawouldbewillingtofinance.

    BisnisnotesthatthefeasibilitystudyofCilamayaPortexplainsthemattersoffollowupactionfromthreethings.First,the Ministry of Transportation (Kemenhub) reported the need for adjustment of spatial layout and land use in theregionalspatialplanning(RTRW)ofKarawangRegency,whichincludestheallocationofindustrialareasandaccessestotheCilamayaPortunderthecoordinationofCoordinatingMinisterforEconomicAffairs.

    Second is thematterof toll roadand railwayaccesses to theport.Kemenhubdescribed the followupactionon thematterofaccessbybuildingfurthercoordinationwiththeCoordinatingMinistryforEconomicAffairsandtheMinistryofPublicWorksinordertoforthetollroadaccessandrailwaylinetothePortofCilamayatobeaccommodatedintheregionalspatialplanning.

    ThirdistheissueofthegaspipelineownedbyPertamina,whichintersectswiththelocationoftheport;thishasbeenfollowedupwithaspecialstudyconductedbyanindependentconsultant.

    NEEDADJUSTMENTBasedonthestudy,KemenhubisagreeablefortheconstructionofCilamayaPorttoproceed,withanotefortheneed

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    of adjustments in relation to the locationof oil and gas facilities of PTPertamina, improvementof the studyby theconsultantandalltherisksfromtheprojectbeingtheresponsibilityofIndonesia.

    Withsomanystudiesalreadydone,itisexpectedthatafurtherstudythatwillbeconductedbyBappenas,KemenhubandBPPT[AgencyfortheAssessmentandApplicationofTechnology],underthecoordinationofCoordinatingMinistryforMaritimeAffairs,shouldnottakelongtofinish,becausealltherelevantpartiessimplyneedtobuildontheexistingresults.

    CoordinatingMinisterforMaritimeAffairs,IndroyonoSoesilo,statedthatthefurtherstudywillonlytakeonemonth.

    TransportationMinister, Ignasius Jonan,asserted that theconstructionofCilamayaPort is leftentirely to theprivatesector.

    In fact,MinisterofTransportationhasalsoapprovedashiftof theports location, if indeed it isnotpossible [forthecurrentlocationtobebuilt]becauseoftheoilandgaspipelineownedbyPTPertamina.

    Kemenhub will support the smooth running of the port project albeit the matters of shipping channel, navigationfacilitiesandenvironmental impactassessment(Amdal)havenotbeentargetedbecausetheconstructionhasnotyetbegun.

    IftheportdevelopmentinCilamayaistoreducethebuildupinTanjungPriokPortandreducelogisticscosts,thefollowupstudyshouldbeseriouslydone.

    Even if the results of this followup study suggest a shift of the ports location, a backup location should also beprepared.

    Inthe3rdmeetingof theSteeringCommittee, itwasemphasised that theundertakingofMPAs flagshipprojectsbetargeted for completion in 2020. Predictingwhether the constructionof Cilamaya Portwill be completedon time isdifficultpriortothecompletionofthefollowupstudynextmonth.

    However,thegovernmentisadvisedtodevelopthecapacityoftheexistingnearbyport,namelythePortofCirebon.

    Moreover,PresidentDirectorofPTPelabuhanIndonesia(Pelindo) II,RichardJoostLino,statedthatthecompanyhaspreparedfundsforthefirststagedevelopmentofCirebonPort,amountingtoRp1.6trillion.

    ThisBUMNplanstodeepentheshippingchannelto10mwithawidthof150m,aswellasextendingtheberthingdockoftheporttoonekilometre,withadepthof14m;thesewillbecompletedin2017.

    Inaddition,reclamationworksatthePortofCirebonwilltransformitsareainto50ha,ortwicethesizeoftoday.

    Notonly that, the locationof theport,which is not far fromKertajatiAirport andalreadyhas its own railway lines,makesaccesseasy.

    So,whilewaitingforthePortofCilamaya,thegovernmentcanstartdevelopingCirebonPort,whichhaslongbeenoutofsight.

    ProfileofCilamayaPortProject,Karawang

    PhaseIRequiredfunding:Rp23.9trillionStagesofconstruction:Containerterminalwithacapacityof3.75millionTEUsCarterminalwithacapacityof1,030,000CBUOilJettyRoroterminalShippingchannelwithadepthof17mLWS.Scopeofwork:BreakwaterOuterseawall/revetmentDredgingReclamation

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    OiljettyAccessroadsandbridgesDockContaineryardProcurementofloadingandunloadingequipmentsOthersupportingfacilities

    PhaseIIRequiredfunds:Rp10.6trillionScopeofwork:ContinuedconstructionofthecontainerterminalConstructionofaccessroadsandbridgesReclamationProcurementofloadingandunloadingequipmentsOthersupportingfacilities

    Source:MinistryofTransportation,processed

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