Abu Dhabi Port interested in managing Patimban Port's container terminal

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Abu Dhabi Port tertarik kelola terminal peti kemas Pelabuhan Patimban

28 November 2023

By: Euis Rita Hartati

 

Jakarta - Transportation Minister Budi Karya Sumadi said that Abu Dhabi Port has expressed their interest in managing the container terminal at Patimban Port that is located in Subang Regency, West Java.

During his visit to United Arab Emirates on Saturday (25/11/2023), the Transportation Minister met Abu Dhabi Port CEO Saif Al Mazrouei to discuss their cooperation on the management of the container terminal at Patimban Port.

Budi Karya said that, with Pelabuhan Patimban Internasional (PPI) that is the operator of Patimban Port, they were looking for a strategic partner that is capable of managing an international port and has a global network.

“PPI has received the cooperation proposal from Abu Dhabi Port. However, several aspects are still under negotiation. We are hopeful that these discussions will lead to an offer that benefits both parties,” Transportation Minister Budi said as reported by Antara on Saturday (25/11/2023).

Patimban Port plays a strategic role as the first supply chain port in Indonesia that is seamlessly integrated with nearby industrial estates. The Transportation Minister emphasised that the Indonesian government was fully committed to ensuring that Patimban Port will provide optimum benefits for the people and bolster the competitiveness of the nation.

The government will also accelerate the development of Patimban Port. They have completed the first phase that includes the vehicle terminal and the container terminal. The construction of the second phase is currently underway. The second phase will significantly increase the capacity of the vehicle terminal and the container terminal.

Previously, Class II Patimban Port Authority and Harbourmaster Office (KSOP) Head Dian Wahdiana said that additional projects in Patimban Port would be completed at the end of 2025. Starting from package 5 that increases the vehicle terminal’s capacity to package 6 that constructs the container terminal.

“I believe that Patmban will be completed on time. Even though it is slow, the progress of the loan from Japan is clear. For example, packages 5 and 6 are currently on track. In terms of the budget, everything is ready. I think that we will only use the budget next year. For now, we are using IP-577 and IP-583,” Dian said at Patimban Connection forum group discussion some time ago.

On this subject, Dian is extending an invitation to potential investors to invest in the 354-hectare back-up area at Patimban Port.

The area is planned to be divided into several zones. These zones will cater to a range of functions, including container stacking, warehousing, office spaces, distribution management, vehicle storage, public amenities, and green open spaces.

Meanwhile, Sea Transportation Director General of the Transportation Ministry Arif Toha Tjahgama said that the area could also be used by business players to sustain their business operation at Patimban Port.

“You can participate, invest, and conduct business at Patimban Port. Besides [the part of] Patimban that is currently under construction, around 300 hectares of back-up area is available to be used to support activities at Patimban. A large chunk of land is open for business,” Arif said.

There are several business potentials in the back-up area, including the storage of vehicle components, inventory management, assembly operations, spare part management, and warehousing for the fast-moving consumer goods (FMCG) sector.

On the other hand, Dian reckoned that demonstrations by locals at Patimban Port, Subang, West Java were influenced by non-government organisations (NGOs).

He mentioned that he attended meetings on Patimban Port almost every day. There are many topics discussed, such as coordination with contractors and communication with locals.

“Because NGOs like to encourage locals to hold demonstrations,” Dian revealed.

“However, we are staying humble by looking for the best solution. In the future, it will increase the economy of Patimban and Subang,” he continued.

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