[Jakarta, Indonesia – 10 December 2009] – PT Jakarta International Container Terminal (JICT) and IFC (International Finance Corporation), the member of the World Bank Group focused on private sector investments in emerging markets, made history today when they signed a US$70 million Loan Agreement to partially fund a US$ 160 million expansion of JICT’s container terminal at Tanjung Priok Port, Indonesia’s largest port.
IFC’s loan comprises a US$30 million loan for its own account, repayable over 7 years and a syndicated loan from HSBC of up to US$40 million, repayable over 5 years. The loan proceeds will support JICT’s 1 million TEU expansion through investment in 4 additional Quay Cranes, 18 Rubber Tyred Gantry Cranes, 30 Head Trucks and Chassis together with the construction of 12 hectares of additional container yard plus associated roads, parking areas and administrative facilities.
Tanjung Priok has an important role in the current efforts of the Government of Indonesia to significantly expand Indonesia’s economy, particularly the export sector, over the next 5 years. The huge increase in efficiency and productivity has been achieved over the last 10 years since the time of JICT’s establishment. Upon the completion of JICT’s expansion together with the completion of the new Jakarta Outer Ring Road now under construction, Indonesia will have in Tanjung Priok a container terminal of a truly international standard.
The loan signing ceremony was also attended by, HPH Group Executive Director James Tsien who said, “In addition to the US$ 70 million of loan finance being provided by IFC and HSBC, JICT is funding the remaining US$ 90 million of this US$ 160 million expansion project out of its own funds, thereby clearly demonstrating JICT’s principal shareholders, HPH and, its highly valued partner, Pelindo II’s long-term commitment to the success and future of JICT”. He went on to say that “As a result of the investments already made this year, I am delighted to say that JICT is now able at deploy up to 6 Super Post Panamax Quay Cranes on the biggest vessels calling at JICT today. This represents a level of service and productivity being provided only by the biggest ports operated worldwide by the HPH group”.
Richard J. Lino, President Director of Pelindo II, Indonesia’s state port operator, explained how the expansion will contribute to the country’s growth and the well-being of its citizens. He said, “The expansion of JICT’s facilities will deliver improvements in service levels that will benefit port users including shipping lines, exporters, and importers. The project will also create direct and indirect employment opportunities and boost revenue for the Government of Indonesia.”
IFC East Asia and the Pacific Director Karin Finkleston noted that the World Bank Group is happy to support these goals. She said, “As the world’s largest archipelago nation, Indonesia relies heavily on an efficient and well run sea transportation system to compete economically. We are pleased to partner with the Jakarta International Container Terminal as part of IFC’s commitment to improve infrastructure and develop the private sector. IFC’s investment will not only strengthen Indonesia’s port sector but also attract private sector investment in infrastructure, which has lagged far behind the needs.”
JICT has already made great strides in terms of enhancing the productivity of the port. According to JICT Finance Director Nano Aryono, this year alone, as part of the expansion project, JICT has already expanded its yard, purchased new equipment, and completed key technological upgrades. Notably, JICT has successfully installed the HPH Group’s proprietary nGen terminal management system to improve efficiency.