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You are here: Home » National News » Roadways» Toyota and Mitsubishi hope to run container port near Indonesian car plants

Toyota and Mitsubishi hope to run container port near Indonesian car plants

27 May 2017 | Indonesia
 

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Toyota Motor Corporation and Mitsubishi Corporation are among the leading bidders to operate Patimban port in West Java, Indonesia, that is currently under construction and being developed by the Indonesian government with funding from the Japan International Cooperation Agency (JICA).

The port is expected to start operations in 2020. At full build out, it will have a capacity of 7.5 million Twenty Foot Equivalent Unit (TEU), not far short of Tanjung Priok port's current capacity of eight million TEU.

Patimban port is regarded as key to the operations of the two major vehicle manufacturers since it is located only a two-hour drive from the Cikarang industrial complex on the outskirts of Jakarta, where both car makers have plants.

Apart from helping to divert some volumes from the main seaport at Tanjung Priok in North Jakarta, Patimban port will also feature a special terminal for importing and exporting motor vehicles. Both Toyota and Mitsubishi have previously said that they intend to transform Indonesia into their primary regional car export base.

However, they still face the usual problems in Indonesia, as laws cap foreign port ownership at 49%, thus necessitating a complicated and oft tricky tie-up with a local partner before they can formally bid. Meanwhile, the writing already appears to be on the wall.

Indonesian Transportation Ministry Director General of Sea Transport Tonny Budiono said, "From Indonesia, only Pelindo II has shown interest in bidding for the port management contract.”

   
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