CMA CGM eyes Indonesian hub port project
CMA CGM is now the only party interested in setting up an international hub port at Batam in Indonesia. Other potential investors failed to put forward bids for what is a US$218m project.
There are inherent difficulties with the bid which requires certain conditions that the Indonesian government might find difficult to approve.
Of these, the most controversial is the 50-year concession period that CMA CGM is seeking. The company is also looking for significant tax incentives, whilst at the same time seeking ‘free international port’ status for the facility.
If permission is given for the project to go ahead, Batam would be in direct competition with both Singapore and Malaysian ports for direct calls from major lines. The only existing import-export facility in Batam is currently at Batu Ampar, although present infrastructure is inadequate for deepsea vessels.
Related Articles
CONTAINER & CARGO HANDLING
TERMINAL OPERATIONS
EQUIPMENT