Krakatau Steel to upgrade Banten Port for IDR 735 billion
The Jakarta Globe reported that the port subsidiary of state controlled steel maker Krakatau Steel plans to build a 600 meter long dock at Cigading port in Banten.
The Krakatau Bandar Samudera project is estimated to cost IDR 735 billion. It is intended to serve ships carrying production output from a JV between Krakatau Steel and South Korea’s POSCO.
Mr Irvan Kamal Hakim CEO of Krakatau Steel said construction of Dermaga 6 dock is expected to be completed in December 2013, earlier than the previous target date of February 2014.
KBS expects the presence of Dermaga 6 dock to help it boost the handling capacity of its ports to 25 million tonnes per year by 2017, from currently 10 million tonnes.
Mr Irvan said that “Dermaga 6 should be capable to serve vessels with 200,000 dead weight tons.”
Mr Irvan said that KBS would not only build the dock, but also the road that connects Cigading port to the Krakatau POSCO industrial park.
Mr Zamhari Hamid president director of KBS said that the Dermaga 6 dock will be equipped with a conveyor line with a capacity of 3,000 tonnes per hour as well as two gantry ship unloader cranes with a capacity of 1,500 tonnes per hour.
Krakatau POSCO, which is 70% owned by POSCO and 30% by Krakatau Steel, is spending USD 6 billion to build integrated steel mills in Cilegon.
Construction is divided in several phases. The first is expected to be completed in 2013, with a planned steel production capacity of three million tons annually. The capacity is set to double in the second phase. The entire project is expected to create 173,000 jobs during the construction phase and 63,000 once production begins.
Krakatau, Indonesia’s largest maker of steel, will have the option to increase its stake to 45% after the factory is completed.
In January 2012, Mr Fazwar Bujang, the previous president director of Krakatau Steel, said that Krakatau POSCO planned to set up 23 new subsidiaries to provide a variety of products and services to the JV.
Krakatau’s net income fell in the first half of 2012 amid increasing production costs and foreign exchange losses. In the first half of 2012, Krakatau Steel posted IDR 107 billion in net income as compared to IDR 1.1 trillion in the same period a year earlier. Revenue, however, grew to IDR 11 trillion for the period, up by 31% YoY.
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