CMA CGM warned over Batam project delay

The Indonesian government has warned France's CMA CGM to make immediate decision on its port project in Batam.


The government already gave CMA CGM two months extending the deadline until May to decide whether or not to continue with the US$470 million project to build a transhipment port in Batu Ampar, reported Asia Pulse.


Deputy transport minister Bambang Sunsantono said the government would announce its final decision in the middle of this year on the project.


The Batu Ampar port will be modernised to serve as a transhipment port for international container ships.


CMA-CGM won the tender in 2005 to build the port, but work has been delayed over disagreement on the 25-year time length for the concession. The government, however, has agreed to extend the time of the build, operate and transfer concession to 50 years through an option to extend considering the size of the investment.
(Source:http://en.portnews.ru)