AKR looks for partner to build $130 million fuel storage
Wednesday, May 30 2007 - 01:34 AM WIB
JSX-listed fuel distributor and chemical producer AKR Corporindo Tbk. has allocated US$130 million to build fuel storage terminal with a capacity of 420,000 kiloliters in Tanjung Priok, North Jakarta.
AKR Corporindo’s president director Haryanto Adikoesoemo said in Jakarta Tuesday that the company is now seeking an strategic partner to realize its plan to build the fuel storage terminal.
The construction is scheduled to start in the third quarter of this year and to be completed in the first quarter of 2009. It will be done in two stages, with the first stage costing between $60 million and $70 million with a capacity of 230,000 kiloliters, he said.
The company is also developing logistics facility outside Jakarta, such as the one in Surabaya, Kalimantan, Medan, Lampung and Bali, with a total additional capacity of 100,000 kiloliters. Besides, the company will also raise the number of units of transportation means and barges and make all of kits terminals to work automatically.
According to Haryanto, the company’s logistics facility expansion program needs an investment of $32 million and the program is scheduled for completion in March 2008 at the latest.
He said that besides from company’s money, the funds for the logistics development project would also come from a syndicated loan amounting to some $20 million.
Meanwhile, the company’s head of corporate finance and investor relations V. Suresh said that the planned construction of a logistic facility in Tanjung Priok was aimed to anticipate the government’s plan to issue a regulation that would scrap subsidized fuel oil in 2010.
“The policy has driven the entry of foreign players of oil and gas business, including Petronas and Shell to Indonesia. We also intend to take advantage of the opportunity by building a fuel storage and other logistics facilities,” he said. (godang)