AKR seeks bank loans to finance fuel terminal

IDX-listed fuel distributor and logistics firm PT Aneka Kimia Raya (AKR) Corporindo Tbk is seeking bank loans worth up to US$70 million to finance the company's fuel and chemical terminal project, Bisnis Indonesia reported Wednesday.

"We are negotiating the loan with a number of foreign banks. We hope the lending facility could be finalized in the middle of 2008," AKR's corporate secretary Suresh Vembu said in Jakarta.

The fuel terminal will be operated by PT Jakarta Tank Terminal (JTT), a joint venture between AKR and Dutch Royal Vopak

JTT will be 51 percent owned by AKR and the balance will be held by Vopak.

JTT will build a fuel and chemical terminal facility in the port of Tanjung Priok, Jakarta to meet the growing demands in Jakarta, Banten and West Java.

The facility, which will be built on a 15.5 hectares of area, will have storage capacity of 450,000 cubic meters, 250,000 cubic meters of which will start operations in mid-2009. The second phase is expected to be completed in 2012.(*)