Wijaya Karya Works on Port Project in Batam

Indonesia Finance Today - 28/06/2012

Listed construction company PT Wijaya Karya Tbk (WIKA) will work in the Batau Ampar North Port expansion project in Riau Islands, with contract value of Rp 349.9 billion (US$ 37.09 million). Construction of the project will start in June 2012 until December 2014.

Natal Agrawan, Corporate Secretary of Wijaya Karya, said the company will work on civil construction of the port, which includes the construction of a new 600 meters port, dredging, procurement and installation of crane rails.

"The works also include the reparations of existing port, high mast lighting, cable, hydrant and clean water installation. This project is owned by the Batam Concession Area Agency, and funded by the State Revenue,” he said.

Natal said that the port expansion project will increase the loading and unloading capacity of 600,000 TEUs. The overall loading/unloading capacity of the port will reach around 800,000 TEUs.

Wijaya karya will also work on the double track Semarang-Bojonegoro railway packages 50 and 58 at Rp 122.8 billion. The project is under contract by the company since April 2012. In March 2012, the company obtained similar contracts for packages 9 and 10 at Rp 191.2 billion.

With the two new contracts, Wijaya Karya obtained Rp 5.65 trillion new contracts in May 2012, from the 2012 target of Rp 16.52 trillion. The company projects its total 2012 book order will reach Rp 26.59 trillion, with carried over contract from 2011 of Rp 15.57 trillion.

The projects include the Tanjung Batu gas power plant (60 megawatt) at Rp 5,430 billion, new rail track and rail track bridge project in Central Java at Rp 285 billion and the rehabilitation and construction of Sabo Dam in Sleman (Yogyakarta) package I at Rp 240 billion.

The company is also working on the procurement and installation project of MOP FENI Antam refinery at Rp 323.2 billion, and the JICT Tanjung Priok project worth Rp 101.4 billion.

Meanwhile, listed construction company PT Adhi Karya Tbk (ADHI) obtained a new contract of Rp 241.45 billion from PT Aneka Tambang Tbk (ANTM). The contract is for the ferronickel port and jetty construction project in East Halmahera, Maluku.

Kurnadi Gularso, Corporate Secretary of Adhi Karya, said that the work scope for the ferronickel project consists of solid jetty, LCT jetty and liquid jetty. “The project will take 300 calendar days to be constructed,” he said. He also said that this project is one of the company’s carried over project from 2011.