Marga Mandala Sakti Increases Tangerang-Merak Toll Road Capacity
Indonesia Finance Today - 05/07/2012
PT Marga Mandala Sakti in 2013 will commence the construction of an extra lane at the Tangerang-Merak toll road in Banten, particularly at the 8 kilometer Cikupa-West Balaraja segment, to add to the 2 lanes the toll road currently has.
Wiwiek D Santoso, President Director of Marga Mandala Sakti, said the project is a follow-up on the widening of the Bitung-Cikupa segment. “With Cikupa-West Balaraja road widening project, which is 39 kilometers long, the Tangerang-Merak toll road, up to West Balaraja, will have three lanes starting next year,” he said.
According to Wiwiek, the project is in anticipation of potential gridlocks due to the estimated increase in traffic volume after PT Jasa Marga Tbk (JSMR) added another lane for the Jakarta-Tangerang toll road from three to four lanes in 2011.
“In addition, the project is launched to meet the government’s rule that obliges the development of a new lane if the capacity of a road has reached 80 percent. But it is more to anticipate the robust increase in vehicle volume heading towards the Merak Harbor,” he said.
Marga Mandala Sakti targets transaction volume and revenue from the Tangerang-Merak toll road to increase by 10 to 15 percent in 2014, in line with the increased capacity.
The Cikupa-West Balaraja project was planned in 2008 and is expected to be completed in 2014. Development will cost Rp 160 billion. “The road widening project will be mentioned in our 2013 budget. The project bid out will commence in late this year, so we can start the works by 2013,” he said.
Marga Mandala Sakti has allocated Rp 300 billion (US$ 32.1 million) for its capital expenditure this year. Rp 196 billion will be used for reconstruction works and the remaining sum will be used to improve services at the 73 kilometer toll road.
This year, the company will also add transaction lanes at the Cikupa and West Balaraja toll road gateways and install 20 new monitoring cameras at 20 points along the said toll road. Reconstruction work has increased its estimated funds need for lane construction works from Rp 700 billion to Rp 900 billion.
“Our funds demand has increased from our initial estimation because of the additional reconstruction works this year. The fund gap will be covered through additional bank loans and capital participation from our parent company,” he said.
Adityawarman, President Director of PT Jasa Marga Tbk (JSMR), said the toll roads developer will build an elevated lane at the inner city toll road along Cibubur-Cawang-Kuningan-Semanggi in 2013, after it obtains an approval from the Toll Road Regulatory Agency (Badan Pengatur Jalan Tol/BPJT).
The new lane will increase the toll road’s capacity by 30 to 35 percent. “The budget details will be determined after the study is completed this mid-month,” he said.