TRANSPORTING LIGHT TO THE NATION

New Priok Port: A New Paradigm for Indonesia

6thAnnualGlobalStrategicInfrastructureLeadershipForum|NewYorkFebruary,2013

R.J.LINO

PresidentDirector

IndonesiaPortCorpora7on

Indonesia
Strong Indonesian GDP Growth

CAGR (%)

8.0%

5.4%

6.0%
4.0%
2.0%

4th largest
population
in the world
>250 million

(2003-2010)

3.4%

Strongth GDP growth

2001
2003
2005
WorldGDPGrowth

2007
2009
2011
IndonesianGDPGrowth

External Sector Balance Sheet

Strong fiscal position

ExternalDebt:Public

ExternalDebt:Private

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

Total debt at 26% of GDP

1996

Vibrant culture,
open democratic
society

200%
150%
100%
50%
0%

Indonesia

Indonesia lies in the heart of the worlds future global

trade
> 70% of world sea container flows are Asia-related

Domestic trade routes are vibrant and fast-growing

Inter-island trade has been growing with 37% CAGR in the

last 5 years

Inter-island trade has increased ~5x from 638m Tons in 2006

to 3,153m Tons in 2011

IndonesiaTodayandin2030
Indonesia Today

and in 2030

16th largest economy in the world

7th largest economy in the world

45 million members of the consuming class

135 million members of the consuming class

53% of population in cities producing 74% of GDP

71% of population in cities producing 86% of GDP

55 million skilled workers

113 million skilled workers needed

$0.5 trillion market opportunity in consumer

services, agriculture and fisheries, resources, and
education

$1.8 trillion market opportunity in consumer

services, agriculture and fisheries, resources, and
education

Tanjung Priok: Trading Heart of Indonesia

ContainertracatTanjung
Priok(TEUs)
8

ContainertracatTanjung
Priok(%)
100%
80%
60%
40%
20%
0%

6
4
2
2000200220042006200820102012

2008

2010

2011

Serves Greater Jakarta Indonesias capital and one of the worlds largest cities
(Population >20 million)
Port of Tanjung Priok is the largest port in Indonesia and ranks as one of the top 20
ports in the world
Acts as the International Gateway of Indonesia (over 60% of national trade)

New Priok Development

16.0 m approach channel
12.5m TEU of new capacity
Product Terminals
New Road Access

Access Road

Logistics
Center

New Priok Development

PHASE1
DEVELOPMENT

:20122017
ESTIMATEPROJECTCOST :US$2,500Million
LENGTHOFBERTH

:4000M
DEPTH

:16MLWS
FirstOpera7onContainerTerminal(CT1)willstartin2014
ContainerTerminal
AREA
CAPACITY
Oil&GasTerminal
AREA
Logistics
CAPACITY
Center

:3Terminals

:132Ha
oad
cce:4.5MILLIONTEUs/Year
ss R
A

:2Terminals

:48Ha

:10.0MILLIONM/Year

PHASE2
DEVELOPMENT

:20182023
ESTIMATEPROJECTCOST :US$2,200Million
LENGTHOFBERTH

:4000M
TOTALCYAREA

:300Ha
DEPTH

:20MLWS
FirstOpera7onContainerTerminalPhase2willstartin2021
ContainerTerminal
AREA
CAPACITY

:4Terminals
:300Ha
:8.0MILLIONTEUs/Year

Capex of Phase 1 and Phase 2

Item

Capacity

ContainerTerminals
ProductTerminals
TollRoad(oshore)
TollRoad(onshore)
IndustrialParkArea
PowerStaPon
OtherServices
Total

1.5mTEU/year
500,000cbm
asrequired
asrequired
asrequired
asrequired
asrequired

Investment
(US$m)*

Number

460.00
365.00
220.00
40.00
200.00
150.00
100.00

Phase 1: 2012 to 2017

Phase 2: 2018 but subject to continuing market demand
Container Terminal 1: Fast Track, Operations in 2014
Product Terminal 1: Fast Track, Operations in 2016

Totalinvestment(US
$m)*
7
2
1
1
1
1
1

3,220.00
730.00
220.00
40.00
200.00
150.00
100.00
4,660.00

Consensus Container Demand Forecast

14,000

1,000 TEU

12,000

Phase 2

Forecast Container
Handling (Demand)

10,000
8,000
6,000
4,000
2,000

2012
ExisPng

2014
CT1

2015
CT2

2016
CT3

2017

2018

2019

2020

2021

ForecastContainerHandling(Demand)

The Product Terminal Gap

90,000
80,000

1,000 t

70,000
60,000
50,000
40,000
30,000
20,000
10,000

ReneryProduc7on

CrudeProduc7on

TransportConsump7on

2012

2011

2010

2009

2008

2007

2006

2005

2000

1995

1990

1985

1980

1975

1971

TotalConsump7on

Economic Impact
Provides critical infrastructure
Meets demands of domestic and international investors
Allows large container ships to call directly at the largest market in SEAsia
Changes capability from 5,000 TEU to 18,000 TEU
Removes cost of transhipment in Singapore
Reduces sea freight costs for imports and exports
Provide strategic tank storage for major population and industrial centre
Opens Indonesian/Java market to Aframax Tankers
Allows safe break down of import cargoes to serve smaller islands
Alleviates chronic traffic congestion in existing port
Increases container truck turns to Bekasi (Industrial Area) from 1 to 4 every day
Reduces domestic logistics costs
Stimulates economy
Could add 2% to GDP growth
Creates 60,000 direct jobs and has multiplier effect through the economy

10

Who finances what

Others

Superstructure

Infrastructure

11

US$710 M

US$1,320 M

US$2,630 M

Others

Financed by toll road and/or power plant operators

Financed by other stakeholders interested in
industrial park, etc.

Superstructure
Financed by container and product terminal
operators
Financed by asset based financiers (equipment
financing, construction contractors, etc.)
Infrastructure
Financed by IPCs equity contribution: IPC to raise
debt to partially finance its equity contribution
Financed through project financing (e.g. banks,
ECAs, MLAs, etc.) using the project vehicle (SPV)
Financed by asset based financiers (equipment
financing, construction contractors, etc.)

Project structure
1. Bankable CA + Presidential Decree

Common
infrastructure

Shareholders
Agreement / Sublease Agreement
2. Set up SPV = DevCo
Develop, finance and construct the
project and to operate the
common infrastructure

CTs & PTs

Superstructure

CTn

12

GOI/DGST

CT2

Sub-lease Agreement
SPVs = DevCo
4. Sub-lease to Op Cos
to operate the
terminals

CT1

PT1

CT Op Co Holding
3. Set up holding or
operating companies
for CTs/PTs

PT2

PTn

PT Op Co Holding
5. Sale of stakes in CTs
and PTs to operators

IPC

All Infrastructure included in Dev Co

Concession
Agreement

IPC

Financing structure
Construction of common infrastructure to be financed through
bank debt and an equity contribution from IPC
Debt financing
Banks

IPC

Equity financing

SPVs/DevCo

Cash

Construction of
common infrastructure

Banks
Debt financing
Lease
payments

Terminal
operators

Equity financing

Cash

OpCos
5 terminals

Banks

Debt financing

Terminal equipment will be

financed through bank debt and
equity
13

Procurement of
equipment

What is needed?
Container Terminals
Operators & investors
Container handling equipment suppliers
Cranes
Fork Lifts Head Trucks

Operating systems, accounting & information systems

Training & support
Tank Terminals
Operators & investors
Tanks contractors
Monitoring & instrumentation providers
Operating systems, accounting & information systems
Training & support
Others
Toll road operators
Power systems suppliers
Finance
Equity investors
Bond purchasers
Debt providers
Equipment finance
14

Development Program: Phase 1

Overview of key operation start up dates
2013
CT1

CT2

2014
4Q2013
construction
starts

2015

4Q2014
construction
starts

PT2

2018 buildup (1.5m

TEU p.a.)

4Q2017
COD
(1m TEU
p.a.)

1Q2016 COD
(500m3
capacity)

3Q2015
construction
starts

Note
1
Commercially Operational Date (COD) period represents first complete quarter of operations

15

2017 2025

2025
onwards
Lease ends in
2044

2Q2016
COD
(1m TEU
p.a.)
3Q2016
construction
starts

3Q2014
construction
starts

2017

2017 buildup (1.5m

TEU p.a.)

4Q2014 COD
(0.8m TEU
p.a.)

CT3

PT1

2016

Lease ends in
2045

2020 buildup (1.5m

TEU p.a.)

Lease
ends in
2047

Lease ends in
2044

1Q2017
COD
(500m3
capacity)

Lease ends in
2045

Key Dates
Container Terminal 1 Operations Contract
Preferred Bidder signs Memorandum of Agreement today
Container Terminal 2&3 Selection Process
Registration open during this conference
First round non-binding bid March 2013
Second round RfP July 2013
Award by end Q4 2013
Product Terminal 1&2 Selection Process
First round RfP April 2013
Shortlist and second round RfP August 2013
Award by end Q3 2013
DevCo Equity and Debt
Closing Q3 2013

16

Key Contacts: www.indonesiaport.co.id

R J Lino
President Director of IPC the Project Sponsor
Email: rj_lino@indonesiaport.co.id
Supported by
Dani Rusli
CEO of Development Company
Email: dani@indonesiaport.co.id
Retno
Head of Strategy Bureau, IPC
Email: retno@indonesiaport.co.id
Oliver Goetz
Rothschild, Financial Advisor
Email: oliver.goetz@rothschild.com
David Wignall
DWA, Commercial Advisor to IPC
Email: David@DavidWignallAssociates.com

17