PTPP & Waskita to Operate Port

PT Pembangunan Perumahan (PTPP IJ, Neutral, TP: IDR2,590) together with PT Pelabuhan Indonesia I (Pelindo I) and Waskita Karya (WSKT IJ, Not Rated) will form a joint venture of PT Prima Multi Terminal to operate Kuala Tanjung port in Medan, Sumatera that will have an estimated capital requirement of IDR580bn. Pelindo I will have 55% stake in the port while PTPP will have 30% and WSKT will have 15%. The JV was formed in order to support the operation of liquid bulk terminal in Kuala Tanjung. The joint venture will further boost PTPP’s experience and confidence in port projects as well as operation. We believe this may also boost PTPP’s chance in getting future port-related contract.