- Category: Investment
- Published on 23 September 2013
- Written by Administrator
- Hits: 1993
The Riau Island Province is an ideal location to base facilities that require substantial space and proximity to maritime shipping lanes such as shipbuilding and heavy industry.
The maritime sector continues to be an important segment of the Riau Island Province economy and numerous opportunities exist in this sector. Shipbuilding and repair currently accounts for 5% of manufacturing firm in Batam, Bintan, and Karimun, and has one of the highest labor productivities per worker.
Numerous facilities exist in Batam, including three shipyards and a training center owned by Dry docks Southeast Asia. Another 118- hectare facility is owned by Indonesia’s shipping tycoon Oentoro Surya’s Surya Prima Bahtera heavy industries. Upon completion, these facilities will integrate all aspect of repair and shipbuilding including engines, machines and electrical repairs.
Other Batam-based shipyards includes PT. Batamec, PT. Pan United Shipyard Indonesia and Batam Expresindo Shipyard. There are also numerous smaller service and repair facilities as well as parts manufacture and distribution firms.
Among the more notable facilities geared toward heavy industry is one operated by J. Ray McDermott, established on Batam in 1970, one of first foreign investors on island. This facility has four decade of experience executing engineering, procurement of supplies, construction and installation projects.
This range from traditional bottom-founded facilities to floating hulls and associated topsides. Since these operations began, the yard has fabricated more than 600 structures weighing a total of 649,456 tons.
This facility serves the Asia-Pacific oil and gas industry, and has exported products as far as the gulf of Mexico, Europe, West Africa and Indian sub-continent. The facility includes fully equipped prefabrication shops, two pipe rolling mills, and dedicated carbon steel and exotic materials pipe shop.
A new shipbuilding facility was recently constructed in East Bintan and others include PT. Bintan Offshore, which is operated by Singapore’s Keppel Corporation, Bintan Shipbuilding and Engineering Pte. Ltd., and APTIC.
There are also facilities on Karimun, where it is the largest manufacturing industry. The Shipyard industry in Karimun has been thriving with six companies currently providing ship repair and shipbuilding services, due to is maritime oriented environment and deep waters.
PT. Karimun Sembawang Shipyard for example, has been operating since 1996 and has repaired more than 200 vessels for customers in Singapore, Greece, Korea, Japan, United Kingdom, Norway and the United States.
Source : Board of Investment and One Stop Services Riau Islands Province