State port operator PT Pelindo II, which handles the country's largest port - Tanjung Priok, plans to spend Rp 1.2 trillion (US$121 million) on investments until the end of the year to boost the capacity of its ports and make their operations more efficient.
"To reduce the number of ships queuing for handling services at ports, we will buy more heavy equipment to boost our port productivity," Pelindo II president director Richard Lino said Friday at a signing of a memorandum of understanding ceremony between the company and the Jambi administration in Jakarta.
In addition to Tanjung Priok, Pelindo II also manages other ports in 12 areas across the country such as Sunda Kelapa in Jakarta, Banten, Palembang in South Sumatra and Teluk Bayur in West Sumatra.
Richard said the ports were often so packed with ships waiting for services that vessels often had to stay there for up to four days. Additional equipment will hopefully reduce their stay to two days only.
"We also need to build some more wharfs for those ships," Lino added.
Besides boosting port services, the company is now busy developing two ports in Jambi to support business activities that have spread to the province's rivers.
The Jambi government has allocated Rp 500 billion towards the project.
However, Richard refused to comment on Pelindo's share in Jambi's port investments.
"We have agreed to develop the two ports and some routes on the Batanghari river. We are targeting to complete the project by 2012," Richard said.
Jambi governor, Zulkifli Nurdin, said the port and its facilities were vital because the majority of Jambi's economic activities depended on the river.
"In 2009, we allocated Rp 300 billion from the national budget and Rp 200 billion from the provincial budget to develop port infrastructure," Zulkifli said.
Pelindo II also plans to build other ports in West Kalimantan and Jakarta.
"We will build international harbors in East Ancol, North Jakarta, but we need more support, including from the excise and customs office," Richard said.
The company is expecting to finish the project in 2014.
Jakarta Governor Fauzi Bowo had previously mentioned the plan, saying the harbor would be connected to the city's land transportation system.
He said the Jakarta port plan was similar to that of other international cities such as Yokohama in Japan, Rotterdam in Holland and Singapore. (naf)