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Jakarta Post

Tanjung Priok vows to reduce container shipment cost

News Desk (The Jakarta Post)
Jakarta
Mon, January 30, 2017

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Tanjung Priok vows to reduce container shipment cost A heavy-duty vehicle passes a cargo terminal at Kalibaru Port, Tanjung Priok, North Jakarta, in September 2016. (Antara/Widodo S. Jusuf)

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T Pelindo II has promised to make shipping containers out of Tanjung Priok more efficient in a bid to underscore the port’s status as an international hub.

The state-owned seaport operator would reduce the cost per container by up to Rp 1.5 million (US$112.49), PT Pelindo II president director Elvyn G. Masassya said on Monday.

“There will be some cargo consolidation. Large ships could stop there, and the logistic costs could compete with Singapore,” said Elvyn on Monday, as reported by tribunnews.com, adding that the cost reduction could amount to between Rp 1 million and Rp 1.5 million.

(Read also: Tanjung Priok Port sets dwell time benchmark)

Previously, exported goods destined for places like Japan or Taiwan would need to pass through Singapore, but in the future, Indonesia want to ship goods directly to such destination countries.

“Because of the hub status, the shipment of goods will be more efficient, particularly for goods from Java and Sumatra,” Elvyn said.

He explained that PT Pelindo II did not need to invest to upgrade Tanjung Priok’s status to that of an international hub, because both the facilities and the capacity already fulfilled hub requirements.

“We already have adequate terminals and equipment. We only need to coordinate with shipping companies to inform them that the cost of transit at Tanjung Priok will be lower,” he added. (bbn)

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