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Pelindo II to lure more international cargoes
State-owned port operator PT Pelindo II is aiming to manage a bigger volume of international container shipments at its busiest hub Tanjung Priok port in Jakarta in the next few years, including through time- and cost-saving services
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tate-owned port operator PT Pelindo II is aiming to manage a bigger volume of international container shipments at its busiest hub Tanjung Priok port in Jakarta in the next few years, including through time- and cost-saving services.
Pelindo II president director Elvyn G. Masassya said that as of 2016, Pelindo had handled 6.2 million twenty-foot equivalent units (TEU) of containers, nearly half of the national container volume of 13.7 million TEUs, mostly in Tanjung Priok port.
“Our vision to turn Tanjung Priok port into a transhipment port is not just an illusion. We already have a roadmap to be a world-class port,” he said on Tuesday.
The company seeks to consolidate local goods from Java, Kalimantan and Sumatra Island in the port before shipping them overseas. The port is also set to welcome imported items from certain regions.
Elvyn said Pelindo II saw the potential to boost the container volume in three phases between 2017 and 2020, when Tanjung Priok port is slated to become a world-class port.
In the first phase running from this year to next year, the company aims to tap into potential cargo throughput totaling 1.4 million TEUs from Indonesia to East Asian countries, the United States’ West Coast and North Europe. The US West Coast itself already handles 624,000 TEUs of containers annually.
Furthermore, in the second phase running from 2018 to 2019, Pelindo II plans to further expand into the US East Coast and Australia, which have a potential shipment of 2.61 million TEUs of containers each year. That will be in line with its move to consolidate cargoes from its branches in addition to Tanjung Perak port in Surabaya, East Java and Tanjung Mas port in Semarang, Central Java.
“Lastly, if we consolidate all cargoes, we can get an extra cargo throughput totaling 3 million TEUs in the third phase,” Elvyn said.
Elvyn also boasted the efficiency Pelindo II could provide to shipping companies when holding transhipment in Tanjung Priok port, including a seven-day reduction in transit time, as well as US$100 per TEU in costs saved compared to its competitors Singapore and Malaysia.
As an initial step to realize its multi-year plan, Pelindo II has welcomed a ship run of 10,000 TEUs by French shipping Group CMA CGM to travel directly from Jakarta to Los Angeles and Oakland, the US.
Pelindo II also said that Tanjung Priok port already had the necessary infrastructure and was preparing to welcome a larger volume of containers in the future, including increasing its capacity to 7 million TEUs from 4.5 million TEUs at present through the New Priok port development.
Located in Kalibaru, North Jakarta, the New Priok Container Terminal 1 (NPCT1), which recently came into operation, has enabled its total yard area to expand by 32 hectares from 120 hectares previously. The firm will soon develop Terminal 2 and Terminal 3 in the port.
Infrastructure development in the Kalibaru project will cost around Rp 14 trillion (US$1.04 billion) and its operation is expected to begin in 2019.
Transportation Minister Budi Karya Sumadi, meanwhile, said that the government also pushed for cargo consolidation in Tanjung Priok port, in line with the port’s appointment as the country’s international hub in the latest national port plan (RIPN), while Kuala Tanjung port in North Sumatra, previously designated as the hub, is still under construction.
Budi added that he would carry out an evaluation for stakeholders in Tanjung Priok port in order to help reduce high service costs.
