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AP II to boost cargo business with new warehouses, access

State airport operator Angkasa Pura (AP) II plans to boost cargo traffic at Soekarno-Hatta International Airport in Tangerang, Banten, one of the major airports under its management, through various infrastructure developments

Farida Susanty (The Jakarta Post)
Jakarta
Sat, July 21, 2018

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AP II to boost cargo business with new warehouses, access

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tate airport operator Angkasa Pura (AP) II plans to boost cargo traffic at Soekarno-Hatta International Airport in Tangerang, Banten, one of the major airports under its management, through various infrastructure developments.

It is currently looking to build at least three cargo warehouses in a specified area called the Cargo Village. It is also planning to work with state toll road operator Jasa Marga to provide road access for cargo, among other things.

The project is estimated to cost more than Rp 4 trillion (US$275.4 million).

The company has only seen around 700,000 tons of cargo carried through Soekarno-Hatta airport each year, and is looking to double the figure with the upcoming project development.

AP II corporate secretary Agus Haryadi said road access was a strategic issue currently being discussed with the government.

“We hope we can be given a special access that will connect to the toll road currently being developed. We ask for a small section [of the toll road] to be connected with the cargo access,” he told the press on Friday.

It is possible that Agus was referring to the Kunciran-Cengkareng toll road operated by Jasa Marga’s subsidiary, PT Jasamarga Kunciran-Cengkareng. The toll road is being built and is expected to be completed by March next year.

Agus said AP II would later split the funding for the cargo area development with Jasa Marga to build the road access.

The company had procured 89 percent of the land required for the road access development, making it easy to go ahead with the construction plan, Agus said.

As for the Cargo Village, Agus said the company was building the cargo apron, which has reached 60 percent of the target.

At the same time, the company has proposed a new line of integrated cargo warehouses, which will add to the current plan of two warehouses that would be located on the first and second line at the Cargo Village.

The third line of cargo warehouse is likely to be placed on the company’s idle land in Batujaya, which a railway track passes by. The railway track is expected to help increase efficiency of cargo transport as the track is idle from midnight to 5 a.m., offering the possibility to use it for cargo activities.

“That way, the current dwelling time [at Soekarno Hatta International Airport], which is still longer than Singapore [Changi International Airport], can be faster,” Agus said.

The company also announced that it might also partner with another private company, preferably an international cargo player, to manage and split the costs to build the second line of cargo warehouses. The prospective partner will be granted access to the third line of cargo warehouses, which will also serve as a
buffer when there is congestion on the first and second warehouse lines.

The company previously said the new warehouses would be placed on 90 hectares of land with the apron area taking over 1.8 ha of land. The apron itself will be connected with the first line in the Cargo Village.

Apart from finishing the building of the apron, the company will start the bidding for the construction of the Cargo Village’s first line of warehouses.

The company considers the development of the Cargo Village to be a necessity as it is planning to build Terminal 4 of the congested Soekarno-Hatta airport, which will take over the current cargo area.

However, it estimated that cargo traffic would most likely increase in 2020 when construction of the airport’s third runway would be completed.

Transportation Ministry airport director Polana Banguningsih Pramesti said her side was concerned with the development of the Cargo Village as there was a delay from the initial target, adding that the apron construction itself was initially targeted for completion in April.

“It seems to be a little bit delayed, as the initial target was [for the Cargo Village] to be wrapped up by 2019. [...] I hope it will still be in 2019, and the [transportation] minister has asked for an expedited process, especially for the [road] access,” she said.

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