Indonesia to invest US$2.47 billion to boost port's to 18 million TEU

INDONESIA Port Corporation (IPC), the largest port operator in Indonesia, is planning to invest US$2.47 billion in the development of Kalibaru Port, an extension to the existing Tanjung Priok Port in North Jakarta, Indonesia, according to UK's Port Technology International.

Upon completion in 2023, Kalibaru Port, or New Priok, will more than triple the annual capacity of Tanjung Priok from five million TEU to 18 million TEU.

Indonesia Port Corporation confirmed earlier this month that it had received approval from Indonesia's Presidential Regulation to begin works on the ambitious project, the port operator said in a statement.

The first phase of the project will include the installation of $1.38 billion worth of container terminal infrastructure and related equipment, while $730 million will be made available to construct the port's new petroleum product terminal. In addition, a further $305 million will be used to build toll roads, a power station and industrial area, with the remaining $50 million earmarked for other services.

IPC also said that further funding in the development of New Priok could come from outside investors and in the form of loans from national and international lenders.

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TANJUNG PRIOK to get new IT system to ease congestion

State-owned port operator Pelindo II will install a new information technology system at Tanjung Priok port in North Jakarta, the country's main shipment gateway, in the middle of this year to help ease congestion, reported the Jakarta Post.

Pelindo II president director Richard Joost Lino said that his company would use the IT system to monitor vessel traffic online.

"With this system, we can ease vessel congestion as well as decrease the number of vessel collisions. The system will make the work flow at Tanjung Priok port more effective and efficient," Lino said.

Pelindo II has allocated US$11.55 million to build the IT system, he said.

By the end of 2011, container traffic at the port had reached 5.47 million TEUs, surpassing the maximum capacity of five million TEUs.  In 2009, traffic was at 3.7 million TEUs and in 2010 at 4.7 million TEUs.

"We have also converted a 1,000 sq m plot of land in Terminal three into an international container terminal to help ease the traffic," he said.

Pelindo II will inform the port's service users about the IT system, and expects them to fully adapt to the system within six months, he added.

"We must be able to decrease the container idle time from six days to three days in near future," he said.

Pelindo II will also install the vessel traffic information system at Palembang, Pontianak, and Jambi ports in 2013, he said.

Pelindo II has also been mulling buying new container loading cranes, comprising two quay container cranes (QCC) and 11 luffing container cranes.

source: cargonewsasia.com / picture: google.com

The LARGEST and BUSIEST port in Indonesia,Tanjung Priok is OVERLOAD

The capacity of Port of Tanjung Priok, North Jakarta, is considered no longer adequate to accommodate the amount of goods entering.

"As a result, there is accumulation of goods and this resulted in losses to hundreds of millions of dollars per day," said Vice Chairman of Indonesian Chamber of Commerce (Kadin) Transportation sector, Syafrizal.

Syafrizal said the number of incoming flows of goods, particularly containers each day increases. If calculated per year, the increase reached 13% to 15%. Medium capacity of accommodating of the largest and busiest port in Indonesia, now no longer sufficient entry of goods.

According Syafrizal, ideally the load of each container must not be equal to the area. Stacking goods overloaded by more than 100%. Supposedly, the accumulation of goods is only 70% or at most 80%. But now the number has more, even up to 140, said Sayfizal.

As a result, the accumulation of goods out of control. Even container crane was difficult to work and often suffered damage because of excessive usage.

"We must also shift the accumulation of these containers of goods to another place. It means there was a shift takes place and it costs more," he said.

According Syafrizal, to shift one container, then the costs that range from IDR 1 million to IDR 2 million. While the containers are moved each day totaling more than 300 units. Syafrizal said the accumulation of goods will increasingly be seen at the time of holidays or other big day. For that it hoped the government to reform infrastructure.

At least it took five years to fix Tanjung Priok port infrastructure and a maximum of about 10 years. But, now it needs is extremely urgent. So should be done immediately, he said.

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