Container terminal set for expansion

The Jakarta Post, Jakarta

The Jakarta International Container Terminal (JICT) will expand its 72-hectare container yard by 12.4 hectares to increase its storage capacity by 57 percent to 55,000 ton equivalent units (TEUs).

The leading container terminal at Tanjung Priok port in North Jakarta will also procure some capacity handling equipment, build a road access to the unfinished Jakarta outer ring road and add its existing four entrance gates by 24 and its four exit gates by four with a total investment of US$150 million.

President director Bambang Bhakti said here Wednesday that JICT was targeting to handle a total of two million TEUs this year from 1.8 million TEUs handled last year.

"This means we are targeting to handle around 170,000 TEUs every month," he said, adding that the construction, which would start in March, was expected to finish in 2011.

He said after the completion of the expansion, the company would be able to serve three million TEUs per year.

Despite prediction about the global economic slowdown this year, which is driven by crisis of the U.S subprime mortgages, he said he was optimistic with the growth of Indonesia's exports and imports.

The U.S. is one of Indonesia's main export-import destinations which means a slowdown in its economy could dampen trade demand to Indonesia.

However, Bambang said he believed the country's economy would continue to grow as it had over the past five years.

"We are preparing this terminal to keep up with the growing demands in the future because we aim to become a world class container terminal," he said.

Manager for corporate affairs Agus Barlianto said that in order to meet its annual targets, the company had been stretching its working days so that it would have just 24 hours of shut down per year, comprising 16 hours for Idul Fitri and eight hours for Idul Adha -- both are Islamic holidays.

He said the customs office had agreed to keep up with the company by limiting its holidays.

Bambang said that the company, in cooperation with the customs office, had implemented a port system as part of the National Single Window (NSW), a recently launched online permit issuance program for exports and imports through Tanjung Priok port.

"So far, we have problems in implementing the port system as we are well-connected with the customs office. We are waiting for other government institutions that will join this system," he said.

The government launched the port system in the middle of December, involving five government agencies including the customs office to serve imports activities limited for 100 companies of the priority lane service.

JICT is a joint venture company owned 51 percent by Hutchinson Port Holdings and 49 percent by state-owned company PT Pelabuhan Indonesia (Pelindo) II and the maritime employees cooperative.

Up to 60 percent of import-export activities in the country are carried out through the Tanjung Priok port. (ind)