Main Indonesian Port Tanjung Priok to Get Rp2.7t Revamp

Jakarta Globe, Yessar Rosendar, February 05, 2010

State-owned port operator PT Pelindo II plans to invest Rp 2.7 trillion ($286.2 million) to improve infrastructure at Tanjung Priok port.

The investment is part of a five-year plan to modernize Tanjung Priok, the country’s main port, and cut costs in half.

Pelindo II president director Richard J Lino told the Jakarta Globe late on Thursday that the company would spend Rp 1.5 trillion on new equipment, with the rest going toward redesigning the docks and purchasing stronger cranes. Richard said the goal was to reduce the time ships were required to remain docked from three to four days currently to two days.

Richard said PT Jakarta International Container Terminal would spend Rp 1.6 trillion to improve infrastructure facilities at its adjacent terminal this year.

JICT announced in December that it had secured a $70 million syndicated loan from the International Finance Corporation, the lending arm of the World Bank, and HSBC to help boost capacity at its Tanjung Priok terminal. JICT is jointly owned by Hong Kong’s Hutchison Port Holdings and state-owned port operator PT Pelabuhan Indonesia II. Its Tanjung Priok terminal handles an estimated 30 percent of the country’s container volume.

The government has set a goal of developing an international-standard regional port. Richard is pushing for Tanjung Priok to be that port, despite its limitations. It has been hampered by limited capacity and inefficient operations, including poor road access.

Its current capacity is only 600 containers per hour, about two-thirds of the volume projected for next year.