Widodo opens expansion to Jakarta’s Priok port
JAKARTA: Indonesian President Joko Widodo inaugurated an expansion of the country’s main seaport in Jakarta yesterday, a facility upgrade that will cut the time container ships must spend waiting to load or unload.
“We cannot delay the development of modern ports any longer.
This supports trade flows and investment in this country,” Widodo said at the opening of New Priok Container Terminal (NPCT) 1 in Kalibaru, the first of five phases of an expansion of Priok Port that are to be completed in 2019.
Tanjung Priok Port in North Jakarta, which handles the bulk of international shipments into Southeast Asia’s biggest economy, has been plagued with bottlenecks and long handling times due to years of under investment.
Widodo has taken a special interest in reducing port dwell times, part of his government’s broad efforts to improve the nation’s infrastructure to drive economic growth. Dwell time at Priok is now between 3.2 and 3.7 days, down from up to a week in 2014, Widodo said, adding that he wants the wait to be reduced to less than three days.
“The expansion of Tanjung Priok may encourage shipping lines to launch more direct ship calls to Jakarta, but I do not see it as a major threat to Singapore’s transhipment status,” said Jonathan Beard, head of transportation and logistics in Asia for design and consultancy firm Arcadis.
The new terminal adds 1.5 million twenty-foot equivalent units (TEU) to Priok’s existing seven million TEU annual capacity, said Elvyn Masassya, CEO of Pelabuhan Indonesia (Pelindo) II, Indonesia’s state-owned port company that operates NPCT 1.
With eight cranes that can move 30 containers per hour and berths that can dock ships with a draft of as much as 16 metres, the new terminal will allow Priok to accommodate vessels carrying 10,000 TEUs from Europe and East Asia for the first time, Masassya said. – Reuters
A tug boat is seen near a container port in Tanjung Priok, North Jakarta, Indonesia, yesterday.