Jakarta adds 1.5 million TEU to 7 million capacity with new box dock
INDONESIAN President Joko Widodo opened the expansion of the Port of Jakarta with a facility to add 1.5 million TEU annual capacity to its present seven million and reduce dwell times, Reuters reports.
Dwell time is now between 3.2 and 3.7 days, down from up to a week in 2014, he said, adding that expects it to be cut to less than three days.
"We cannot delay the development of modern ports any longer. This supports trade flows and investment in this country," President 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.
Logistics costs in Indonesia are up to 2.5 times higher than in neighbouring countries. "If we're slow we'll be left behind," he said.
President 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.
Bringing Priok in line with global standards will depend on how quickly it can move cargo away from the docks, and whether it can alleviate congestion problems that slow the movement of ships and cargo, increasing costs for exporters and importers.
"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 transshipment status," said Jonathan Beard, head of transportation and logistics in Asia for design and consultancy firm, Arcadis.
Pelabuhan Indonesia (Pelindo) II, Indonesia's state-owned port company, operates NPCT 1 in a consortium that includes Singapore's PSA International and Tokyo-listed Mitsui.
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 TEU from Europe and East Asia for the first time, said port officials.
INDONESIAN President Joko Widodo opened the expansion of the Port of Jakarta with a facility to add 1.5 million TEU annual capacity to its present seven million and reduce dwell times, Reuters reports.
Dwell time is now between 3.2 and 3.7 days, down from up to a week in 2014, he said, adding that expects it to be cut to less than three days.
"We cannot delay the development of modern ports any longer. This supports trade flows and investment in this country," President 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.
Logistics costs in Indonesia are up to 2.5 times higher than in neighbouring countries. "If we're slow we'll be left behind," he said.
President 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.
Bringing Priok in line with global standards will depend on how quickly it can move cargo away from the docks, and whether it can alleviate congestion problems that slow the movement of ships and cargo, increasing costs for exporters and importers.
"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 transshipment status," said Jonathan Beard, head of transportation and logistics in Asia for design and consultancy firm, Arcadis.
Pelabuhan Indonesia (Pelindo) II, Indonesia's state-owned port company, operates NPCT 1 in a consortium that includes Singapore's PSA International and Tokyo-listed Mitsui.
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 TEU from Europe and East Asia for the first time, said port officials.