Congestion Targeted In New Jakarta Port Expansion

by Lloyd's List - last modified May 18, 2012 12:24 PM.

Congestion is the main target of the new development. Photo - Ports of Aukland

IPC aims to bring annual capacity to 18m teu per annum, three times the current amount. The project, however, will not be finished until 2023.
Construction of the first phase will begin in July with the building of three container terminals and two petroleum products terminals. The first of the terminals will be completed by 2014, IPC’s chief executive officer Richard J Lino said.

The aim of the expansion is to reduce dependence on Singapore’s port. Currently, vessels with cargoes bound for Indonesia must first stop at Singapore and switch their loads to feeder vessels for the onward journey to Jakarta.

Tanjung Priok port has seen intensifying growth, tracking growth in Indonesia’s import and export demand. Volumes at the port grew 20% in 2011 year on year to 5.8mteu.

Growth in 2010 from 2009 stood at 25%, about four times Indonesia’s average gross domestic product growth for the past decade. However, congestion, poor infrastructure and an insufficient road network have hampered the port’s ability to meet the demand.

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