Wed, 22 Jul 2009

From: The Jakarta Post

By Desy Nurhayati, The Jakarta Post, Jakarta
The Jakarta administration and state-owned port operator PT Pelindo II will work together to turn the congested Tanjung Priok Port in North Jakarta into an international hub, say officials.

Governor Fauzi Bowo said Tuesday the development was aimed at accelerating business at the country’s biggest seaport, to help it compete with other ports in the region.

“Our goal is to make Tanjung Priok an international hub that will allow us to carry out direct exports and imports, and eliminate transit ports,” Fauzi said after a meeting at City Hall with Pelindo executives.

“Pelindo offers very strategic plans that we will synchronize with [the administration’s] long-term plans, including how to integrate the port and the city as an entity.”

The governor added the development of each part of the port had to be supported by adequate facilities to ease congestion. The 604-hectare port remains riddled with traffic problems that snarl the flow of goods.

Pelindo II president director R.J. Lino said the company and the city would establish a joint venture to develop and operate the port.

“The joint company, whose shares will be split between the two parties, will have the rights for the construction and the operation of the port,” he said.

“We expect to commence construction next year and begin operation by early 2014.”

To develop the port and integrate it with areas along the city’s northern coast, 300 hectares of coastal area will be reclaimed, Lino said.