CEO of Pelindo III Ari Askhara (center) with CEO of PT Nindya Karya Indrajaya Manopol (left) and Head of Region IV PT Hutama Karya Andung Damar Sasongko (right) talked after the signing of contracts in Surabaya, East Java, Tuesday (10/4).

JAKARTA (TheInsiderStories)PT Pelabuhan Indonesia III (Pelindo III) expands the container yard facility in Lamong Bay Terminal, Tanjung Perak Port, East Java with a total investment of Rp400 million (US$29,917).

The CEO Ari Akshara said in a press statement on April 10 said, the state-owned port operator planned to increase the container yard capacity from 1 million TEUs to 1.5 million TEUs. This terminal projected as the main container terminal in Tanjung Perak when the company finalizes the expansion to container yard with the 6.5 million TEUs.

Nindya Karya CEO’s Indrajaya Manopol assure the construction of expansion could be faster than the target 2 years time. He said this project will support the President Joko Widodo’s goal to decrease the logistic cost.

“It is part of the government program to boost the economic growth of 5 per cent this year,” he added.

Beside with Nindya Karya, Pelindo III also signed a contract with the state-owned construction company PT Hutama Karya to elevate Tanjung Emas port in Semarang with a total project of Rp280 billion.

This project aims to expand the current general cargo dock to the container dock. The company will connect this dock to the railways, so the container transport cost will decrease.

Pelindo III recorded net profit of Rp2.04 trillion last year, increased by 35 percent compared to 2016. This increase was driven by revenue growth of 18 percent year on year (YoY) to Rp8.85 trillion, surpassing the operating expenses growth that was reduced by 5 percent on the annual basis.

This year, the company targets profit growth to reach Rp 2.5 trillion and earn revenues up to Rp 9 trillion. The revenue is derived from the port and non-port services. To reach the target, Pelindo III has budgeted Rp 12.1 trillion for capital expenditure.

Currently, Pelindo III manage 43 ports in seven provinces: East Java, Central Java, South Kalimantan, Central Kalimantan, Bali, West Nusa Tenggara and East Nusa Tenggara, and have 23 subsidiaries and affiliates. Among major ports operated by the company are Tanjung Perak port in Surabaya, East Java, Benoa and Celukan Bawang ports in Bali, Tenau in Kupang,  and Banjarmasin in Kalimantan.

US$1: Rp13,700

Email: fauzulmuna@theinsiderstories