Management of PT Pelindo II - Photo by IPC

JAKARTA (TheInsiderStories) – PT Pelabuhan Indonesia (Pelindo) II also known IPC, an integrated port operator, plans to start Cikarang – Bekasi – Java Sea (CBL) inland waterways this year. The project is estimating need costs Rp6 trillion (US$419.58 million).

According to the director of IPC Dani Rusli Utama, the initial investment for the CBL project was Rp3.2 trillion and is expected to be completed in 2021. The project is very strategic as an alternative mode of transportation of goods delivery by sea from the industrial area in Cikarang and Bekasi.

Furthermore, he said, the operator also has plans to open industrial zone at the port areas collaborating with the third parties. Beside build a new port, IPC also looking an opportunity to acquire existing port.

The operator has planned to acquire 49 percent shares of PT Krakatau Bandar Samudera (KBS), unit of steel maker PT Krakatau Steel Tbk (IDX: KRAS) before list it shares through Initial Public Offering. Currently KBS manages Cigading Port in Banten province.

In 2017, KBS claimed earn revenues of around Rp 900 billion with profits of around Rp 192 billion. The pier capacity reaches 17.6 million tons per year and its expected the capacity of the dock jumped to 40 million tons in 2020. At that year, KBS hope the revenue will reach Rp 1.2 trillion and net profit reaches Rp 200 billion.

Cigading Port – Photo by KBS

Cigading port was established to provide loading and unloading facilities for Krakatau Steel Company (KSC) raw materials, products and spare parts. In 1970, the government appointed state-owned energy producer PT Pertamina to take over the operations underthe Trikora Steel Plant and at the time was established by KSC.

First half Performances

IPC has announced budgeted capital expenditure of Rp 11 trillion this year. By the end of June, the state-owned operator has spent 45 percent of the budget.

The funds is allocated for strategic projects like the development of Kalibaru Port Rp1 trillion, the development of the first phase of the Kijing Terminal Rp 1.5 trillion, the first construction of Patimban Port amounting to Rp 1 trillion (if Pelindo II’s proposal is accepted as an operator), and the development of the existing port is Rp500 billion.

In the first semester (1H) of 2018, IPC recorded a net profit of Rp1.21 trillion or an increase of 18 percent compared to the previous year of Rp1.02 trillion. While the revenues rose 8.18 percent from Rp 4.93 trillion to Rp5.35 trillion.

The chief executive Elvyn Masassya was optimistic that by the end of the year the company’s revenue could increase by 13.29 percent to Rp12.36 trillion compared to last year. Meanwhile, the company’s EBITDA was recorded at Rp.2.09 trillion as of June 2018, an increase of 12.85 percent from the same period last year of Rp1.85 trillion.

On the operational side, the number of containers entering and leaving ports during 1H 2018 increased by 10.18 percent from 3.28 million TEUs to 3.62 million TEUs. While the number of vessels coming in and out increased from 94.58 million gross tonnage to 104.68 million gross tonnage, or up 10.68 percent (YoY).

The flow of non-container goods decreased from 27.97 million tons to 27.44 million ton but on the other hand the number of passengers increased by 21.85 percent from 260.42 million to 317.31 million people.