Cruise line of Pelindo III's unit - Photo by APBS

JAKARTA (TheInsiderStories)— Indonesia’s state-owned port  operator PT Pelabuhan Indonesia III (Pelindo III) increased its ownership in PT Alur Pelayaran Barat Surabaya (APBS), a management of the cruise line provider in East Java.

No further details on the values of the transaction. The joint venture company own by Pelindo III together with Netherland dredging company Van Oord and ship operator PT Gerbang Samudera Utama.

Pelindo III has increased its ownership in APBS, a port developer by 30 percent, which added its control in the port builder to 90 percent through its subsidiary PT Pelindo Marine Services.

In 2015, Pelindo III finished the revitalization project of West Surabaya’s Road Channel with an investment value of US$73 million. This 25-mile project that became a sea access to the Tanjung Perak port and Gresik Port, East Java, was developed to 150 meters with a depth of up to -13 meters low water spring (LWS).

Previously the channel only has 100 meter wide and 9.5 meter LWS depth.

“This extension accommodates the heavier ships,” said President Director of Pelindo Marine Service Putut Sri Muljanto in a press statement on Friday (20/04).

The APBS collects the channel fee from the ship’s operators for shipping traffic management, as well channel maintenance fee.

According to the Pelindo III data, the ships that through APBS in 2017 reached 2.857 units equivalent to the 53 million ton gross of ships weight. It a 158.5 per cent rise from the 2016 figure that only reached 1.105 units.

Pelindo III recorded net profit of Rp2.04 trillion (US$148.91 million) 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 is 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