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Indonesia’s Tanjung Priok port seen cutting rates to attract direct calls

Indonesia’s Tanjung Priok port seen cutting rates to attract direct calls
Seeking to raise its status as an international hub Indonesian state-owned port operator Pelindo II has vowed to cut the costs of shipping containers out of the archipelago's main port of Tanjung Priok, local media said.

Pelindo II hoped to consolidate cargo to reduce the cost per container by up to IDR1.5m ($113), president director Elvyn Masassya was quoted as saying.

“There will be some cargo consolidation. Large ships could stop there, and the logistic costs could compete with Singapore,” Elvyn said. He noted that these moves could help costs by between IDR1m and IDR1.5m

Tanjung Priok hopes to become more of an international hub, exporting directly instead of transshipping through Singapore. “Because of the hub status, the shipment of goods will be more efficient, particularly for goods from Java and Sumatra,” Elvyn said.

Elvyn claimed that Tanjung Priok’s facilities and capacity are sufficient to be a hub port and it just needed to attract more direct calls. He did not elaborate on the how many lines have expressed such interest.

“We already have adequate terminals and equipment. We only need to coordinate with shipping companies to inform them that the cost of transit at Tanjung Priok will be lower,” he added.