Pelindo Invests Rp80 billion in East Java Port

TEMPO.CO, Jakarta – State-owned port operator PT Pelabuhan Indonesia (Pelindo) III will spend Rp80 billion in export-import services at the Tanjung Wangi Port in Banyuwangi, East Java, by 2015. The investment is aimed at following up with the construction of a 100-meter container pier at the port.

Pelindo III's general manager for its Tanjung Wangi branch, Bangun Sugito, said the port currently has a 518-meter long pier, which can only accommodate four vessels. "We need one more special dock for containers," he said on Wednesday, May 28.

Director of PT Timur Nusantara, Thomas Budi Sarwono, said that shipping companies are ready to provide export-import services from Tanjung Wangi to Singapore. Once the port is capable of exporting, Thomas said, companies will be able to save Rp500,000 per container on transportation costs.

So far, companies from Banyuwangi must travel for a minimum of seven hours to Tanjung Perak Port in Surabaya. The transport cost could be higher because the line to get into Tanjung Perak reaches up to 14 days.  

Muhammad Sugiyono, chairman of the Banyuwangi Chamber of Commerce and Industry, hopes that Pelindo is serious in preparing the infrastructure of Tanjung Wangi Port. The plan to have the port provide export and import services has been echoed since 2002, but it's is yet to materialize.

Sugiyono also said that Pelindo must be able to convince exporters and shipping companies to move their activities to Tanjung Wangi. "We are prepared to help mobilize exporters as long as the infrastructure is ready," he said.

IKA NINGTYAS