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LAMONG BAY PROJECT TO BE HANDED OVER SOON: Cilamaya Port Targeted for Operations in 2014

By Inneke Lady and the Imam Gozali

JAKARTA - Ministry of Transportation (Kemenhub) is targeting Cilamaya Port, Karawang, West Java, to be operated starting in 2014. On the other hand, PT Pelabuhan Indonesia (Pelindo) III has affirmed that one of the work packages of Lamong Bay Multi Purpose Terminal project, worth Rp 404 billion, can be handed over by the end of July 2012.

"Actual construction of Cilamaya Port has indeed been a bit late. However, we expect the project to be done as soon as possible so that the port can be operated from 2014 - 2015," Director General of Ports and Maritime Affairs of the Ministry of Transportation (Kemenhub), Kemal Heryandri, told Investor Daily in Jakarta last week.

According to Kemal, the construction of Cilamaya Port requires funding of around Rp 5 - 10 trillion. So far, the port project’s feasibility study has been prepared, while the project’s design will be organised.

Kemal explained that the construction of Cilamaya Port can reduce the burden on Tanjung Priok Port, which has been experiencing demand in excess of its capacity. In addition to its full capacity, the Port of Tanjung Priok is also facing the constraint of traffic density from the land side. Therefore, the transfer of part of the burden to Cilamaya is one of the solutions that must be taken.

"Moreover, there are industrial areas in Karachi, I guess if all expenses are in Tanjung Priok, the burden of Jakarta also gain weight. Therefore, the government attempted to get into Cilamaya to build a port there, "he said.

In addition to the Port of Cilamaya, the government is ready to build the Port of Marunda. Marunda Port will be used as a logistics port. "I think it is possible for Marunda Port to serve as an alternative logistics port, alongside the Port of Tanjung Priok, whose capacity is already full," said Kemal.

Lamong Bay
Meanwhile, PT Pelindo III has declared that the Rp 404 billion-worth Package A of the Lamong Bay Multi Purpose Terminal project, from a total of six work packages valued at Rp 3.4 trillion, is nearly complete; the progress rate has reached 92.98 percent. This Lamong Bay project package, which comprises physical works on the dock and some supporting facilities, will be handed over by PT Adhi Karya to Pelindo III at the end of July 2012.

"Lamong Bay Project [i.e. the port] is expected to be operational in early 2014 as a support terminal for the development of loading and unloading flows at the Port of Tanjung Perak. The terminal, which occupies an area of ​​50ha, will be used as a buffer terminal when a number of docks in Tanjung Perak are revitalised," said Lamong Bay Terminal Project Leader of PT Pelindo III, M Heri Darmawan, in Surabaya, Sunday (3 June).

Head of Public Relations of PT Pelindo III, Edi Priyanto, added that it is very important for his company to be able to complete the Lamong Bay project according to the set target. Of the six Lamong Bay project packages, he said, this year there are two packages that will be handed over, namely packages A and C. Package C project covers the construction of a connecting bridge valued at Rp 164 billion, which is being undertaken by PT Nindya Karya.

"The package C project has recorded a progress rate of 20.47 percent; its process is accelerating and it is targeted for completion by late 2012 and it will be handed over," he said.

Specially for package B, Edi said, its progress attainment is still relatively low, namely at 1.23 percent. PT Pembangunan Perumahan and PT Wijaya Karya are the two contractors working on the project package, which involves the construction of two units of connecting roads and stockpile yard (container yard) valued at Rp 853 billion.

Meanwhile, international consultancy firm Frost & Sullivan has assessed that the Government of Indonesia should promote improvement of infrastructure facilities and enhancement of the quality of transport links to the port. This is necessary to increase port logistics productivity in the country.

"With the improvement of port infrastructure facilities and investment to enhance the quality of transport links between ports or the routes to ports, there could be a positive impact on the cost of logistics," said Vice President Transportation and Logistics Practice Asia Pacific of Frost & Sullivan Malaysia, Gopal R.

Gopal added that the logistics market potential in Indonesia is very high, in line with the rapid economic development in Asia. This conforms to forecasts that the countries grouped under BRIC (Brazil, Russia, India, China) will become world economic powers. China, among others, will represent Asian countries to become one of the economic powers of the world.