Working on Kendal Port, Pelindo III Cooperates with Singapore Operators

June 11, 2018

PT Pelabuhan Indonesia III (Persero) will form a joint venture with a Singapore-based port operator, PSA International and a Chinese construction company, China Communication Construction Engineering (CCCE). This joint venture will build and operate Kendal International Port, Central Java.

Memorandum of collaboration between Pelindo III, PSA, and CCCE was signed by Pelindo III President Director Ari Ashkara, PT China Communications President Indonesia's Construction Engineering Director Fan Fiyeng, and PSA Head of Terminal Services Seow Hwee in Jakarta on Wednesday (6/6/2018) .

Pelindo III President Director, Ari Askhara, said that the company cooperates with two foreign companies that have a commendable reputation in the international world in order to increase market potential in Kendal Port. He explained, cooperation with PSA and CCCE includes planning, development, development, operation, investment and funding.

In addition, cooperation also includes environmental studies, planning studies, geotechnical studies, regional development studies, lay out & port technical design, operational design, market potential analysis & project feasibility. Ari said, the development of Kendal Port would require an investment of Rp. 4 trillion.

According to Ari, the Kendal Port has an important role in accommodating the flow of goods in Central Java because the Semarang Container Terminal is expected to exceed capacity by 2021.

"The Kendal Port will be an attractive feature for investors to invest in the Kendal Industrial Estate (KIK) because it can increase the effectiveness and efficiency of the distribution of production goods," Ari said, Wednesday (6/6/2016).

Pelindo III Director of Operations & Commercial, Mohammad Iqbal added, Pelindo III would hold a majority portion in joint ventures formed with PSA and CCCE. He said, his side would immediately apply for permission to the Ministry of Transportation in the planned development of Kendal Port.

He hopes the licensing process can be completed in 2019 and in the same year the construction phase can begin. The operation of the new terminal is targeted to begin in 2021.

For the first phase, Pelindo III will build a container terminal with a capacity of 1 million TEUs (twenty foot equivalent units) and is devoted to the flow of international goods.

"The Kendal Port will be the first container termina integrated with the industrial area," he told Bisnis.com, Wednesday (6/6/2018).

Iqbal said, Pelindo III also used integrated container mover (ICM) technology in Kendal so that the transfer of goods could take place faster and cheaper. With ICM, containers are moved through rolling stock or trains, not transported by truck.
In the world, ICM is only being used in Jebel Ali Port, United Arab Emirates. Pelindo III will hold a Belarusian company to work on this project. For information, originally the ICM project will be built in Tanjung Perak so that the transfer of containers between intermediaries is more efficient.

However, Pelindo III has transferred this project to Kendal because in Surabaya the company will focus on working on the Teluk Lamong Phase II Terminal construction.