Spending spree benefits manufacturers

The Indonesia port development spending spree has benefited service providers in the sector. Konecranes had an order worth over €100 million for Indonesia in March, signing an agreement to deliver container-handling equipment to Pelindo III.

"With the growth of both international and domestic traffic, many terminals are running close to full capacity or suffer from productivity shortages," Philippe Richard, Konecranes

The order comprises ten ship-to-shore cranes, 20 automated stacking cranes and five straddle carriers. Delivery is scheduled for 2014 and 2016.

This adds to Konecranes’ other orders for 16 RTGs at Terminal Petikemas Surabaya, and the 15 RTGs sold to Belawan International Container Terminal.

Indonesia is a strategically important market for Konecranes, which is seeking to partner in the country’s port development programme. It sees provincial economies growing fast and domestic goods traffic constantly increasing. As a result, ports infrastructure is vital for continued development.

Philippe Richard, Konecranes’ Country Director in Indonesia, told Port Strategy the port expansion is rapid, but the ambitious plan calls for foreign investment to increase. In the meantime congestion is a major problem.

“With the growth of both international and domestic traffic, many terminals are running close to full capacity or suffer from productivity shortages. Increasing the number of terminals is one side of the situation. Konecranes believes that maximising terminal productivity is also an essential key to the congestion issues.

“Solutions such as automation like the one chosen in Lamong Bay Terminal definitely increase productivity hence easing congestion while increasing storage and processing accuracy.”

Another service provider helping support the port development strategy is SOGET which along with Microsoft Corp has been chosen by the Indonesia Port Corporation to implement the largest Port Community System in the World. The system will initially be deployed in Jakarta, before further expansion to other Indonesian ports.

It will allow ports to increase dramatically their level of activity while complying with international trade facilitation and security standards. Connectivity established by the Port Community System will speed up the integration of trade at both domestic and international levels and improve logistics performance and competitiveness.

7-9 October

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