APMT exec urges fast port development in Indonesia

APMT exec urges fast port development in Indonesia    A lack of port infrastructure development is hampering the growth of the Indonesian economy, an executive with APM Terminals said at a conference in Jakarta this week.
   Speaking at the Indonesia International Conference ' Focus On Indonesian Economy 2011, APM Terminals Asia-Pacific Regional Director of Portfolio Management Michael Lund Hansen said that five of the country's six major ports are currently operating above their design capacity. Those ports handle 90 percent of Indonesia's containerized cargo. Hansen said congestion is reducing efficiency and adding to logistics costs, with Indonesia at risk of losing trade opportunities to lower-cost rivals.
   'Indonesia is not growing at its full potential, because economic growth in Indonesia faces infrastructure challenges,' Hansen said.
   Tanjung Priok and Tanjung Perak, Indonesia's largest container ports, handled 4.7 and 3 million TEUs respectively in 2010, with the country's annual throughput capacity estimated at 11 million TEUs.
   Based on projected growth rates, Hansen said Indonesia will require a minimum of 6 to 7 million TEUs of new container capacity by 2015, or an additional 15 million TEUs of container capacity by 2020.
   'The time to get started is now,' he said.
   The economy of Indonesia, with a population of 240 million, expanded by 6.1 percent in 2010, and is projected to grow to $842 billion in 2011. Economic growth of 6.2 percent and 6.5 percent has been forecasted by the International Monetary Fund for Indonesia in 2011 and 2012.