Cikarang Dry Port Stops Expansion Due To Economy Uncertainty

CIKARANG – PT Cikarang Inland Port, Cikarang Dry Port operator, said it stopped business expansion this year in line with the prediction on the uncertainty of the national economy.

Benny Woenardi, Managing Director of PT Cikarang Inland Port, said this year it will stop the investment flow to grow the business. So far, Cikarang Dry Port is still struggling to attract exporters and importers’ interests to park their containers in Cikarang, he said.

He explained CDP which has integrated services is still not able to maximize the capacity of an area of 200 hectares.

Of the total area, as he said, only 30% have been worked and the capacity is around 400,000 TEUs, while only 45% are filled.

On the other hand, he also recognizes the temporary suspension on the investment for the CDP was more due to business uncertainty.

Besides, the upcoming election has caused some prospective partners delayed their contracts, CDP is still confined to the realization of the business problem that is not optimal.

Since founded in 2010, CDP is projected to be the diversion center, or a solution to reduce density and dwelling container at Tanjung Priok Port. However, the importers and exporters are not willing to park their containers in the CDP.

Alvian Riyanto representative of PT Sukanda Djaya – snacks importers – said many importers are reluctant to choose the CDP as the port of destination.

“Because we are still puzzled by the lack of Corporate Services Customs Service in the CDP,” he said.

He said the importers had been accustomed to the services in Tanjung Priok Port. Currently , he added, the dwelling time in Tanjung Priok is quite high, but there are PPJK services that have well-partnered with Customs and Excise.

On the other hand, he agreed that the total cost of imported container in the CDP is lower than in Tanjung Priok Port.

“The cost is lower in CDP, moreover there is free time for containers. But we have a problem with external issues, such as the container rent and PPJK,” he said.

Benny also claimed CDP’s income until now is not able to recoup the investment that has been disbursed.

He saw there was a tendency to let CDP struggles for its own business growth.

Instead, he said, the export – import players who have not had a paradigm shift, still makes Tanjung Priok port as its destination. “Though, it cannot take containers anymore,” he said.

He said the optimalization of CDP which is done through cooperation between the government and the operator, can cut Tanjung Priok Port’s dwelling time into 2.8 days. “Containers are stagnant for 6.7 days, there is a bottle neck in Tanjung Priok port,” he added.

Cooperation

To further spur interest of exporters and importers, the CDP has facilitated a fleet of trucks for towing containers from the Tanjung Priok Port. No fewer than 80 types of trailer trucks for transporting containers.

Benny said that this year there are approximately 1.2 hectares of land realization to enlarge the capacity to 500,000 TEUs. “That is last year,” he said .

Although, it still wants a helping hand from the government to persuade exporters and importers to switch to CDP, he said it is also exploring cooperation with international retailers.

At the end of this year, some retailers will sign a contract with CDP for their logistics. “Retailers are waiting for the final decision after the election, ” said Benny.(T03)

http://business.bisnis.com/business/read/20140313/97/25848/cikarang-dry-port-stops-expansion-due-to-economy-uncertainty

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