During a visit to the prospective location for the Batam New International Port in Tanjung Pinggir, Batam, on January 24, Pandjaitan and Transportation Minister Budi Karya Sumadi affirmed that the project was in line with President Joko Widodo's (Jokowi's) direction to commence the construction of Tanjung Pinggir Port at the earliest.
"This is a smart and green port. We must be able to implement the National Logistic Ecosystem (NLE) that was launched last year," Pandjaitan noted in a written statement on Thursday.
He later explained that NLE was also expected to be implemented in 10 other ports to streamline functioning and make it more efficient. The ecosystem is expected to reduce the national logistics costs to 17 percent by 2024.
"Cost at the seaport of Singapore reaches 13 percent, while we are still at 24 percent. We are optimistic to be able to decrease the cost to 17 percent by 2024. There should be no increase in port cost, and it must be efficient," he remarked.
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The government has decided to revitalize Batam Port by making preparations and improvements in the form of physical infrastructure and management systems, including the digitization of port services.
Regarding the international port development plan, Pandjaitan suggested conducting technical studies involving academics and universities, as well as consultants, with experience in international port studies.
In addition, the minister called for an analysis of the direct and indirect economic impacts.
Speaking in connection with commercial and financial studies, Pandjaitan noted that the government should consider the role and the main driving value, specifically as an international transshipment port, as well as consider the conditions and dynamics of competition, including relative competitiveness, or the competitiveness index, against ports in neighboring countries and their development plans.
There is also a competition strategy that encompasses aspects as the prerequisites in achieving the expected role and the steps that should be taken for port modernization.
These steps encompass superior service, competitive rates, and the ability to attract service users to switch from existing ports in neighboring countries. Related news: Batam's Batu Ampar Port to become Indonesia's first green port
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Translator: Ade Irma J, Resinta S
Editor: Suharto
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