A.P. Moller-Maersk Group's APM Terminals cautioned on the need for Indonesia's port and inland infrastructure to keep up with its economic growth, Seatrade Asia online reports. Michael Lund Hansen, APM Terminals Asia-Pacific regional director of portfolio management, said at an industry conference that Indonesia is not growing at its full potential because it faces infrastructure challenges.
Hansen stated that five out of six major Indonesian container ports, which combined handle 90% of Indonesian container traffic, are currently operating above capacity, reducing efficiency and adding to logistics costs, risking the loss of international trade to lower-cost rivals.
APM Terminals believed in public-private partnerships and it is committed to investing in Indonesia, he added.
Tanjung Priok and Tanjung Perak, the country's largest container ports, moved 4.7m teu and 3m teu respectively in 2010.
Based on projected growth rates, Hansen advised that Indonesia will require a minimum of 6-7m teu of new container capacity by 2015, or an additional 15m teu by 2020.
Hansen stated that five out of six major Indonesian container ports, which combined handle 90% of Indonesian container traffic, are currently operating above capacity, reducing efficiency and adding to logistics costs, risking the loss of international trade to lower-cost rivals.
APM Terminals believed in public-private partnerships and it is committed to investing in Indonesia, he added.
Tanjung Priok and Tanjung Perak, the country's largest container ports, moved 4.7m teu and 3m teu respectively in 2010.
Based on projected growth rates, Hansen advised that Indonesia will require a minimum of 6-7m teu of new container capacity by 2015, or an additional 15m teu by 2020.