State-owned port operator Pelabuhan Indonesia III (Pelindo III) has secured a 25-year concession to operate the Surabaya Western Shipping Route (APBS) in East Java.
Transportation Ministry director general for sea transportation Bobby Mamahit said that the APBS, which is used as a gateway to enter Tanjung Perak Port in Surabaya, would support the operation of the Tanjung Perak, Gresik and Lamong Bay ports, and decrease logistic costs, reported The Jakarta Post.
"The concession time given to Pelindo III is 25 years – one year for pre-construction, one year for the construction and 23 years operation with a total investment of US$73 million," Bobby said.
APBS is set to begin its revitalisation projects including sea dredging works to widen the route from 100 to 150m and deepen it to 13 mean low water springs (MLWS).
The project is expected to be completed in February 2015, and by then the APBS is expected to accommodate larger ships with greater capacities, such as dry-bulk carriers with a capacity of up to 90,000 deadweight tonnage (DWT), tanker ships with 65,000 DWT, liquefied natural (LNG) carriers with 60,000 DWT and container ships with
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