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The next generation of container handling comes to Indonesia

October 11, 2017

In May 2015, the President of Indonesia, Joko Widodo, inaugurated the Lamong Bay Terminal, the country’s first automated container handling facility and a project of the state-owned terminal operator PT Pelabuhan Indonesia III (Persero), (Pelindo III). The event was an important milestone in the nation’s long-term transport development program.

Improving the country’s infrastructure has been a top priority for the Indonesian government under President Widodo’s leadership, and a great deal of investment has been committed to upgrading the archipelago’s ports network. The aim – to boost Indonesia’s competitiveness as a hub for container traffic in Southeast Asia.

“Indonesia is investing enormously in its transport and logistics infrastructure, including ports, to continue its sustainable economic development. The Pelindo projects are central to the whole plan,” explains Robby Dayoh, Senior Manager of Pelindo III.

At the time of its inauguration, Lamong Bay Terminal in Surabaya, East Java, was referred to as the jewel in Pelindo III’s crown – an apt description, given the degree of investment allocated to perfecting its technological systems.

Konecranes offers quality products that meet our requirements with a competitive price. Konecranes also constantly innovates its products to answer container terminal needs.

In 2013, Konecranes delivered an automated container handling system to Lamong Bay which included a total of 20 Automated RMG (ARMG) cranes, 10 Ship-to-Shore cranes and five Straddle Carriers.

“Konecranes offers quality products that meet our requirements with a competitive price. Konecranes also constantly innovates its products to answer container terminal needs,” Dayoh says. “For these reasons, we also chose Konecranes as our partner for the second project.”

Dayoh refers to another industry-first order that Pelindo III commissioned from Konecranes in 2014, this time, for Phase 1 of an Automated Rubber Tired Gantry (ARTG) system, including eleven ARTG cranes. These were successfully ramped-up for commercial operation in Terminal Petikemas Semarang, Pelindo III’s container handling facility in Central Java, by the end of 2016.

During the implementation of phase 1, Konecranes received Pelindo III’s order for phase 2 of the project. It is anticipated that nine more ARTG cranes will be delivered to the terminal by the end of 2017.

All the pieces of the puzzle

According to Konecranes’ project managers, Mika Rapeli and Tommi Saarinen, the delivery to Lamong Bay was instrumental in Konecranes’ journey to becoming a provider of completely automated systems. In container handling, the solution provider’s goal is to offer totally automated solutions. The continued trust of Pelindo III demonstrates Konecranes’ ability to supply the all the pieces of the automation puzzle.

“We have delivered hundreds of ARMG cranes, but the delivery to Lamong Bay Terminal was the first Konecranes Automated Stacking Crane system with our own automation technology. We were determined to make a success of this project,” Saarinen says.

“This project proves again that we are a leading automation supplier. We have the technical know-how, the mindset and a deep understanding of what the customer needs. This is about fully delivering on the promise of automation: increasing the safety, productivity and predictability of the customer’s operations,” Saarinen asserts.

We were determined to make a success of this project.

Rapeli is pleased with the attention that the project has brought to the Konecranes ARTG: “We are very excited that our ARTG system has taken its first steps and is now running.  New customers have been showing considerable interest in it, so the future looks bright.”

At the facility’s inauguration, Mr. Prasetyadi, President Director of Lamong Bay Terminal, was equally optimistic: 

“Thanks to the reliability, productivity, predictability and safety provided by our Konecranes automated container handling system, we will provide our shipping line customers with uninterrupted, reliable container flow. This will be the key to build up business success in Indonesia and South-East Asia,” Prasetyadi said.

From design to final testing

A wide range of field expertise came into play in both projects. Rapeli and Saarinen describe the cooperation between Konecranes and Pelindo III as successful and productive.

“Open dialogue and a constructive attitude between all parties was a must. A vital factor has been our ability to keep to the schedule and fulfill the technical requirements of this very demanding automation project,” says Rapeli.

According to Saarinen, a highlight of the project was Konecranes’ ability to exceed expectations in the technical performance of the automated system:

“The automation design team went above and beyond their normal responsibilities. They were intimately involved in the design and extensive pre-testing of sub-systems and integrated systems in Konecranes’ automation R&D facilities.”

“Furthermore, bringing the commissioning and final testing of the system on-site with the same key individuals was a way of ensuring that the implementation went very well. Stakeholder management likewise played an important role in the success of this project.”

Open dialogue and a constructive attitude between all parties was a must. A vital factor has been our ability to keep to the schedule and fulfill the technical requirements of this very demanding automation project.

Rapeli recalls that while there were highlights during the project execution, there were some obstacles as well. These were solved with creativity, flexibility and hard work.

Emphasizing the importance of combining global thinking and local cultural understanding, Rapeli says that Indonesia is like any other part of the world when it comes to doing business.

“As in any other market, you must listen to the customer, show respect and keep your promises,” Rapeli deduces.

“The general sentiment I witnessed while I was in the country was one of ambition and eagerness to develop and adopt the latest and greatest technologies,” he recalls.

3 Facts

  • With a population of 260 million spread across 17,000 islands, Indonesia constitutes the world’s 10th largest economy.
  • In its 2016 budget, the Indonesian government earmarked the highest amount ever allocated to infrastructure development, approximately USD $22.9 billion.
  • Indonesia has more than 24 state-owned enterprises (SOEs) operating across different sectors. These can potentially borrow from the financial markets to fund infrastructure projects, for example.
    Source: World Bank

Photos: Konecranes

Fast File

Lamong Bay Terminal

Lamong Bay Terminal, Indonesia’s first automated container handling facility, was opened as part of the nationwide freight transport improvement program. The terminal will increase the Surabaya port’s annual capacity from 1.5 million twenty foot equivalent units to 3.5 million TEUs. When the port is operating fully, the total capacity will be 5.5 million TEUs.

Pelindo III

PT Pelabuhan Indonesia III (Pelindo III) is a port operator, and one of Indonesia’s largest state-owned enterprises. It manages 43 ports with 16 branches throughout seven provinces in Indonesia, including Central Java, East Java, Bali, West Nusa Tenggara, East Nusa Tenggara, Central Kalimantan, and South Kalimantan.