Indonesian port operator Pelindo II wil not extend contracts on conventional terminal operation at Tanjung Priok port that will expire on March 15, 2010, Bisnis Indonesia reported.

President Director of PT Pelindo II Jose Richard Lino revealed all terminal operators whose contracts would expire next month would not be extended since it was Pelindo II itself that would operate the terminal.

"The management has decided that the contracts on conventional terminal operator will not be extended since we want to operate the terminal ourselves to boost handling productivity," he said.

He explained the measure also aimed at accelerating ship and goods handling services for ship operators and exporters-importers.

Lino added the company with the change expected to provide zero waiting time service at Priok port and even at all ports operated by Pelindo II by 2011.

He continued the company would also bolster investments in handling facilities and infrastructures at all of their ports.