New Port Projects

in Indonesia:
2014 Update
Its an exciting time for Indonesias maritime development as a multitude of port
construction projects enter their initial implementation phases. Whilst the Tanjung
Priok Port currently handles more than 70% of all goods entering the country, this
is soon about to change. The newly elected President Joko Widodo has promoted
what he has terms the sea highway programme to resolve the country's logistics
bottlenecks and improve its naval trade capacity.
This article takes a closer look at six of the most prominent port construction
projects occurring throughout Indonesia with a focus on their capacity, cost and
what their completion will mean for the countrys economic development.

Bitung Port
Expansion

Kuala
Tanjung Port

Sorong
International
Container Port

Makassar
New Port
New Priok Port

Banten Cruise
Ship Terminal

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New Priok Port (a.k.a. Kalibaru Port)

Location:
North Jakarta
Developer:
Pelindo II
Capacity:
13 million twenty-foot equivalent units (TEUs)
Estimated Costs:
US $3.97 billion for phases 1 & 2
Estimated Completion: 2023
Impact:
Tanjung Priok is the countrys busiest port which currently oversees processing of more than half of all goods
imported to and exported by Indonesia. However, rapidly increasing maritime trade and more ambitious
shipping contracts have left the port significantly overworked and operating at capacity.
The solution devised by Pelindo II was to develop a supporting port facility which has been operationally
designated Kalibaru Port. This expansive project broke ground in March 2013 and once completed in 2023
it will markedly improve Indonesias logistics chain, encouraging further elevation of its trading potential by
fostering an even more attractive import/export environment for both its ASEAN trading partners and those
even further afield.
Phase 1 of the project involves the installation of a new container terminal complete with cutting-edge
processing technology and infrastructure. This phase should be completed by the end of 2014 and the winner
of the tender for phases 2 and 3 is due to be announced in September this year.
New Priok Terminal will accommodate up to 13 million TEUs of containers annually,
more than tripling the capacity of Tanjung Priok to over 18 million TEUs when
fully completed in 2023.

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Kuala Tanjung Port

Sorong International Container Port

Location:
North Sumatra
Developer:
Pelindo I
Capacity:
25 million TEUs
Estimated Costs:
US $669 million
Estimated Completion: 2030

Location:
Sorong, West Papua
Developer:
Pelindo II
Capacity:
500,000 TEUs
Estimated Costs:
US $1.6 billion
Estimated Completion: 2015

Impact:

Impact:

Next year will see the commencement of this highly-anticipated

port project being undertaken by Pelindo I that has been
approved by the Ministry of Transportation with the processing
of all necessary permits nearing completion.

Sorong Container Port is a vital part of the Governments

plans to develop shipping facilities which cover six economic
corridors throughout the archipelago which connect Sumatra,
Java, Kalimantan, Bali and Nusa Tenggara, Sulawesi, West
Papua and Maluku. Although its construction was slated to
be completed in mid-2013, plans for Sorong Port were put on
hold pending the approval of permits from the Transportation
Ministry and local government.

This ambitious development will be broken down into several

phases due to its size and complexity. The initial phase will
see the construction of port facilities with a projected capacity
of 1 million TEU containers and a port draft of 17 metres
deep enough to allow large vessels to comfortably enter. This
phase could be completed as early as the end of 2015 and
by the projects estimated completion in 2030 this capacity
will have grown expansively to the point where the port can
accommodate up to 25 million TEUs.
This ports construction is vital to the region as container
shipping through the Malacca Strait has risen to 51 million
TEUs annually, providing a golden opportunity for Indonesian
maritime trade. The timing of the Kuala Tanjung port project
is also particularly pressing as the existing Belawan Port has
become overcrowded in recent years.

To emphasise the importance of this development, the

Chairman of The Indonesian Logistics Association (ALI),
Zaldy Masita, explained that, at present, it costs around Rp
20 million to Rp 24 million to transport goods from Java or
Sumatra to Papua, or about five times the cost needed to ship
goods to America.
Once the port becomes fully operational it is expected to
dramatically cut logistics cost of transhipment from Papua by
more than 50 percent as well as significantly decreasing those
costs from Java to Eastern Indonesia.

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Banten Cruise Ship Terminal

Bitung Port Expansion

Location:
Tanjung Lesung, Banten province
Developer:
Pelindo II & PT Jababeka
Estimated Costs:
US $50 million
Estimated Completion: 2017

Location:
Developer:
Estimated Costs:

Impact:
With cruise tourism on the rise in Indonesia, the recent
development agreement between Pelindo II and publically
listed PT Jababeka has been considered very timely since
Jakarta currently has no facility to accommodate cruise ships.
Therefore, Bantens Tanjung Lesung has been chosen as the
site to develop a cruise terminal that will provide an alternative
gate for foreign tourists looking to visit the capital.
Construction on the new terminal and accompanying marina
is due to commence sometime within the next six months and
should be completed within three years after breaking ground.
The terminal itself offers a total of 300 docks for privately
approved yachts and another 3000 docks for public boats.
Speaking in at a recent press interview, Jababeka president
director SD Darmono, explained, we are hoping that the
terminal will become a tourism hub that helps generate
economic activities in the area, as we are expecting the cruise
terminal to bring in 1 million foreign visitors every year.
The port project is expected to encourage further tourismrelated initiatives to flourish in Tanjung Lesung, with further
investment in capital and resources. Already Jababeka is
looking to work with Garuda Indonesia in order to build an
airstrip and several hotel development projects have been
proposed.

Bitung, North Sulawesi

Pelindo IV
Awaiting completion of feasibility

study, equipment investments

already made
Estimated Completion: Awaiting completion of feasibility

study, could commence in 2017

Impact:
Although the expansion of the Bitung Port is currently
undergoing a series of economic and environmental feasibility
tests, there have been repeated calls for the Government to
develop it into an international hub. The port sits in a strategic
location connecting it to Maluku, Papua and the Philippines
that makes it an attractive shipping prospect for international
traders who would reportedly use it more regularly if its capacity
and quality of facilities were more in line with other international
ports in the region.
Although it is still unclear how much investment will ultimately
be needed to make these requisite improvements, shipping
industry analysts have been encouraged by the investments in
port equipment that have already been made at Bitung. Pelindo
IV has already installed container cranes worth US $300 million
with plans to, ...immediately procure other equipments that
support the operations of the port, according to President
Director of Pelindo IV, Mulyono.

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Makassar New Port (MNP)

Location:
South Sulawesi
Developer:
Pelindo VI
Capacity:
250,000 - 300,000 TEUs in first phase of development
Estimated Costs:
US$637 million
Estimated Completion: 2016
Impact:
The Makassar New Port (MNP) is being developed to help support the existing Soekarno-Hatta Port in
Makassar and avoid potential congestion as a result of the increasing container traffic. Planned in two distinct
phases, Pelindo IV will construct the port with capacity for between 250,000 and 300,000 TEUs in the first
phase.
This is our largest ever project. We want to make Makassar New Port a hub for Eastern Indonesia,
particularly in improving the distribution of goods in Sulawesi, Maluku and Papua, as the eastern [half of the
country] is enjoying rapid development, said Pelindo IV operational director Herman Harianja.
MNP will feature a draft of 14 m (46 ft) and a dockyard of 320m in order to accommodate Panamax and PostPanamax ships. The port projects goal is to support the plan of the Indonesian government for transforming
Indonesia into a developed country by 2025.

Want to Learn More about Indonesias Port Planning and Development?

1

Get the facts about Expanding

the Makassar New Port (MNP)
into a Hub for Eastern Indonesia
from the Deputy Director of Port
Facilities, Pelindo IV

Discover The Future

of the Indonesian Port System
and Investment Opportunities
from the Head of Planning,
Ministry of Transportation,
Indonesia

Hear The Key Challenges

and Opportunities for Dredging
and Reclamation Works at
Indonesian Ports from the Director
of Port and Dredging, Directorate
General of Sea Transport, Ministry
of Transportation, Indonesia

Then you need to attend

Port Planning & Development Indonesia
01 - 04 December, 2014 - Shangri-La Hotel Jakarta, Indonesia
Please log on to our website to download the agenda

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