"New Tanjung Priok" The Biggest Indonesia Port Project

 

New Priok Port in Jakarta

The construction of a new port - an extension of Indonesia's busiest port, Tanjung Priok - is one of the biggest public projects currently in development in Indonesia. The Tanjung Priok harbor in North Jakarta which handles more than half of total goods that are exported from or imported to Indonesia has however become overloaded over the years. The New Priok project will bring Indonesia's port facilities on par with other world-class ports. It will significantly strengthen Indonesia's logistics chain, thus implying a better environment for trade and other businesses. Developer and operator of this mega-project is state-owned enterprise Pelindo II.

When fully operational in 2023, this New Priok Port (which is also known as Kalibaru Port) will more than triple annual capacity of Tanjung Priok.

Phases of Construction

The complete New Priok Port project is divided into three phases. The first phase includes the installation of container terminal infrastructure and equipment (USD $1.38 billion) as well as construction of a new petroleum product terminal (USD $730 million) on a total of 195 hectares of land in North Jakarta. In this phase the port's length of piers becomes around 4,000 meters. The groundbreaking of this first phase was held in March 2013 (attended by president Susilo Bambang Yudhoyono). The company that won the tender for the construction of the container terminal is Mitsui & Co, one of Japan's largest trading companies. In May 2013, it was reported that Royal HaskoningDHV, a Dutch project management and engineering consultancy service provider, won the contract to supervise the construction of the extension of the main port. The first phase is expected to be completed in 2014.

The tender for terminal two and three is currently open. The winner will be announced in September 2013.

When the whole project is completed, Jakarta's Tanjung Priok Port will increase its annual capacity from five million twenty-foot equivalent units (TEU) of containers to 18 million TEU and will be able to facilitate triple-E class container ships (with a 18,000 TEU capacity) in a 300 meters wide two-way sea lane. Tanjung Priok was originally designed to handle five million TEU of container traffic per year. In 2011, however, container traffic in this harbor reached 5.8 TEU, indicating the necessity to expand its infrastructure.

 
Start of Construction:
• March 2013
Completion:
• 2014 - phase 1
• 2023 - complete project
Estimated Costs:
• US $2.47 bil. - phase 1
• US $1.50 bil. - phase 2
Developer/Operator:
• Pelindo II - Mitsui & Co

Involved Company

Through a presidential decree (No. 36/2012) issued in April 2012 Indonesia Port Corporation II (abbreviated IPC but better known in Indonesia as Pelindo II) was tasked to develop and operate the New Priok Port. Pelindo II is Indonesia's largest port operator and plans to invest USD $2.47 billion to realize this project. The project will be funded through Pelindo II's own resources, national and international loans as well as funding from major shipping and port operators. Funding from the Indonesian State Budget (APBN) is not allowed in any form.