Indonesia’s North Sumatra port to transform into integrated sea hub

0
1100

Strait_of_malaccaThe port of Kuala Tanjung in North Sumatra, Indonesia, is slated to be expanded and modernized in an ambitious integrated port development plan that will enable it to serve large cargo vessels three years from now.

The project, construction of which starts this year and ends in 2018, will contribute to the government goal of making the country a world maritime axis, according to port operator Pelindo I, in a news report by state-owned news agency Antara News.

The port is seen to serve as a destination for large cargo ships that usually call only at Singapore and Malaysian ports when passing through the Strait of Malacca.

At the same time, the project aims to build a hub port in western Indonesia that will improve overall national logistics performance and competitiveness as well as generate jobs and business opportunities.

Bambang Eka Cahyana, president director of state-run Pelindo I, said the port of Kuala Tanjung has the potential to become an international harbor with its deep basin and the presence of a growing industrial zone in the city.

He also said the port is included in the government’s blueprint on the development of a comprehensive national logistics system.

“Development of the port of Kuala Tanjung would contribute to economic development in North Sumatra especially the regency of Batubara,” Bambang said.

He continued that improvements to the port will help facilitate shipments of industrial products from the region and of export commodities from the Sei Mangke Economic Zone in the regency of Simalungun.

He added that Pelindo I wants to build an integrated port with the capability to handle ultra-large container vessels of around 18,000 TEUs in capacity.

The port is seen to contain rail tracks for cargo transport, a logistic park for storage, labeling and repacking facilities, and a residential area for port and industrial workers.

The first phase is expected to take around 18 months and cost about IDR4 trillion (US$283 million).

Pelindo I had signed a cooperation agreement with partners in November 2014 to develop an industrial zone over a 1,000-hectare plot of land in the port city. These partners include the Port of Rotterdam, in which the Netherlands-based port will provide experts and consultants relating to the commercial, operational, and financial aspects of the development.

The port of Kuala Tanjung in the regency of Batubara was originally built to serve the logistics needs of PT Indonesia Asahan Aluminum.

Photo: DoD