Indonesia New Ports

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.

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New Port Projects in Indonesia:

2014 Update

KualaTanjung Port

New Priok Port

Banten Cruise Ship Terminal

Makassar New Port

Bitung PortExpansion

Sorong International

Container Port


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

Location: North JakartaDeveloper: Pelindo IICapacity: 13 million twenty-foot equivalent units (TEUs)Estimated Costs: US $3.97 billion for phases 1 & 2Estimated 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.


Kuala Tanjung Port

Location: North Sumatra Developer: Pelindo ICapacity: 25 million TEUsEstimated Costs: US $669 millionEstimated Completion: 2030

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.

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.

Sorong International Container Port

Location: Sorong, West PapuaDeveloper: Pelindo II Capacity: 500,000 TEUsEstimated Costs: US $1.6 billionEstimated Completion: 2015

Impact: 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.

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.


Banten Cruise Ship Terminal

Location: Tanjung Lesung, Banten provinceDeveloper: Pelindo II & PT JababekaEstimated Costs: US $50 millionEstimated Completion: 2017

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 tourism-related 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 Port Expansion

Location: Bitung, North SulawesiDeveloper: Pelindo IVEstimated Costs: Awaiting completion of feasibility study, equipment investments already madeEstimated Completion: Awaiting completion of feasibility study, could commence in 2017Impact: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.


Makassar New Port (MNP)

Location: South SulawesiDeveloper: Pelindo VICapacity: 250,000 - 300,000 TEUs in first phase of developmentEstimated Costs: US$637 millionEstimated 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 Post-Panamax 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?

Then you need to attend Port Planning & Development Indonesia01 - 04 December, 2014 - Shangri-La Hotel Jakarta, Indonesia

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

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