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New Port Projects

in Indonesia:
2014 Update
It’s an exciting time for Indonesia’s 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 country’s economic development.

Bitung Port
Expansion

Kuala
Tanjung Port

Sorong
International
Container Port

Makassar
New Port
New Priok Port

Banten Cruise
Ship Terminal

www.portdevelopmentasia.com

www.portdevelopmentasia. 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 Port (a.com . New Priok Terminal will accommodate up to 13 million TEUs of containers annually.97 billion for phases 1 & 2 Estimated Completion: 2023 Impact: Tanjung Priok is the country’s busiest port which currently oversees processing of more than half of all goods imported to and exported by Indonesia. The solution devised by Pelindo II was to develop a supporting port facility which has been operationally designated Kalibaru Port. Phase 1 of the project involves the installation of a new container terminal complete with cutting-edge processing technology and infrastructure. Kalibaru Port) Location: North Jakarta Developer: Pelindo II Capacity: 13 million twenty-foot equivalent units (TEUs) Estimated Costs: US $3. rapidly increasing maritime trade and more ambitious shipping contracts have left the port significantly overworked and operating at capacity. more than tripling the capacity of Tanjung Priok to over 18 million TEUs when fully completed in 2023.k.a. However. 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. This expansive project broke ground in March 2013 and once completed in 2023 it will markedly improve Indonesia’s logistics chain.

West Papua Developer: Pelindo II Capacity: 500.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.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. Zaldy Masita. providing a golden opportunity for Indonesian maritime trade. To emphasise the importance of this development.” 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. 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. plans for Sorong Port were put on hold pending the approval of permits from the Transportation Ministry and local government. “it costs around Rp 20 million to Rp 24 million to transport goods from Java or Sumatra to Papua. Sorong Container Port is a vital part of the Government’s plans to develop shipping facilities which cover six economic corridors throughout the archipelago which connect Sumatra. Java.com . This phase could be completed as early as the end of 2015 and by the project’s estimated completion in 2030 this capacity will have grown expansively to the point where the port can accommodate up to 25 million TEUs. This ambitious development will be broken down into several phases due to its size and complexity. Sulawesi. www. explained that. Kalimantan.portdevelopmentasia. Although its construction was slated to be completed in mid-2013. Bali and Nusa Tenggara. at present. This port’s construction is vital to the region as container shipping through the Malacca Strait has risen to 51 million TEUs annually. West Papua and Maluku.000 TEUs Estimated Costs: US $1. the Chairman of The Indonesian Logistics Association (ALI). The timing of the Kuala Tanjung port project is also particularly pressing as the existing Belawan Port has become overcrowded in recent years. or about five times the cost needed to ship goods to America.

.Banten Cruise Ship Terminal Bitung Port Expansion Location: Tanjung Lesung. The terminal itself offers a total of 300 docks for privately approved yachts and another 3000 docks for public boats.” according to President Director of Pelindo IV. 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. Speaking in at a recent press interview. could commence in 2017 Impact: Although the expansion of the Bitung Port is currently undergoing a series of economic and environmental feasibility tests. 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. www. shipping industry analysts have been encouraged by the investments in port equipment that have already been made at Bitung. The port sits in a strategic location connecting it to Maluku. as we are expecting the cruise terminal to bring in 1 million foreign visitors every year. Banten’s 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. equipment investments already made Estimated Completion: Awaiting completion of feasibility study.portdevelopmentasia. 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. “we are hoping that the terminal will become a tourism hub that helps generate economic activities in the area.com . 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. explained. Therefore. Although it is still unclear how much investment will ultimately be needed to make these requisite improvements. there have been repeated calls for the Government to develop it into an international hub.. Jababeka president director SD Darmono.immediately procure other equipments that support the operations of the port. Pelindo IV has already installed container cranes worth US $300 million with plans to. with further investment in capital and resources.” The port project is expected to encourage further tourismrelated initiatives to flourish in Tanjung Lesung. “. Mulyono. 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.

Directorate General of Sea Transport.300. Indonesia Please log on to our website to download the agenda www. MNP will feature a draft of 14 m (46 ft) and a dockyard of 320m in order to accommodate Panamax and PostPanamax ships. Pelindo IV 2• Discover The Future of the Indonesian Port System and Investment Opportunities from the Head of Planning. as the eastern [half of the country] is enjoying rapid development.000 TEUs in the first phase. Indonesia 3 • Hear The Key Challenges and Opportunities for Dredging and Reclamation Works at Indonesian Ports from the Director of Port and Dredging.portdevelopmentasia. Want to Learn More about Indonesia’s 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. The port project’s goal is to support the plan of the Indonesian government for transforming Indonesia into a developed country by 2025. We want to make Makassar New Port a hub for Eastern Indonesia. Ministry of Transportation.com .000 and 300. Pelindo IV will construct the port with capacity for between 250. “This is our largest ever project. particularly in improving the distribution of goods in Sulawesi.” said Pelindo IV operational director Herman Harianja. Ministry of Transportation. Indonesia Then you need to attend Port Planning & Development Indonesia 01 . 2014 .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. Maluku and Papua.04 December.000 .Makassar New Port (MNP) Location: South Sulawesi Developer: Pelindo VI Capacity: 250.Shangri-La Hotel Jakarta. Planned in two distinct phases.