Indonesia Container Terminal Project Gets Green Light

Indonesia Container Terminal Project Gets Green Light

A presidential decree has cleared the way for the construction of new container terminals at the Port of Tanjung Priok, Indonesia.

The long-delayed New Priok development at Kalibaru near the Indonesian capital of Jakarta will be built by state-owned Indonesia Port Corporation II and will triple container capacity at Tanjung Priok by 2023.

A prequalification process tender to identify private bidders for the expansion of the congested port near Jakarta was scrapped in January after government ministers made it clear IPC, usually called Pelindo II, would be awarded the contract.

New Priok will eventually accommodate up to 13 million 20-foot equivalent units of containers annually, taking total capacity at congested Tanjung Priok to more than 18 million TEUs and allowing Indonesia to be able to accommodate the largest container vessels, removing the need to transship at Singapore.

Phase 1 of the project will provide additional capacity of approximately 4.5 million TEUs and is scheduled to open in 2014 on 195 hectares of reclaimed land offering of 4,000 meters of quayside.

Funding allocations include $1.38 billion for new container terminal infrastructure and equipment, $730 million for a petroleum product terminal, and $305 million for toll roads, an industrial area and a power station. IPC is also seeking additional funds by forming partnerships with shipping and port operators, as well as obtaining financing from national and international lenders.

“Upon completion in 2023, New Priok will be the largest port development in Indonesia, driving the country’s growth as a global shipping hub ranked among the top 10 ports in the world,” said RJ. Lino, president director of IPC. “We will provide more efficient services, higher trade and lower transport cost.”

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