MEDAN. State owned port operator Pelindo I said it will modernize and expand the port of Kuala Tanjung in North Sumatra to accommodate large vessels.
The port of Kuala Tanjung in the regency of Batubara was originally built to serve the logistics for PT Indonesia Asahan Aluminum (Inalum).
Pelindo said construction will start this year to be completed in 2018 and it will cost around Rp4 trillion.
The port of Kuala Tanjung is strategically located to facilitate shipping in the busy commercial lane of Malacca strait .
It could serve as a port of call mainly for cargo ships . So far large ships passing through the Malacca strait, called only at Singapore and Malaysian ports.
Kuala Tanjung port would contribute to the government program of making the country a world maritime axis.
President Director of Pelindo I Bambang Eka Cahyana said the port of Kuala Tanjung has the potential to become an international port as it has a deep port basin and with the growing industrial zone in the city.
Therefore, PT Pelindo I wants to take a greater role in facilitating shipping in the Malacca strait.
“Development of the port of Kuala Tanjung would contribute to economic development in North Sumatra especially the regency of Batubara,” Bambang said.
He said expansion and modernization of the port of Kuala Tanjung would facilitate shipments of industrial products from the region and export commodities from the Sei Mangke Economic Zone (KEK) in the regency of Simalungun.
“The port would not only busy to handle the shipments of industrial products and plantation commodities, but it would also be busy accommodating foreign ships and in loading and unloading container goods,” he said.
Bambang said PT Pelindo I wants to build an integrated port that could accommodate ultra large container vessels (ULCC).
ULCC which has a capacity of around 18,270 Teus would need a port basin with a depth of at least 17 meters, he said.
The port would also be linked with rail track for cargo transport , logistic park for storage, labeling and repacking facility and residential area for port and industrial workers.
Bambang said the port of Kuala Tanjung is included in the blur print of National Logistics System based on a presidential decree No 26 of 2012.
Kuala Tanjung would be the country’s first hub port, he said.
The first phase of construction would take around 18 months, and would cost around Rp4 trillion.
Pelindo I already signed a cooperation agreement with partners on 17 November 2014, to develop an industrial zone over a 1,000 hectare plot of land in the port city.
Pelindo to bring to reality sea toll vision Pelindoi I is set to bring to reality President Joko Widodo’s vision of sea toll and maritime axis and would optimize the functions of its ports.
“Change in the environment of strategic ports must be carefully addressed in 2015 ahead of the implementation of Asean Economic Community (AEC),” Chief Commission of Pelindo I Mustofa Widjaya said here recently.
Mustofa said a number of port areas in Indonesia could make economic interaction freely with areas in other Asean countries.
“If domestic link fails to function, interaction with areas in other countries would create disparity and a threat to the nation’s competitiveness,” he said.
He said regional and international connectivity is a need for each country, therefore, the concept of sea toll and maritime axis is important to give life to maritime economy.
Inter island connectivity would be strengthened with development of sea transport infrastructure , he said, adding for that purpose institutional coordination has to be improved and regulation would be needed .
“The national economic productivity is an answer to regional challenges,” he said, adding intensification and expansion are needed to strengthen competitiveness.
Through intensification, the management of Pelindo I needs to optimize all resources , both facilities and infrastructure and create a system and policy that could strengthen the potentials of the company, he said.
He cited the management of projects, improvement of the quality of human resources , implementation of system and information technology and internal control.
Among big projects of Pelindo I are Phase I and II of Belawan container terminal, Batu Ampar container terminal, Kuala Tanjung Multipurpose terminal and Kuala Tanjung Industrial Zone.
“Competitiveness is the key word in ensuring the readiness of the company in facing the host of challenges external and internal, that the company could take full advantage of open competition when AEC is fully implemented,” Mustofa said.
Kuala Tanjung Industrial Gate Pelindo I has expanded cooperation with Port of Roterdam, the Netherlands, by signing agreement on the expansion of the port of Kuala Tanjung .
“Under the cooperation agreement, Port of Rotterdam would provide experts and consultants for commercial, operational and financial aspects,” Chief Executive Officer of Port of Rotterdam, Allard Castelein said during a visit here .
The cooperation is aimed at improving efficiency in port operation, Castelein said.
“The project is to build a hub port in western Indonesia that would improve the performance in logistics and competitiveness of Indonesia,” he said.
He said the project would open many new jobs that it would not only contribute to national economic development but also would improve the welfare of the local people.
“The opportunity to start new business in Kuala Tanjung is fantastic. Therefore, Port of Rotterdam would expand the port of Kuala Tanjung with world class facilities,environmentally friendly with sustainable business,” he said.