Port Progress
    Category: Big Build By : Gloria Haraito Read : 1966 Date : Sunday, April 06, 2014 - 11:31:19

    Courtesy of IPC

    With a direct view of the harbor, Richard Lino can watch the NewPriok port being built from his office in TanjungPriok, Jakarta’s main port. “NewPriok will be the largest port in Indonesia, and built to a world-class standard,” says the president director of PT Pelabuhan Indonesia II (Persero), also known as Indonesia Port Corporation (IPC). Since December 2012, Lino has been developing NewPriok, an extension of TanjungPriok port, through its subsidiary PT PengembangPelabuhan Indonesia.

    This project is important because Priok is the main trading gateway for the entire country—it handles 70% of all shipping containers coming into and out of the country. With container volumes rising more than 10% a year in the country, it is critical that Priok be expanded and improved. “If we do not build NewPriok, then we cannot chase growth opportunities,” he says.

    When NewPriok is fully operational by 2030, the annual capacity of TanjungPriok will be tripled from the current volume of nine million twenty-foot equivalent units or TEUs (a standard measure of container volume). The expansion of the port will strengthen Indonesia’s logistics chain and reduce shipping costs, as well as stimulate new investment in the country.

    This project is one of the largest infrastructure projects in the country by size of investment, with an estimated total cost of $4.5 billion. It is divided into two phases, with the first phase costing $2.5 billion and the second phase $2 billion. In design, the new terminal will swing out like a giant arm in front of the existing docks. To fund the first phase, the IPC will raise $1.5 billion from bank loans and the remainder from investors in each project.

    In first phase, the IPC is building the first half of the arm, with a new 252 hectares port holding three container terminals having a capacity of five million TEUs per year and two terminals for liquid bulk products with a capacity of 10 million cubic meters per year. The depth of the channel next to the new port will reach 20 meters at low tide allowing larger container ships to dock at NewPriok. The first phase should be operational by 2017. For the second phase, the IPC will construct four container terminals with a total capacity of 10 million TEUs per year. It will cover an area of 180 hectares and should be operational by 2020.

    At the same time, Lino is improving the existing port. The current port’s channel length is being increased from 150 to 300 meters and its depth is being increased from 14 to 16 meters. This channel depth will make it equal to the depth in other major ports such as Hong Kong, Singapore and Rotterdam. The benefit of this work is that the channel can now accommodate two ships instead of one. Another improvement, standard at most of the world’s other major ports, is a 24-hour operation, where as previously the port had operated only 8 to 5. The port has also gotten new IT systems to help automate port services.