Indonesia Port Corporation II (IPC), Indonesia's largest port operator, today announced its investment of approximately US$2.47 billion to kick-start the development of Kalibaru Port (New Priok), an extension of the Tanjung Priok in North Jakarta, Indonesia.
This follows from IPC's official receipt of the Presidential Regulation on April 5, 2012 to develop New Priok, and preparations for this mega development are already underway to begin work on-site.
In a statement, IPC said the investment for the first phase of development includes US$1.38 billion for container terminal infrastructure and equipment, US$730 million for the petroleum product terminal, US$305 million for toll roads, an industrial area and a power station, with the remaining US$50 million for other services.
It said development of the port may also be funded by partnerships and investments from major shipping and port operators as well as loans from national and international lenders.
Already Indonesia's largest port operator, IPC's New Priok will accommodate up to 13 million twenty-foot equivalent units (TEUs) of containers annually, more than tripling the capacity of Tanjung Priok to over 18 million TEUs when fully completed in 2023.
The first phase of development, which will provide an additional capacity of approximately 4.5 million TEUs, will begin its first terminal operations by 2014. Its groundbreaking is scheduled for July this year.
IPC president director RJ. Lino said: "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 amongst the top ten ports in the world.
"We will provide more efficient services, higher trade and lower transport costs. IPC remains true to our commitment of energising trade and the progress of Indonesia, and we are confident that New Priok will accelerate the economic, business and social development of our people and nation," he added.
