Indonesia’s new political leadership is serious about its moves on infrastructure, which includes the USD4.66 billion redevelopment and expansion of the existing Tanjung Priok port.
The expansion is expected to turn the port into the gateway port to this huge country of 17,000 islands.
The Port of Tanjung Priok is already the main port of entry to Indonesia, the world’s fourth largest country by population. Indonesia’s container terminals currently have a capacity of 4 million teu per year. In 2014, it handled 6.4 million teu, a far cry from its immediate neighbour Singapore port’s 33 million teu; this is with Tanjung Priok terminals running at near capacity levels and vessels waiting 30 hours for wharf space.
Currently, small, low-draft domestic terminals are inefficient and ineffective in handling both international and domestic throughput. Container growth rates have averaged 15% over the past 10 years. The New Priok project is being spearheaded by Indonesian Ports Corporation (IPC) and the Indonesian Port Authority through a public-private participation model. The concession period is for 70 years with a provision for another 25 years.
The first phase involving two new container and product terminals and access roads are under way and well in progress, according to IPC officials, who were at the TOC Asia Container Supply Chain Conference in Singapore on 22 April.
New Priok’s financing will largely be by IPC and stakeholders. Toll road operators, power suppliers, industrial park, and terminal operators will be involved with IPC and asset-based financiers taking up the bulk of the project funding.