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Construction of Indonesia’s soon-to-be-largest port, New Priok, begins

Nurdianah Md Nur | March 25, 2013
It is expected to be fully completed in 2023 and will be among the top 10 in the world.

President Susilo Bambang Yudhoyono officially broke ground today on Indonesia’s largest port development project to date at Nusantara II Passenger Terminal in the Tanjung Priok port.

New Priok, by Indonesia Port Corporation II (IPC), is part of Indonesia’s long-term transportation strategy to strengthen domestic trade efficiencies and boost the competitiveness of Southeast Asia’s largest economy, as stated in the Masterplan for Acceleration and Expansion of Indonesia’s Development (MP3EI).

A National Pendulum initiative under the MP3EI aims to optimise trade between different ports in Indonesia and lower logistics costs. This is achieved through strengthening connectivity between key ports of call along the Main-sea Corridor connecting East and West Indonesia, developing supporting infrastructure, and streamlining trade along these ports to minimise empty-load trips.

New Priok will be an integral port along the East-West Pendulum, contributing to international and domestic trade.

“Domestic consumption has driven Indonesia’s GDP growth of over five percent on average annually. IPC’s US$2.47 billion investment into port infrastructure shows our commitment to sustain this growth, and to the government’s Masterplan by energising trade. New Priok will open Indonesia up to global and regional shipping routes and help to cement its position as an economic powerhouse, ranked among the top 10 ports in the world when fully completed in 2023,” said president director of IPC, R.J Lino.

Construction on the New Priok development started in December 2012.

The first phase of the terminal will be constructed over 195 hectares of reclaimed land and include three container terminals and two petroleum terminals.

Set to commence operations in 2014, New Priok terminal will provide 4.5 million TEUs of additional container capacity and 9.4 million cubic metres of petroleum products.

Lino added that the planned expansion will allow New Priok to accommodate vessels with a capacity of up to 18,000 TEUs and that service costs are expected to be lower than current ones.


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