Indonesia’s state-run port operator Pelindo IV has tapped state construction company PT Pembangunan Perumahan (PTPP) to build the first phase of the Makassar New Port in South Sulawesi as part of the government’s maritime highway program.
The two companies signed recently a two-year contract for reclamation works and phase one of the port development, a project that is seen to improve the country’s logistic performance and ease the burden on Tanjung Priok Port in Jakarta and Tanjung Perak Port in Surabaya.
The contract value amounts to IDR326 billion (US$24 million), according to local reports.
The new facility to rise in Makassar, the provincial capital of South Sulawesi, is envisioned as an international hub that will ease supply chain problems in the eastern part of the country, according to Pelindo IV president director Mulyono, who led the signing ceremonies.
Ground-breaking rites were held last month, and construction is to start within this month.
The project includes the reclamation of 16 hectares of sea area and the building of a 320-meter-long quay, and is scheduled to be finished by early 2018.
Pelindo IV, which runs ports in the eastern region of the country, was awarded concession rights last month to operate Makassar New Port for 70 years.
The project will be implemented in two stages. Once the first phase of the new port is completed, 400,000 twenty-foot equivalent units (TEUs) will be added to the capacity of the existing port at Makassar, which currently stands at 700,000 TEUs.
The additional capacity of 400,000 TEUs is expected to bring in an additional IDR320 billion in revenue annually, Mulyono said.
The total project cost could reach IDR12 trillion and the port could be operational by 2030 with an overall additional capacity of 3.5 million TEUs. The Makassar New Port will also be linked to freight railway projects planned for South Sulawesi.
Last month, Pelindo IV got an IDR3 trillion bank loan to bankroll the project.
Photo: Davidelit
