Indonesia’s state port operator PT Pelindo II plans to build a $13-billion modern container port in Sorong, Papua province, to function as a domestic hub port to reduce national logistics costs by up to 60 percent.
The current steep cost of internal shipping is due to the high stevedoring fees and the small number of operators, said Natsir Mansur, vice chairman of the Indonesian Chamber of Commerce and Industry in Distribution and Logistics.
The port will serve as a regional hub for eastern Indonesia. It will connect Sorong regency with Jayapura, Merauke, Bitung, Jakarta and Surabaya, and with neighboring countries including Papua New Guinea and Australia.
There is also a proposal to establish Makassar Port on Sulawesi Island solely as an international hub port. Natsir said that once Makassar goes international, the sea transportation sector between ports in eastern Indonesia will develop.
Pelindo plans to work with another state seaport operator and five shipping companies to build the Sorong port. Construction is expected to start by early 2012 and to be completed by mid-2013.
