State-owned port operator Indonesia Port Corporation (IPC) has acquired the concession right to operate the New Tanjung Priok port, which will rise in Kalibaru, north Jakarta, the Jakarta Post reports.
IPC will be operating the port, to become Indonesia’s biggest, for 70 years, with an option to renew its concession for another 25 years.
The first phase of the infrastructure development begins this month, and the port is expected to be operational by 2014, IPC president director Richard Joost Lino told local reporters after the concession signing ceremonies.
The first phase will cost US$2.5 billion and be comprised of two fuel berths and three container terminals with a total capacity of 4.5 million 20-foot-equivalent units (TEUs), the Jakarta Post said.
A seven-kilometer toll road also will be erected to connect the Marunda Logistics Park to the new port, the report said.
The second phase of construction will take place from 2018 to 2022, to consist of four container terminals with a total capacity of 8 million TEUs. The project has an estimated cost of $1.5 billion.
The Kalibaru port is seen to boost the country’s economic growth and reduce congestion at Tanjung Priok, the country’s busiest port.
Photo courtesy of IPC
