New deadline for Batam port
STATE PORT operator Pelindo II, also known as Indonesia Port Corporation (IPC), has announced it will start developing the long-mooted Tanjung Sauh Port on Batam in collaboration with its partner, Chinese Merchants Group by the end of this year._Pelindo says construction is estimated to cost about Rp 5 trillion (US$515 million) and will be completed in stages.
Tanjung Sauh is part of a small island location off Punggur and just south of the Kabil Industrial Estate.
Proposals for its development as a regional port date back to the long since defunct Sijori Growth Triangle proposals of the early 1990s.
The concept is for a container hub capable of transshipment of cargoes to and from Indonesia via the Malacca and Singapore Straits without transshipment via Singapore. There have been periodic announcements of an imminent start to the project over past years but all have been stillborn.
Now IPC president director Richard Joost Lino says the Jakarta-based port company and its Chinese partner will collaborate on both the construction and the operation of the new port.
“We are currently finalizing the project details with our partner from China and hope to complete these within three months. The port will become an international hub in western Indonesia,” Lino said.
A port with a total capacity of 4 million 20-foot-equivalent units (TEUs) would be built in the first phase. This could be finished by the end of 2015.
The company wanted to later expand the port to a 15 to 20 million TEUs capacity facility, as Batam assumed a growing role in the shipping and trade sectors. (The Singapore Port Authority handled just under 32 million TEUs in 2012 and current expansion work will take capacity to 50 million TEUs a year.)
Lino said that Tanjung Sauh would help reduce logistics costs, particularly in Sumatra and West Kalimantan, the nearest regions.
Meanwhile, Pelindo I in Medan, North Sumatra, also plans to develop that city’s Kuala Tanjung Port into a major port to serve Indonesia’s western region.
Construction of the port reportedly will be managed by state port company Pelindo I. - The Jakarta Post