Indonesia President Susilo Bambang Yudhoyono broke ground Thursday on the nation’s largest port development, a project designed to allow Indonesia to accommodate the world’s largest containerships by 2018.
The Kalibaru Project, or New Priok, includes an initial investment of $2.5 billion by the country’s largest port operator, IPC, at the port of Tanjung Priok. The investment is part of a national plan to increase trade by strengthening connectivity between key ports in east and west Indonesia, developing supporting infrastructure, and minimizing empty-load trips.
Indonesia’s ports are currently unable to handle the largest ships in operation, or on order, requiring carriers to serve the country with smaller ships or via transshipment.
The first phase of expansion of New Priok Terminal is set for completion by 2018 and includes three container terminals, with annual capacity of 4.5 million TEUs. The first container terminal in New Priok is scheduled to start operations in 2014, with annual capacity of 1.5 million TEUs. - Eric Johnson