Kuala Tanjung International Hub Port in North Sumatera province of Indonesia will soon become the biggest and most strategic port in the western part of the archipelago, following the signing of an agreement with Port of Rotterdam Authority and Zhejiang Provincial Seaport Investment & Operation Group Co, Ltd. for the development of the Indonesian port.
Port of Rotterdam Authority operates the biggest port in Europe, Port of Rotterdam. While Zhejiang Provincial Seaport Investment & Operation Group Co., Ltd. operates the world's biggest cargo terminal in Ningbo
"This cooperation is one of the steps we take to increase Kuala Tanjung capability in competing with other major ports along the Malacca Strait," said Dian Rachmawan, president director of PT Pelabuhan Indonesia I (Persero), owner of Kuala Tanjung International Hub Port and Industrial Estate.
Direct Kuala Tanjung-Ningbo service
"We are also aiming to accelerate the development of Kuala Tanjung International Hub Port and Industrial Estate through this signing," he added.
The scope of the agreement covers the development of Kuala Tanjung International Hub Port and Industrial Estate to become a world-class port and industrial area — this includes optimization of Kuala Tanjung multipurpose terminal by direct shipping from Kuala Tanjung to Ningbo and vice versa through network owned by the Ningbo port operator.
Director-General of Sea Transportation of the Ministry of Transportation Agus H. Purnomo hopes that with this cooperation, more cargo would enter through Kuala Tanjung and it would accelerate the development of the Kuala Tanjung Industrial Estate.
In his statement, Agus said he expects Port of Kuala Tanjung to reduce logistics costs and increase the logistics competitiveness of Indonesia with other countries in the world.
The first phase of the deal is developing the multipurpose terminal, completed in 2018, which currently has 500 metres x 60 metres jetty and a 2.8 kilometres trestle for four-track lanes.
The second phase is the development of a 3,400-hectare industrial estate, while the third and fourth phase will be the hub port and urban area development.
Kuala Tanjung is classified as a deep seaport with -16 m to -17 meter low water surcharge depth, which allows mother vessel ship to berth at Kuala Tanjung.
The seaport said the ability to serve mother vessel ships is very important as the port is located in Malacca Strait, one of the busiest shipping lane in the world.
"With the experience owned by the largest ports in Europe and Asia in collaboration with PT Pelabuhan Indonesia I (Persero), it is expected to be able to push the Port of Kuala Tanjung to become a world-class port and to encourage regional and even national economic growth," Dian noted.
