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ublicly listed highway company PT Jasa Marga and state owned port operator PT Pelabuhan Indonesia II (Pelindo II) signed on Friday a memorandum of understanding (MoU) on a plan to develop a toll road to ease traffic to Kalibaru Port in North Jakarta.

“This is a toll road heading to the port. The road is also part of efforts to unravel congestion around the Tanjung Priok area,” Jasa Marga president director Adityawarman said after the signing.

The road, according to Adityawarman, will be 7 kilometers long and include an elevated 4-kilometer stretch over the sea.

“The project is estimated to cost Rp 4 trillion [US$416 million]. About 25 percent will be financed by internal cash and the other 75 percent by loans from local banks,” Adityawarman said.

Construction is expected to start before the end of the year and be complete by 2014, when the first stage of development of Kalibaru Port is complete.

Plans call for the toll road to connect Kalibaru Port with the Jakarta Outer Ring Road.

“When the access road is finished, trucks will be able to make four to five trips a day, compared to currently only one trip due to congestion in the area,” Pelindo II president director Richard Joost Lino said.

Pelindo II is working on the development of Kalibaru Port to support the country’s main port, Tanjung Priok, which has been operating over capacity. The development of Kalibaru, also known as New Priok, will need US$4 billion, according to estimates.

Pelindo II obtained a concession to operate Kalibaru Port for 99 years. Lino said that construction would start next week. The port operator has appointed PT PP to build the project.

Part of the planned toll road will use land owned by industrial bonded zone developer PT Kawasan Berikat Nusantara (KBN). Pelindo also signed on Friday an agreement with KBN to integrate the development of New Priok with KBN’s area, which will be the main gateway to the terminals.

“KBN will benefit because the sale value of its industrial areas will also increase because of the improvement of traffic. The price may increase to Rp 6 million per square meter from a current Rp 800,000,” KBN president director Raharjo Arjosiswoyo said.

Raharjo said that KBN has 90 hectares in Marunda of North Jakarta that will be passed by Jasa Marga-Pelindo II toll road.

Lino said that the port operator also planned to build a railroad along the road.

Pelindo II has also asked the Public Works Ministry to also clear land for the railroad development.