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Jakarta Post

Kuala Tanjung Port to start operations in July

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, April 12, 2017   /   10:27 am
Kuala Tanjung Port to start operations in July Workers are busy constructing a peer at the multipurpose terminal of the Kuala Tanjung Port in Batubara regency, North Sumatra, in March 2016 (Tribun Medan/Riski Cahyadi)

After being delayed for about six months, the Kuala Tanjung Port in North Sumatra is expected to start partial operations in July or August this year.

Transportation Minister Budi Karya Sumadi said in Jakarta on Tuesday that the construction of the first phase of the port, which would become one of the country’s international hubs, is between 80 and 90 percent complete.

“At the latest, in August this year, the port will start its operations, although with some limitations,” he said during a press briefing at his office. He said that the Kuala Tanjung port would fully operate as an international hub within the next two years.

The Kuala Tanjung Port is to be developed in several phases — first, the construction of a multipurpose terminal; second, the development of an industrial area; and, third, the development of a container port and residential area. The first phase of the project will cost about US$2.5 trillion (US$188.23 million).

(Read also: Kuala Tanjung Port to maintain international status)

State-owned port operator Pelindio I has teamed up with the Netherlands-based Port of Rotterdam Authority and Dubai-based port operator DP World in building the integrated port, which will in total cost about Rp 34 trillion.

The minister said that he hoped the Port of Rotterdam would start the construction of the second phase of the project in May this year. “If they do not respond well, we will find other investors to cooperate with,” Budi said.

In the strategic location near the busy waters of the Malacca Strait, Kuala Tanjung will be the country's largest transit hub once finished. (dra/bbn)