Pelindo I Starts Port and Terminal Development Projects

Business & Finance

Indonesia’s state-owned port operator PT Pelabuhan Indonesia I (Pelindo I) plans to spend Rb 18 trillion (USD 1.36 billion) to further develop the Belawan International Container Terminal (BICT), and to build container and bulk cargo terminals at the Port of Kuala Tanjung.

Pelindo I signed a Rb 5.05 trillion (USD 382.5 million) loan agreement with three of Indonesia’s state banks to fund the development projects.

Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) have agreed to provide Pelindo I with Rb 1.7 trillion to widen and deepen the berths at BITC from the current 9.8 meters to 14 meters. The works are scheduled to start in August 2015. The expansion is expected to be completed by late 2017, and it will allow BICT to handle 2 million TEUs annually, compared to 1.3 million TEUs the terminal currently handles.

Pelindo I plans to spend the remaining Rb 3.2 trillion of the loan to build a container terminal, a liquid bulk, and a dry bulk terminal at the Port of Kuala Tanjung.

The Port of Kuala Tanjung project is divided in four phases, scheduled to be completed by 2019. The bank loan will be used for the first phase of the project, which includes the construction of a 400-meter-long pier, and installation of utilities, equipment, and information technology .

Once completed, the Kuala Tanjung port will have a liquid bulk terminal with a capacity of 3.5 million tons per year, dry bulk terminal able to handle 1 million tons of cargo per year, and a container terminal with an annual capacity of 400,000 TEUs.

The bank loan will cover 70% of the expenses for both the BITC and the Kuala Tanjung project, with Pelindo I and its partners providing the remaining 30%.

World Maritime News Staff