Agreement Signed for New Port in Indonesia

The Port of Rotterdam Authority has signed a partnership agreement with the Indonesian Port Corporation Pelindo I in Medan, North Sumatra for the development of the new deep sea port Kuala Tanjung.

Next step now is to carry out a feasibility study for the new port together with Pelindo I. A project organisation will be created for this purpose that will include a number of the Port Authority’s employees locally and based in Rotterdam.

Depending on the outcome of this feasibility study, the Port Authority will assess whether it will enter into a joint venture with Pelindo I for the further realization of the port.

The development of a deep sea port in Indonesia is consistent with the Port Authority’s foreign policy that, among other things, is focused on creating opportunities for Dutch companies abroad. This is why, in 2003, the Port Authority signed a joint venture with the Sultan of Oman – Sohar Industrial Port Company – for the development of the Port of Sohar, and also why it is focusing on developing Porto Central in Brazil.

Kuala Tanjung is a newly to be developed port near the city of Medan located in the Strait of Malacca, one of the most important shipping routes in the world. Joko Widodo (Jokowi), who became Indonesia’s president last year, has made strengthening the maritime sector a spearhead of his policy in order to promote economic growth (6-7% per year). Kuala Tanjung is one of the main projects in the national maritime strategy.