Construction of monumental new seaport commences

Construction of monumental new seaport commences

Sandy Darmosumarto, The Jakarta Post, Banten

The construction of the Bojonegara International Port (BIP) in
Banten started on Wednesday, with President Megawati
Soekarnoputri, accompanied by other ministers, inaugurating the
start of the work. When completed, it will be the country's
largest seaport.

According to Abdullah Syaifuddin, the director of state-owned
port operator PT Pelabuhan Indonesia II (Pelindo II), the port
will be built in three phases. The first phase will last from
2003 to 2010, when container throughput is expected to reach
153,000 twenty-feet equivalent units (TEU).

By the end of this period, it is expected that 300 meters of
container dock, 15 hectares of container yards, 5,000 square
meters of stacking warehouses and 3 hectares of stacking yards
will have been constructed, while 2 container cranes, 6 rubber-
tired gantry cranes (RTG), 2 reach stackers and 10 of trucks will
be operating at the port.

The next phase is expected to take place from 2010 to 2014,
during which time more terminals will be constructed and more
port equipment will be provided. In addition, the stacking yards
will also be enlarged.

Phase three is expected to take 12 years, from 2014 to 2025.
During this phase, the container and general cargo terminals will
be expanded, and special dedicated wharves will be constructed.

It is expected that the port will start operating in 2007, at
which time the port authority envisages the BIP as handling
large-sized ships with capacities of between 5,000 and 8,000
TEUs.

When fully completed, the BIP will have five terminals and a
capacity of 2.4 million TEUs. The port is expected to be the
largest in the country, with a depth of 16 meters at low water
springs (LWS), potentially replacing the dominant role of Tanjung
Priok port in Jakarta, which is currently the country's largest
and busiest port.

State Minister for State Enterprises Laksamana Sukardi
commented that "around 80 percent of shipments into and out of
Indonesia are transshipped through ports in Malaysia and
Singapore, as a result of which "we incur a US$1.09 billion
yearly loss in foreign exchange." This is mainly because of the
limited capacity of local ports in handling large shipments.

The governor of Banten, Munandar, stated that access to the
port would need to improvement, and a good communications system
required. He added that the new port would need about Rp 5
trillion to 6 trillion in investment in electrical
infrastructure.

The port will work in conjunction with another port planned to
be built at Tanjung Perak, East Java. The BIP will facilitate
shipments to the western Java provinces of Jakarta, Banten and
West Java. The rest would go through Tanjung Perak.

Laksamana said that the total investment in the construction
of the BIP would be Rp 6.5 trillion with Rp 3.5 trillion be taken
from the state budget to finance the provision of basic
infrastructure. Private domestic and foreign investments, as well
as funding from the provincial government, would cover the
remainder.

He added that the "total investment in the construction of the
Tanjung Perak port will amount to Rp 6 trillion."

It is expected that the BIP port will become a hub port for
shipments in the region, a facility integrated with industry in
its hinterland, and capable of contributing to regional economic
growth and providing jobs for the people of the area.

However, some students in the Bojonegara-Puloampel region fear
that local people will not enjoy the trickle-down effect from the
port's development. The students staged a rally outside the
compound where the ceremony was taking place.

Key Facts (2025):

Total area (including industrial area) 500 Ha

Pier length 3,000 meters

Channel depth -16 meters LWS

Gullly depth varied -10, -12 and -16 meters LWS

Area of container yard 96 hectares

Area of open storage 84 hectares

Area of warehouse 5 hectares

Container crane 24 units

Rubber tyred gantry (RTG) crane 72 units

Reach stacker 6 units

Head truck 120 units

Source: Pelindo II