Rotterdam to Build Indonesian Port

signing ceremony

Published Sep 1, 2015 1:02 AM by The Maritime Executive

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. 

The port authority will now carry out a feasibility study for the new port together with Pelindo I. A project organization 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 authority will assess whether it will enter into a joint venture with Pelindo I for the further realization of the port.

CEO Allard Castelein signed the agreement on behalf of the Port Authority: “We want to share our knowledge in the construction, development and management of Kuala Tanjung. We are confident that the Port Authority and Pelindo I will form a strong team that will serve the country and provide for a better future.” 

Castelein will take part in a Rotterdam delegation that will travel through Indonesia under the leadership of Ahmed Aboutaleb. The Mayor of Rotterdam was present during the signing and indicated that he hoped that new port will create many new jobs in Sumatra. “This is a good opportunity to develop new activities and to attract investors.”

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, 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 percent per year). Kuala Tanjung is one of the main projects in the national maritime strategy.

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. Participation in port development in countries that are of interest to the port is one of the ways in which to achieve this. 

That 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.