PT Pelindo IV is targeting the much-anticipated Makassar New Port (MNP) in South Sulawesi to have an integrated industrial zone in 2022 - Photo by the Company.

JAKARTA (TheInsiderStories) – Indonesian state-owned port operator PT Pelindo IV is targeting the much-anticipated Makassar New Port (MNP) in South Sulawesi to have an integrated industrial zone in 2022, the management said on Tuesday (01/21). The zone was expected to gear up economic activities in the eastern Indonesian province.

Its president director, Farid Padang, said currently the company continues to carry out development for its multi-year project. This year, the company is also ready to pour a total business capital of Rp5.4 trillion (US$385.71 million), including to continue the construction of the national strategic projects located on the provincial capital of Makassar. Of the total investment prepared this year, MNP absorbed the most amounting to Rp1.9 trillion.

The amount, Padang went on, will be used to increase the installed capacity of MNP and make the mega project an international hub port, so that it can increase direct calls and direct exports.

“After the first stage consisting of four packages is completed, now the second and third stages are being built simultaneously, “he said, stressing the company aims to make MNP a hub for eastern Indonesia, particularly in improving the distribution of goods in Sulawesi, Maluku and Papua, as the eastern half of the country is enjoying rapid development.

Currently, Padang explained, container yard in MNP has an area of ​​16 hectares (ha) and will increase to 48 ha in 2022, with a stacking capacity of 17.5 million TEUs from the existing capacity of 500,000 TEUs per year.

“Now there are three domestic shipping companies carrying out loading and unloading activities at MNP and only one international shipping. We expect the number will increase to eight domestic shipping and two international shipping lines in a bid to meet the surge in container traffic in the eastern half of Indonesia in the future,” he said.

Padang said the project aimed to support the central government’s Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI), especially in developing the Sulawesi corridor. He said the container traffic at Soekarno-Hatta Port in Makassar kept increasing every year, so it needed to anticipate the surging demand before it suffered congestion like the country’s main gateway, Tanjung Priok in Jakarta.

The firm has prepared a 106-hectare site for MNP’s container terminal and another 106 hectares for a multipurpose terminal. It has also prepared an 11.92-hectare area for warehouse facilities and an industrial zone that will support logistics at the port, given that Makassar is the logistics hub for transshipment in the east, along with East Java’s Tanjung Perak Port.

The MNP reported earlier will be integrated with a bonded zone logistics center and with a 150-kilometer railway network from Makassar to the town of Parepare, which is now under construction. Initially, the railway project was set to be completed this year, but the government missed the target due to financial shortage. Up to September 2019, only 40 km of railway tracks have been built.

US$1=Rp14,000

Written by Lexy Nantu, Email: lexy@theinsiderstories.com