Zhejiang and Rotterdam ink agreement to develop Kuala Tanjung Port
Date: 8 May 2021
PT Pelabuhan Indonesia I (Persero) or Pelindo I had signed a Memorandum of Understanding (MoU) and a Term Sheet for the Kuala Tanjung Port and Industrial Estate Development Project Cooperation with the Port of Rotterdam and Zhejiang Provincial Seaport Investment & Operation Group Co., Ltd. (Zhejiang).
President Director of Pelindo I, Prasetyo, explained that the signing of MoU and Term Sheet will accelerate the development of Kuala Tanjung PIE and will also embody Kuala Tanjung PIE as Indonesia's Logistics and Supply Chain Hub.
According to Prasetyo, with the support of Port of Rotterdam and Zhejiang Seaport Group which have a global logistics network, the strategic location of Kuala Tanjung PIE, potential hinterland, and full support from the government, Pelindo I believes that Kuala Tanjung PIE will become Indonesia's Logistic and Supply Chain Hub.
"We are also confident that Kuala Tanjung PIE will become one of the new economic gateways in ASEAN as well as an important node in global trade and logistics networks connecting Europe and Asia," he said in a press release on Saturday (8/5/2021).
He explained that Pelindo I, Port of Rotterdam and Zhejiang Seaport Group would work together in optimising the Kuala Tanjung Multipurpose Terminal (KTMT). Previously KTMT was operated by Pelindo I's subsidiary, PT Prima Multi Terminal (PMT). The Port of Rotterdam and the Zhejiang Seaport Group will be part of the shareholders in PMT, together with Pelindo I, PT Waskita Karya Tbk and PT Pembangunan Perumahan Tbk. In this cooperation, direct call ships will also be sent from Ningbo Zhoushan Port to Kuala Tanjung Port.
In the industrial zone sector, Port of Rotterdam and Zhejiang Seaport Group will cooperate with Pelindo I subsidiary—PT Prima Pembangunan Kawasan—in developing an industrial area in Kuala Tanjung covering an area of 200 hectares in the first phase provided for industries from China.
In addition, the signing of the term sheet between Pelindo I, Port of Rotterdam and Zhejiang Seaport Group also included a Term Sheet Conditional Share Subscription Agreement (CSSA), Term Sheet Shareholder Agreement (SHA), Term Sheet Industrial Estate Co-Development (IECD).
The development of Kuala Tanjung PIE, located on the main route of Malacca Strait with 25 percent of world trade commodities crossing by and supported by a substantial hinterland in 10 provinces on the Sumatra island, will make Kuala Tanjung PIE more strategic and potentially a vital node in the logistics and global supply chain network. Kuala Tanjung is also integrated and directly connected to the Sei Mangkei Industrial Zone and designated as a Special Economic Zone (KEK).
In addition, Kuala Tanjung will implement the concept of smart port and smart industrial area. It will be supported by applying qualified information technology in the area so that it will later become a modern industrial area on an international scale.
KTMT, which is part of Kuala Tanjung PIE operating since 2019, is projected as The Next Indonesia's Logistics and Supply Chain Hub. Having a port pool depth of -17 mLWS can accommodate large ships weighing 50,000 DWT and various types of cargo from containers, liquid bulk to general cargo.