IPC (Pelindo II) has announced that it will start developing the Tanjung Sauh Port on Batam Island in collaboration with Chinese Merchant’s Group. The construction of the project is expected to cost $515 million USD and will be executed in several phases.

The new port has been designed to serve as an international hub for the West of Indonesia when the first phase of the project begins operations in 2015 and to have a capacity of 4 million TEUs. Its strategic position close to Singapore as well as Sumatra and West Kalimantan will serve to reduce logistics costs in the surrounding region. For the future, the company plans to expand the port’s capacity to 15-20 million TEUs.