Kijing Project

Project Detail

KIJING – International Port in West Kalimantan

Port Vision.

The need for Kijing Port stems from the fact that existing port at Pontianak (70 km from Kijing) can not meet the increasing cargo demand due to: First, limited draft restrict the size/type of vessels which can call. Second, high sedimentation in the rives site means expending dredging is not a viable  solution. And third, reported yard occupancy ratio exceeding capacity and constraints may be created by a future highway  viaduct cross the estuary approaches to the port which would restrict vessel airdraft/size.

The development needs of west Kalimantan, the vision for Kijing Port as: Kijing Port as the sole deep water port in West Kalimantan, will be the Gateway Port West Kalimantan cargoes and handle both container and bulk cargoes, stimulating local industrialisation patterns while benefiting  from the increasing cargo generation created.

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The Figure Illustrates the Vision Port Of Kijing As A Gateway Port And How It Connects With Others Regional Ports

 

 

 

 

Overview of Regional Port and Cargo Markets

Container throughput in Indonesia recorded a growth of nearly 8% in the last decade, and Kijing is in a good position as a gateway Port to serve domestic cargo to / from different areas of west Kalimantan.

IPC currently owns the largest existing port in west Kalimantan-The Port of Pontianak, however this port has encountered a development bottleneck due limitation in draft an in the available landside storage area. Therefore the Port of Kijing, as a deep water port with sound natural conditions, is needed to help release the capacity pressure and capture the increasing demand.

The maximize the combined interest of the proposed Kijing Port and the exisisting Port of Pontianak, the future positioning of Pontianak Port will be to handle key accounts and market segments for certain container cargoes and most bulk cargoes. While, with Kijing as the West Kalimantan gateway it is anticipated that the most adjacent ports (such as the port of Pontianak, Ketapang and Sintete) will act as feeder ports to the future development.

The hinterland coverage for kijing port is mainly west Kalimantan which makes up about 11,06 % of Kalimantan’s GDP. Most of the economic activities within west Kalimantan take place adjacent to Kijing, in particular, Kota Pontianak and Kubu Raya Region that account for about 40% of the GDP of West Kalimantan.

Key commodities generated or required in the hinterland include consumer goods, palm oil, bauxite, agricultural and construction materials.

Demand Drivers of Kijing Port

The main demand drivers of Kijing Port are:

  • Increasing Local Consumption Growth and Continued economic growth.

  The continued increasing in the local population and expenditure on consumers goods has led to the steady growth of container cargoes handled at the Port of Pontianak. In the past 9 years, the Port’s container traffic increasing at the a CAGR of 4.6% per years.

  • Logistics Cost savings by Deep Water Terminal.

Kijing Port is most appealing to container cargo shippers currently using Port of Tanjung Priok (and others ports in Java and Sumatra) as the transshipment hub to import cargo from the regions to the north, e.g., Singapore.

By Shipping directly to/from Kijing Port, significant shipping cost and time are likely to be saved, because large container vessels from Singapore can directly berth at Kijing Port in West Kalimantan, without travelling to Jakarta for necessary transhipment and the development  of larger container vessels will bring down the unit freight cost.

In summary, shipping cost and time savings create huge incentives for liners currently calling at Pontianak Port and Other regional ports to shift to Kijing Port is expected to stimulated a considerable future share of containerised cargoes in the West Kalimantan region.

  • Industrial Development.

West Kalimantan is resource rich in bauxite and palm oil, as wel as construction raw materials of wood, rubber and agricultural goods.

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