The Netherlands Port of Rotterdam Authority (Port Authority) has entered into a joint venture agreement with Indonesia’s state-owned Pelindo 1 to construct a new port, Kuala Tanjung.

The new port will be located on the Strait of Malacca, near the Indonesian island of Sumatra.

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Both Port Authority and Pelindo 1 are expected to jointly make an investment decision required to develop the new port.

"With the signing of two agreements, the delegation’s visit can be considered a resounding success for the Port Authority."

In addition, Port Authority has signed a memorandum of understanding (MoU) with Pelindo 2 and JakPro to expand the port of Jakarta, Indonesia.

The state-owned Pelindo 2 is responsible for Jakarta and other ports, while JakPro is the land development company of the City District of Jakarta.

As part of the deal, the three parties will jointly direct and support a preparatory feasibility study for the future expansion of the port of Jakarta at other islands.

Port of Rotterdam Authority CEO Allard Castelein said: “With the signing of two agreements, the delegation’s visit can be considered a resounding success for the Port Authority.

“The agreements are a major step forward for our activities here in Indonesia. They reflect the Indonesian Government’s confidence in our efforts.”

The Port Authority currently looks after its projects in Indonesia through a new office, which was opened in the City District earlier this year.

Spreading across 12,500ha of land and water, the port of Rotterdam currently handles around 30,000 seagoing vessels and 110,000 inland vessels every year.

Image: Deal signing between Port of Rotterdam Authority and Indonesia’s Pelindo 1 officials. Photo: courtesy of Port of Rotterdam.