HPC and PT Melchers Melindo Indonesia, part of the international business development group Melchers, have signed a contract with the port operator PT Krakatau Bandar Samudera  to provide an independent study aimed at validating the potential of extending the capacity of Krakatau International Port to handle cargo in addition to dry bulk and break-bulk commodities.

Situated on the West coast of Java, the Krakatau International Port faces the Sunda Strait, one of Southeast Asia’s busiest marine trade routes, connecting the Java Sea with the Indian Ocean. The port serves a large industrial complex for steel production, which includes infrastructure for importing bulk iron ore and exporting steel products from three general cargo berths. Other cargoes handled include corn, soybean, sugar, soybean meal, gypsum coal, salt and general cargo.

PT KBS aims to maximize the potential for the port’s cargo handling ability and further develop its portfolio. The study will include market forecasts, a port operations development concept and financial analysis, which will inform the port’s plan to expand facilities for handling other cargo types. The intention is to further participate in and benefit from the growing trade via the Sunda Strait.

The contracting by PT KBS of the business development partner PT Melchers Melindo Indonesia and global port specialist HPC for this pre-feasibility study follows a Memorandum of Understanding between the three parties in November 2021.

“We aim to ensure that the development of our port infrastructures is in line with our target expectation,” says M. Akbar Djohan, President Director of Krakatau International Port.

“Joining forces with HPC ensures a combination of detailed knowledge about local and global requirements in order to deliver a comprehensive, sound basis for our client’s investment decision,” says Michael Gross, President Director of PT Melchers Melindo Indonesia.

“By concluding a substantiated view of the market opportunities and resources required, we will provide the client with a detailed understanding of the investment opportunity. This will allow for informed decision making and a detailed project risk assessment,” says Dennis Kögeböhn, Partner at HPC and responsible for the APAC region.