BergerWorld: 3rd Quarter 2007

Indonesia, comprised of 17,500 islands, is the world's largest archipelagic state. With a population of over 200 million, it is also one of the world's most populous. The Indonesian archipelago has been an important trade region since at least the seventh century, when the Srivijaya Kingdom formed trade links with China. Today, Indonesia's principal import and export markets include Japan, the United States and Singapore. One of the nation's largest industries is ammonia and urea production, and PT Pupuk Kaltim, a state-owned fertilizer producer, is the largest in Asia, annually producing 1,850,000 tons of ammonia and 2,980,000 tons of urea. To export its product, PT Pupuk Kaltim owns and manages its own port, which can presently accommodate vessels of up to 60,000 Deadweight Tonnage (DWT). To prepare for substantial planned increases in production, PT Pupuk Kaltim proposed to construct an additional pier that can service vessels of up to 100,000 DWT and be used as a multi-purpose facility for general cargo, bulk and containers. The new state-of-the-art pier will include container, bulk and cargo storage, conveyor systems, gantry and mobile cranes, administration and port traffic control centers and related support infrastructure.

The Berger Group was retained by PT Pupuk Kaltim to review and update the master plans. The Team first conducted detailed traffic studies; examined existing Indonesian maritime policies; and evaluated future trends in shipping and other activities that could potentially affect port traffic. Berger also reviewed existing port master plans, projected cargo flows and vessel services, funding needs and tariff structures. The Team then conducted hydrographic, topographic and maritime surveys, as well as a review of the port's proposed facility and operational improvements. Finally, Berger's findings were submitted to PT Pupuk Kaltim in a detailed report and included forecasts of future demand; an evaluation of current capacity; a review of current port operations; alternate development plans; and updated master plans, including cost estimates and implementation schedules.