THE Port of Rotterdam Authority has an agreement with the Indonesian Port Corporation Pelindo I in Medan in North Sumatra for the development of the new deep sea port at Kuala Tanjung.

The Rotterdam Port Authority will now carry out a feasibility study for the new port together with Pelindo I from which a project organisation will be created to continue the project.

It will be composed of a number of Rotterdam port employees. Depending on the outcome of this feasibility study, the Rotterdam authority will decide on entering a joint venture with Pelindo I.

"We are confident that the Port Authority and Pelindo I will form a strong team that will serve the country and provide for a better future," said Rotterdam Port Authority CEO Allard Castelein. 

The Mayor of Rotterdam was present during the signing and indicated that he hoped that new port will create many new jobs in Sumatra. "This is a good opportunity to develop new activities and to attract investors," he said.

The Rotterdam Port Authority's foreign policy aims to create opportunities for Dutch companies abroad. Participation in port development in countries that are of interest to the port is one of the ways in which to achieve this.

Kuala Tanjung is a newly to be developed port near the city of Medan on the Strait of Malacca, an important trade lane. Jakarta has made strengthening the maritime sector a priority state policy.