Client: Sinar Mas Group, Oki mill

Location: Palembang City, Indonesia  

Scale: 20 berths with a maximum of 300ft and 43 kilometers of artificial canal

Work Period: June 2024-December 2024

Service to Scope: Feasibility study of Port and Waterway Engineering

The OKI Pulp and Paper Mill, one of Sinar Mas Group's largest globally, is located on the upper reaches of the Sugihan River approximately 60km from Palembang, Sumatra, Indonesia. Currently under expansion, the mill's Phase IV operation will require an annual logistics capacity of 36.37 million tons, while existing transportation corridors can only handle 15 million tons annually. Thus, a waterborne logistics solution involving ports and navigation channels was planned.

     Key challenges include complex existing logistics routes increasing construction difficulties, along with issues in local raw material sourcing and utilization.

     The project involves diverse cargo types and intricate transport routes, making economic logistics planning critical. Through field studies, the design team optimized existing routes and added a major water transport channel, significantly improving efficiency with an investment payback period of 4.4 years, resolving capacity bottlenecks. Located far from urban centers with primitive transportation, raw material delivery during construction was highly challenging. The team adapted by using locally sourced materials like wooden piles commonly available at the mill, reducing costs and construction complexity.