Developing port-city conceptual design to improve regional industry competitiveness

As an archipelago country, Indonesia continues to face significant problems with port infrastructures and coastal area including financial shortage, complex bureaucracy not to mention development priority. Port-city is one of a city concept aims to facilitate the regional development by taking port as the hub for economic activities and mobility. This research use Dumai port in Riau Province, the Republic of Indonesia as the case study to evaluate the potential implementation of the port-city concept. Two methods are being used to evaluate the project feasibility namely life-cycle cost approach and public-private partnership scheme. It will regulate the division of responsibility between identified parties. The result shows three components to develop the concept including the port, industrial area and supporting infrastructure. This concept may generate 10.37% of the internal rate of return. This research also suggest public-private partnership scheme to generate optimum division of responsibility between each parties in the project.