BRUNEI MARITIME MASTERPLAN Muara port development strategy
Faculty of Civil Engineering and Geosciences Department of Hydraulic and Geotechnic Engineering Section of Hydraulic Engineering Name student: A.F. Prinsen Study number: 9672063
COMMITTEE
Chairman Prof. H.Ligteringen MSc Section: Hydraulic Engineering, Ports and waterways Email address: [email protected]
Member: R. Groenveld MSc Section: Hydraulic Engineering Email address: [email protected]
Member: J.P. Noppen BBE BSc MSc Section: Processes in Building Email address: [email protected]
Member: T. Vellinga MSc Section: Hydraulic Engineering Email address: [email protected]
External Advisor: R. Clarke Function: Director Ports and Dockyard, Halcrow Group Ltd. Email address: [email protected]
BRUNEI MARITIME MASTERPLAN
Acknowledgment This research project completes my study at the faculty Civil Engineering of the Technical University Delft. The project was offered by Halcrow Group Ltd. and provided me with the opportunity to contribute to the maritime development of Brunei.
This study provides insight of the development possibilities of Brunei maritime infrastructure and Muara port. I hope that the structure of the approach and its outcome contribute to the realisation of Brunei’s vision on the future maritime development possibilities.
I would like to thank my graduation committee members for their guidance, critical remarks and contribution: Chairman prof. ir. H. Ligteringen ir. R. Groenveld ir. J.P. Noppen ir. T. Vellinga.
Special thanks goes to mister Richard Clarke of the Ports and Dockyards department of Halcrow Group in London for providing me with the opportunity gaining working experience abroad.
Alexander Prinsen The Hague, July 2004
BRUNEI MARITIME MASTERPLAN - i - Summary
Summary
The Sultanate of Brunei, located on the island of Borneo in Southeast Asia, is a country with large oil and gas reserves that has been able to create economic growth from its oil and gas revenues. The Asian crisis and fluctuating world oil and gas prices have shown that Brunei’s economic base is vulnerable as it depends heavily on these revenues. Furthermore new oil and gas finds are becoming scarce and oil and gas production may decline in the future. With the aim of creating a more balanced economy the Brunei Government has developed since its independence in 1974 National Development Plans. Currently the 7th NDP is being implemented and more emphasis is put on attracting (heavy) manufacturing and high-tech industry. The government has selected 10 industrial areas (722 ha) in Brunei for industrial development. On one of these sites, Sungai Liang, plans are to develop large scale industrial activity such as an Alumina Smelter and Tire Recycling Plant. On the other industrial sites manufacturing and services industry are to be developed.
Substantial growth of the Brunei economy goes hand in hand with a review of its present maritime infrastructure. Gaining insight into the implications of an increase in the various cargo flows (dry bulk, multi-purpose and container) on the maritime (Muara Port and Sungai Liang) and land (truck) infrastructure, will be the main focus of this study. The project goal is defined as: ‘To determine for Brunei the optimal terminal locations for the 2015 cargo flows and to develop for Muara port a phased expansion plan.’
The general cargo port of Brunei, Muara port, has facilities for containers and multi-purpose cargo. The container terminal (16 ha) has a capacity for 200,000 TEU and the multi-purpose terminal (10 ha) has a capacity of approximate 1.0 million tons. The planned expansion of the Brunei economy, based on large scale non oil and gas export oriented projects, will therefore have a large impact on the Brunei maritime infrastructure. The existing port facilities are not sufficient to accommodate the foreseen increases in cargo volumes.
Three cargo scenarios are developed (low, average and high) to estimate the future cargo volumes. The individual components which generate cargo volumes are determined. The total cargo volume in any year under consideration is calculated as the sum of the individual components. The three individual cargo volume components are based on the real GDP growth (excluding oil and gas), the preferred large scale (heavy) industry investment options at Sungai Liang and the development of the other 9 industrial sites. The average scenario for the year 2015 is chosen for further detailed study. The expected throughput for Brunei of 6.9 million tons is divided between Muara port (3.0 million) and at the west coast near Sungai Liang (3.9 million tons).
The potential terminal locations are evaluated and development of Kuala Belait is discarded, based on the extensive redevelopment required. This leaves Sungai Liang and Muara port as the preferred terminal locations. The conclusion from the hydraulic analysis is that the significant wave height at Sungai Liang (Hs > 0.5m, occurring 50% of the time) does exclude the container terminal option. This results in handling the container ships in Muara port.
Five routing alternatives, via water and/or land, are generated for the two terminal locations and the cargo volumes involved: direct shipping, Sungai Liang dry bulk jetty and Muara port land transport, Sungai Liang dry bulk jetty and Muara port (multi-purpose) transshipment, Muara port (multi-purpose and dry bulk) transshipment and finally Muara port full land transport option.
BRUNEI MARITIME MASTERPLAN - ii - Summary
Through a MCE based on four distinctive costs criteria (nautical, hydraulic, transportation and construction) these different alternatives are evaluated. Sungai Liang showed the highest potential as (direct) dry bulk handling terminal location, whereas Muara port is selected for container and multi-purpose cargo handling facilities with truck transport to the hinterland.
For Muara port the terminal area dimensions and the required berth length are determined. For 2015 the multi-purpose and container terminal require 26 ha each (total 52 ha). This is 26 ha more than currently in use. The average shipment volumes for the container and multi-purpose are 250 TEU and 4,000 tons respectively. Six multi-purpose berths (939 m) and two container berths (488 m) are required. This is respectively 328 meters and 238 meters more than the current situation.
To accommodate the expansion in Muara port four alternative layouts are developed: maximum use existing waterfront (expansion of the terminals to each side), maximum use total waterfront (relocating the multi-purpose terminal), minimum use Pulau Muara Besar (relocating the container terminal to the island) and maximum use Pulau Muara Besar (relocating both terminals to the island). The results from a MCE conducted show that the full development of Pulau Muara Besar has the highest score. This is the result of relocating all maritime activity away from the urban area to the island where space is in abundance and no disturbance occurs to the village of Muara. The relocation of the multi-purpose terminal in Muara port is regarded as the worst. Taking also the high capital cost of the latter into account, this alternative is discarded.
Immediate port expansion at Pulau Muara Besar is not feasible as the development of the island has a lead time of approximately nine years, whereas the multi-purpose terminal requires expansion in 2007. This has lead to the conclusion that a phased development approach must be chosen. First the existing waterfront of Muara port has to be developed. Approximately 25 ha is available for expansion until 2015. Parallel with the expansion in the port the basic infrastructure for Pulau Muara Besar must be developed consisting of a bridge and bypass road around Muara village. This phasing will make it possible to relocate the container terminal in 2013 to the island and providing enough space for the multi-purpose terminal on the Muara port waterfront till 2030.
Expanding Muara port increases the traffic, industrial noise and safety risks for the surrounding urban area. Noise pollution will require some mitigating measures before 2015. Early construction of the bypass road will alleviate the negative effects of the increased traffic on the inhabitants of Muara village. The hinterland connection capacity itself is sufficient until 2030. With the foreseen port expansion to the island it is recommended to develop the bypass road at an early date.
The final conclusion is a phased development approach for Muara port is possible, via the existing waterfront to Pulau Muara Besar and that expansion of Muara port and the development of Pulau Muara Besar has to start as soon as possible. The total investment cost for the phased port development is estimated to be 330 million dollar.
BRUNEI MARITIME MASTERPLAN - iii - Table of contents
Table of contents ACKNOWLEDGMENT...... I SUMMARY...... II TABLE OF CONTENTS...... IV LIST OF TABLES ...... VIII LIST OF FIGURES...... IX 1 INTRODUCTION...... 1 2 SCOPE OF RESEARCH...... 2 2.1 PROBLEM DEFINITION...... 2 2.2 PROJECT GOAL...... 2 3 PORT DEVELOPMENT FRAME WORK...... 4 3.1 HISTORICAL PORT DEVELOPMENT THEORY...... 4 3.2 THE FUNCTIONING OF A PORT...... 4 3.3 PORT MASTERPLAN METHODOLOGY ...... 4 3.4 FRAMEWORK STUDY...... 5 PART ONE; PRESENT SITUATION BRUNEI ...... 6 4 GENERAL OVERVIEW BRUNEI ...... 6 4.1 ECONOMIC FACTS ...... 6 4.2 EXISTING MARITIME INFRASTRUCTURE...... 8 4.2.1 Ports and terminals West coast ...... 8 4.2.2 Port locations in Brunei Bay ...... 9 4.3 HINTERLAND INFRASTRUCTURE...... 10 4.3.1 Road infrastructure ...... 10 4.3.2 Rail infrastructure ...... 10 4.3.3 Waterways ...... 10 4.3.4 Power infrastructure ...... 10 4.3.5 Pipeline infrastructure ...... 10 4.4 METEOROLOGICAL AND HYDRAULIC CONDITIONS...... 11 4.4.1 Wind ...... 11 4.4.2 Wave ...... 12 4.4.3 Current ...... 13 4.4.4 Tide...... 13 5 MUARA PORT INFORMATION AND PERFORMANCE...... 14 5.1 RELEVANT DETAILS OF MUARA PORT...... 14 5.2 MUARA PORT THROUGHPUT ...... 15 5.2.1 Reconciliation of both sets...... 15 5.2.2 Container terminal ...... 16 5.2.3 The Multi purpose terminal...... 17 5.3 SURROUNDING AREA MUARA PORT ...... 18 PART TWO; CARGO AND MARITIME SCENARIOS ...... 19 6 SCENARIO DEVELOPMENT...... 19 6.1 NATIONAL INDUSTRIAL PLANS ...... 19 6.2 CONTAINER DEVELOPMENTS REGIONAL AND WORLD WIDE ...... 20 6.3 SCENARIOS ...... 21 6.3.1 Component 1: the real GDP growth (excluding oil and gas)...... 22
BRUNEI MARITIME MASTERPLAN - iv - Table of contents
6.3.2 Component 2: the preferred large scale (heavy) industry investment options at Sungai Liang...... 23 6.3.3 Component 3: the development of the other 9 industrial sites ...... 24 6.4 RESULTS FROM THE SCENARIOS...... 25 6.4.1 Results scenarios ...... 25 6.4.2 Industrial development per district ...... 26 6.5 MARITIME OVERVIEW...... 26 6.5.1 Regional Maritime history...... 26 6.5.2 Container ship size overview...... 27 6.5.3 Multi-purpose ship size overview ...... 27 6.5.4 Dry Bulk ship size overview ...... 27 PART THREE; DEVELOPMENT OF ROUTING AND PORT LAYOUT ALTERNATIVES...... 28 7 EVALUATION OF POTENTIAL TERMINAL LOCATIONS ...... 28 7.1 CARGO VOLUMES PER DISTRICT ...... 28 7.2 DESIGN SHIP SIZES ...... 29 7.2.1 Container ship ...... 29 7.2.2 Multi-purpose ship ...... 29 7.2.3 Dry bulk ship ...... 29 7.3 HYDRAULIC ANALYSIS ...... 30 7.3.1 Berthing operational limits due to wind speed...... 30 7.3.2 Berthing operational limits due to significant wave height...... 30 7.3.3 Additional information Design parameters for Sungai Liang...... 31 7.3.4 Wave period...... 31 7.3.5 Current ...... 32 7.4 NAUTICAL REQUIREMENTS...... 32 7.4.1 Approach channel...... 32 7.4.2 Manoeuvring area ...... 35 7.5 CONCLUSIONS...... 37 8 NATIONAL CARGO ROUTING...... 38 8.1 ROUTING ALTERNATIVES ...... 38 8.1.1 Alternative 1; Direct shipping...... 39 8.1.2 Alternative 2: Bulk jetty and Muara port land transport ...... 40 8.1.3 Alternative 3; Bulk jetty and Muara port transshipment...... 41 8.1.4 Alternative 4: Muara port transshipment...... 41 8.1.5 Alternative 5: Muara port full option...... 42 8.2 EVALUATION OF CARGO ROUTING ALTERNATIVE ...... 43 8.2.1 “Hard” criteria ...... 44 8.2.2 “Soft” criteria ...... 45 8.3 RESULTS AND CONCLUSION...... 46 9 MUARA PORT SPATIAL REQUIREMENTS ...... 47 9.1 TERMINAL AREA REQUIRED...... 47 9.1.1 Container terminal ...... 47 9.1.2 Multi-purpose terminal...... 49 9.2 BERTH LENGTH REQUIRED...... 50 9.2.1 Queuing theory...... 51 9.2.2 Arrival rate...... 51 9.2.3 Service rate...... 52 9.2.4 Service system chosen ...... 52 9.2.5 Berth calculations...... 53 9.3 CONCLUSIONS...... 53 10 MUARA PORT LAY-OUTS DEVELOPMENT FOR 2015 ...... 54
BRUNEI MARITIME MASTERPLAN - v - Table of contents
10.1 MUARA PORT DEVELOPMENT STARTING POINTS...... 54 10.1.1 Present Muara port land use...... 54 10.1.2 Muara port terminal limitations...... 54 10.2 MUARA PORT LAY OUT ALTERNATIVES DEVELOPMENT ...... 56 10.2.1 Introduction...... 56 10.2.2 Layout 1; Maximum use of the existing waterfront ...... 57 10.2.3 Layout 2; Maximum use of the total waterfront ...... 58 10.2.4 Layout 3; Minimum Pulau Muara Besar development ...... 59 10.2.5 Layout 4; Maximum Pulau Muara Besar development...... 60 10.3 MULTI CRITERIA EVALUATION SELECTION METHOD...... 61 10.3.1 Criteria ...... 61 10.3.2 Determining individual weight factors...... 61 10.3.3 Nautical & Hydrodynamic aspects...... 61 10.3.4 Nautical safety and accessibility ...... 62 10.3.5 Future ship size ...... 62 10.3.6 Terminal expansion flexibility ...... 62 10.3.7 Urban impact...... 63 10.3.8 Infrastructural changes ...... 63 10.3.9 Port morphology...... 63 10.4 SCORING TABLE...... 64 10.4.1 Sensitivity analysis ...... 64 11 MUARA PORT DEVELOPMENT STRATEGY ...... 66 11.1 AVAILABLE AREA ...... 66 11.2 LEAD TIME ...... 67 11.3 COSTS ESTIMATE DEVELOPMENT ...... 68 11.4 ENVIRONMENTAL IMPACT ASSESSMENT ...... 69 11.4.1 Introduction...... 69 11.4.2 Methodology followed ...... 70 11.4.3 Frame work ...... 70 11.4.4 Determining relevant issues for this study ...... 71 11.4.5 Valuable areas...... 71 11.4.6 Hinterland traffic impact (congestion, truck emissions/noise/safety) ...... 71 11.4.7 Noise pollution by port activities...... 73 11.4.8 Hazardous cargo & Risks...... 75 11.4.9 Alternative 4 implications...... 75 11.5 SYNTHESIS AND CONCLUSIONS ...... 76 12 CONCLUSIONS AND RECOMMENDATIONS ...... 77 12.1 CONCLUSIONS...... 77 12.2 RECOMMENDATIONS ...... 78 13 REFERENCE LIST ...... 79 APPENDIX ...... 81 A HISTORICAL BACKGROUND BRUNEI...... I B BRUNEI ECONOMIC BACKGROUND ...... II B.1 POPULATION ...... II B.2 WORK FORCE & SECTORS...... II B.3 ECONOMY...... III B.4 TRADE FIGURES ...... III B.5 TRADE STATISTICS OF BRUNEI ...... III
BRUNEI MARITIME MASTERPLAN - vi - Table of contents
C MAP ROAD INFRASTRUCTURE...... V D APPENDIX ENERGY AND OFFSHORE INFRASTRUCTURE ...... VI D.1 POWER SUPPLY BRUNEI...... VI D.2 OFFSHORE INDUSTRY INFRASTRUCTURE...... VI E RECONCILIATION CARGO THROUGHPUT TABLE...... VIII F CARGO FORECAST RESULTS ...... X G VESSEL SIZE CHARACTERISTICS...... XII H WAVECLIMATE.COM DATA ...... XIV I BERTH CALCULATION...... XVI J AREA RESTRICTIONS TERMINALS ...... XVII K ENVIRONMENTAL MANAGEMENT ASPECTS...... XVIII L ENVIRONMENTAL BACKGROUND BRUNEI...... XXII L.1 ENVIRONMENTAL FACTS ...... XXII L.2 GOVERNMENT ENVIRONMENTAL PROTECTION POLICY...... XXII L.3 INTERNATIONAL & NATIONAL ENVIRONMENTAL TREATIES ...... XXIII L.4 COASTLINE ...... XXIII L.5 ISLANDS...... XXIII L.6 ECOLOGY ...... XXIII L.7 INLAND JUNGLE AND FOREST ...... XXIII L.8 MANGROVE AREAS ...... XXIV L.9 CORAL REEFS...... XXIV L.10 SPECIES ...... XXV A HISTORICAL BACKGROUND BRUNEI...... I B BRUNEI ECONOMIC BACKGROUND ...... II C MAP ROAD INFRASTRUCTURE...... V D APPENDIX ENERGY AND OFFSHORE INFRASTRUCTURE ...... VI E RECONCILIATION CARGO THROUGHPUT TABLE...... VIII F CARGO FORECAST RESULTS ...... X G VESSEL SIZE CHARACTERISTICS...... XII H WAVECLIMATE.COM DATA ...... XIV I BERTH CALCULATION...... XVI J AREA RESTRICTIONS TERMINALS ...... XVII K ENVIRONMENTAL MANAGEMENT ASPECTS...... XVIII L ENVIRONMENTAL BACKGROUND BRUNEI...... XXII
BRUNEI MARITIME MASTERPLAN - vii - Table of contents
List of Tables Table 4-1 APEC region real GDP Growth...... 6 Table 4-2 Real GDP growth rate broken down for 1993 to 2001 ...... 7 Table 4-3 Total Export revenue from 1993 to 2001...... 7 Table 4-4 Total import value from 1993 to 2001...... 7 Table 4-5 Hs for Muara port (Waveclimate.com)...... 13 Table 5-1 Overview terminals in Muara port...... 14 Table 5-2 Set 1992 – 1996 ...... 15 Table 5-3 Set 1996 – 2000 ...... 15 Table 5-4 Reconciled Annual throughput Muara port terminals for years 1992 - 2000 ...... 16 Table 5-5 Average container shipment...... 16 Table 5-6 Berth occupancy container terminal ...... 17 Table 5-7 Berth occupancy Multi-purpose terminal 1992 – 2000...... 18 Table 5-8 UNCTAD multi-purpose terminal berth occupancy recommendations...... 18 Table 5-9 No. of berths estimate multi-purpose terminal 1992 - 2000 ...... 18 Table 5-10 Maximum number of berths per ship at Multi-purpose terminal...... 18 Table 6-1 Industrial options ...... 19 Table 6-2 Industrial site size and activity...... 20 Table 6-3 Global Container Volume, according to ESCAP...... 21 Table 6-4 Container throughput increase Southeast Asia 1990 – 1999 ...... 21 Table 6-5 Cargo growth scenarios...... 22 Table 6-6 Container and multi-purpose cargo growth percentage 2000 - 2030...... 23 Table 6-7 Input 2005 cargo volumes...... 23 Table 6-8 Tire Recycling Plant cargo and Alumina Smelter cargo full capacity...... 24 Table 6-9 Cargo forecast results for selected years...... 25 Table 6-10 Percentage of the total industrial site for each District ...... 26 Table 6-11 Cargo handled per district until 2030...... 26 Table 7-1 Expected container ship dimensions...... 29 Table 7-2 Expected multi-purpose ship dimensions ...... 29 Table 7-3 Expected dry bulk ship dimensions ...... 30 Table 7-4 Limiting wind velocity for ship operations...... 30 Table 7-5 Limiting Hs and the resulted downtime for the terminals ...... 31 Table 7-6 Reference hydraulic information ...... 31 Table 7-7 limiting current values for berthing ...... 32 Table 7-8 Approach channel depth adjustments ...... 33 Table 7-9 Approach channel width calculation...... 35 Table 7-10 Width approach channels...... 35 Table 7-11 Required basin width and depth ships...... 36 Table 7-12 Turning circle dimensions...... 36 Table 8-1 Weighted score routing criteria...... 44 Table 8-2 Hard criteria score...... 46 Table 8-3 Sensitivity analysis...... 46 Table 8-4 Soft criteria score ...... 46 Table 9-1 Required total stacking area container terminal...... 48 Table 9-2 Total container terminal area ...... 49 Table 9-3 Total multi-purpose terminal area required...... 50 Table 9-4 Average container shipment volume in TEU forecasted to 2030 ...... 51 Table 9-5 Average multi-purpose shipment volume forecasted to 2030...... 51 Table 9-6 Total ships call to Brunei ...... 52 Table 9-7 Queue system and waiting time criteria...... 52 Table 9-8 Number of berths per terminal type ...... 53 Table 9-9 Total berth length required 2015 – 2030...... 53 Table 10-1 Muara port land use ...... 54 Table 10-2 Terminal area requirements ...... 56
BRUNEI MARITIME MASTERPLAN - viii - Table of contents
Table 10-3 Weighted score criteria ...... 61 Table 10-4 Multi Criteria Evaluation result ...... 64 Table 10-5 Validation sets...... 64 Table 11-1 Lead time port development ...... 67 Table 11-2 Environmental port issues...... 71 Table 11-3 Estimated generated traffic for Muara port...... 72 List of Figures Figure1-1 Southeast Asia ...... 1 Figure 1-2 Brunei map ...... 1 Figure 3-1 Masterplan time frame...... 4 Figure 3-2 Framework report ...... 5 Figure 4-1 Average price crude oil...... 6 Figure 4-2 Production oil and gas for Brunei...... 6 Figure 4-3 ASEAN water and land infrastructure...... 8 Figure 4-4 Map West coast of Brunei ...... 9 Figure 4-5 Maps of the Brunei Bay...... 10 Figure 4-6 Average wind speed altimeter ...... 11 Figure 4-7 Seasonality wind speed...... 12 Figure 4-8 Wind scatter diagram...... 12 Figure 4-9 Average Hs (SAR data)...... 12 Figure 4-10 Seasonality Hs ...... 12 Figure 4-11 Offshore wave scatter diagram Brunei ...... 12 Figure 4-12 Sungai Liang Tidal Range February 2004...... 13 Figure 4-13 Muara port Tidal Range February 2004 ...... 13 Figure 5-1 Photo Muara Port...... 14 Figure 6-1 Industrial sites Brunei...... 20 Figure 6-2 Real GDP multi-purpose cargo volume...... 23 Figure 6-3 Real GDP TEU cargo volumes...... 23 Figure 6-4 Cargo volume Sungai Liang ...... 24 Figure 6-5 Throughput of the other 9 industrial sites...... 25 Figure 7-1 Cargo origin/destination of the 2015 situation ...... 28 Figure 7-2 SAR average wave period ...... 31 Figure 7-3 Muara port approach channel ...... 33 Figure 7-4 Sungai Liang approach channel...... 34 Figure 7-5 Kuala Belait approach channel ...... 34 Figure 8-1 Routing container transport ...... 38 Figure 8-2 Selected terminal locations...... 38 Figure 8-3 Routing cargo flows of alternative 1 ...... 39 Figure 8-4 Routing cargo flows of alternative 2 ...... 40 Figure 8-5 Routing cargo flows of alternative 3 ...... 41 Figure 8-6 Routing cargo flows of alternative 4 ...... 42 Figure 8-7 Routing cargo flows of alternative 5 ...... 42 Figure 9-1 Container terminal area growth ...... 49 Figure 9-2 Multi-purpose terminal area growth ...... 50 Figure 10-1 Muara port land use ...... 55 Figure 10-2 Layout 1; Maximum use of the existing waterfront ...... 57 Figure 10-3 Layout 2; Maximum use of the total waterfront...... 58 Figure 10-4 Layout 3; Minimum Pulau Muara Besar development...... 59 Figure 10-5 Layout 4; Maximum Pulau Muara Besar development ...... 60 Figure 11-1 Muara port spatial growth alternatives ...... 66 Figure 11-2 Alternative port development paths...... 67 Figure 11-3 Development path Muara port...... 68 Figure 11-4 Muara access road capacity ...... 72
BRUNEI MARITIME MASTERPLAN - ix - Table of contents
Figure 11-5 Noise contour present situation ...... 74 Figure 11-6 Noise contour alternative 1...... 74 Figure 11-7 Noise contour alternative 3...... 74 Figure 11-8 Schematic outline of the expansion in time...... 76
BRUNEI MARITIME MASTERPLAN - x - Introduction
1 Introduction Southeast Asia has become in the last decades the largest economic growth region of the world. Its manufacturing products are distributed over the region and the world. Historically maritime transport has been the main method for trading products, due to the lack of sufficient land infrastructure. This resulted in a specialised trading pattern in which smaller ships (so called feeders) use the many shallow ports along the coastline. Ports have become increasingly important as the cargo handling transfer nodes in the sophisticated logistic chain of manufactured goods. Specialisation and upgrading of port infrastructure is therefore a main focus in the whole region.
Brunei1 is located on the island of Borneo and is surrounded on the land side by Malaysia and on the water side by the Brunei Bay and South China Sea (180 km coastline), see Figure 1-2 (More about Brunei history can be found in appendix A.). The country (with a gross surface area of 5,770 sq kilometres and 358,000 inhabitants in 2000) has an economy based mainly on oil and gas revenues (90% of its export earnings). Per capita Gross Domestic Product (GDP) was 11,059 US dollars in 2002. Over the past 10 years the Brunei GDP growth varied between 4 % in 1997 and – 4% in 1998, averaging 2 %. The land surface developed in the tertiary age and consist mainly of sandstones and clay. The terrain in the western part is hilly lowland, which rises in the hinterland to about three hundred metres and swampy plains and alluvial valleys dominate the Brunei-Muara, Tutong and Belait districts.
Borneo lies central in the region (in the middle of the main region economies Thailand, Malaysia, Indonesia, Vietnam and the Philippines Figure1-1) and the close proximity of the main shipping route between Singapore, Hong Kong and Japan (which is used for the trade to the intra-Asian2 cargo and international shipment) could provide Brunei with an additional competitive advantage.
Figure1-1 Southeast Asia Figure 1-2 Brunei map Of the four regional districts of Brunei (from the south to north: Belait, Tutong, Brunei – Muara and Temburong , which is separated by the Malaysian province of Sarawak from Brunei), the Brunei- Muara district is the financial and governmental centre. Its capital Bandar Seri Begawan, located at the mouth of the Brunei River, is connected with ferry connections to the Temburong district and the surrounding coastal villages of Sarawak and is connected by roads to all the other districts of Brunei. Other urban concentrations can be found in the northwest and west of Brunei alongside the main Brunei coastal highway, running from the north from Muara, via Tutong to Kuala Belait in the far south.
1 Brunei Darussalam is the official name 2 This is the trade between the Asian countries themselves.
BRUNEI MARITIME MASTERPLAN 1 Scope of Research
2 Scope of Research Presently the reliance of the Brunei economy on the oil and gas revenues makes the economy vulnerable, especially with the prospect that the oil and gas reserves are limited. (It is currently estimated that oil and gas reserves will last till 2020 and 2030 respectively). Therefore the oil and gas revenues are likely to decline in the future. With the aim of creating a more balanced economy the Brunei Government has developed since its independence in 1974 five year National Development Plans (NDP’s).
Currently the 7th NDP (2000 – 2005) is being implemented and more emphasis is put on attracting export-oriented manufacturing and service activity. The government has selected 10 industrial areas (722 ha) in Brunei for industrial development. For the Sungai Liang coastal industrial site (see Figure 1-2), plans are to develop large scale heavy industrial activity3 such as an Alumina Smelter and Tire Recycling Plant. On the other 9 industrial sites (High- tech) manufacturing and services industries are to be developed. These developments will increase the cargo flows like multi-purpose cargo, containers and dry bulk.
The implications of these projects and the general economic growth on the Brunei maritime infrastructure will pose challenges to port planning. A study investigating the possible future maritime (e.g. new facilities at Sungai Liang, changes to Muara port) and land infrastructure alternatives could increase the understanding of the choices available and contribute to the discussions on the future infrastructural developments of Brunei.
Of the existing ports in Brunei, Muara Port is in an excellent position to support the expansion of the export-oriented economy and to become a regional port of significance. It has a tremendous advantage over other ports along the Borneo coast because Muara port is located in a sheltered bay, close to the island of Pulau Muara Besar (Malayan: Puala Muara Besar). Development of Pulau Muara Besar is considered for terminal expansion by the Brunei Government. Industrial and logistic development has not yet been considered in the 7th NDP and is therefore left outside the scope of this study.
Halcrow Group Limited, a United Kingdom based Civil Engineering company, is involved in Brunei as a consultant for the development of a transshipment container terminal on the island of Pulau Muara Besar. It has supported this study to gain insight into the future Brunei maritime development options, with emphasis on Muara port.
2.1 Problem definition Substantial growth of the Brunei economy goes hand in hand with a review of its present maritime infrastructure. Gaining insight into the implications of an increase in the various cargo flows (dry bulk, multi-purpose and container) on the maritime (Muara Port and Sungai Liang) and land infrastructure, will be the main focus of this study.
2.2 Project goal To determine for Brunei the optimal terminal locations for the 2015 cargo flows and to develop for Muara port a phased expansion plan.
Research objectives to reach project goal: Collect relevant economic, infrastructural, hydraulic and metrological information Provide a consistent dataset as a basis for cargo flow analysis and Muara port performance. Develop a spreadsheet model for economic scenarios up to the year 2030 to predict cargo flows
3 Industries requiring large spatial demand, large throughput volumes and high energy consumption.
BRUNEI MARITIME MASTERPLAN 2 Scope of Research