State port operator Pelindo II, also known as Indonesia Port Corporation (IPC), will develop Tanjung Sauh port, Batam Island, in collaboration with its partner, the China Merchants Group, by end-2013. Estimated to cost about Rp 5 trillion, the construction work will be carried out in phases. Reportedly, the two companies may also operate the new facility once it is built. The first phase of the project involves the construction of the port with a handling capacity of 4 million twenty-foot equivalent units (TEUs). In the later phases, the handling capacity will be expanded to 15–20 million TEUs. The port is expected to be completed by end-2015. Meanwhile, Pelindo I plans to transform Kuala Tanjung port at Medan, North Sumatra, into a major port.