The main problem which will be solved in this study is that concerning the Main Public Terminal (MPT) capacity : berthing, cargo handling and cargo storage capacity within the time span of development plan, up to 2005. The objective of the development plan is then defined, i.e. to provide MPT the least-cost of port operation consisting of port investment, ship operational cost in port, and cargo handling cost. Thus the relevant criterion to be used is the optimization of berth length, storage facilities and other major fixed investment. In order to find the proper solution for the above problem, the strategy of the development plan is that the less-cost potential solution should be first investigated. Thus first investigation is concerning the operational improvement measures: the longer working time and the more effective cargo handling operation. These measures are covered in the Port Improvement Action Plan being implemented at present. Only if these measures cannot solve the above problem, the expansion of existing MPT or even the construction of new terminal will be considered. The investigation of the future MPT capacity obviously necessitates the analysis of the future MPT demand: cargo flow and ship traffic. Based on the pre sent maritime policy and location and function of MPT, several assumptions were made: limited shuttle service Tanjungpriok-Palembang, continuity of present shipping Singapore-Palembang and LASH service, little diversion to new deep-sea port of Bengkulu and ferry port of Bakahuni, gradual shift from midstream operation to MPT, and medium level of containerization. IHE-Delft MSc graduation report.