The City of Tanjung Balai is known for its Teluk Nibung port, which is the second biggest in North Sumatra after Belawan in Medan. It lies strategically located by the Asahan River, about 12 kilometers from the Malacca Straits. Hence, because of its access to international sea lanes, it was declared an open port for overseas trading. Quite a few commodities such as fresh produce and fish are exported from this port to Malaysia and Singapore.

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