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Port of Tanjung Priok 7 TRANSPORTING LIGHT TO THE NATION Indonesia Maritime Infrastructure R.J. LINO – President Director World Export Development Forum 2012 Indonesia Port Corporation II October 15, 2012 Outline Trade & Logistics in Indonesia Indonesia Port Corporation Improve the Performance of Infrastructure Services Soft Infrastructure Improvement Program Hard Infrastructure Improvement Program o Reducing Domestic Logistic Cost through Pendulum Nusantara o NewPriok Port Development o Sorong – West Pacific Hub Port Development Project Trade & Logistics in Indonesia Indonesia Today and in 2030 Source : Mc Kinsey Global Institute 4 Indonesia’s Recent Economic Growth has been Stable Overview of OECD and BRICS (%) Source : Mc Kinsey Global Institute 5 Non-commodity exports have a lower share of GDP in Indonesia than ini Malaysia or Thailand Share of GDP, 2010 (%) 1 All non-processed commodities from agriculture, mining, and oil and gas, plus refined oil and liquefied natural gas Source : Mc Kinsey Global Institute 6 The Resource Sector’s Share Of The Economy Has Fallen From 2000 to 2010 7 Indonesia lies in the heart of future world's global trade >70% of world sea container flows are Asia-related Global container flows by main trades, 2015 (M TEUs) 1. Includes NE, SE, and S. Asia 2. Includes domestic Note: Container flows based on forecasts excluding empties and transshipment but including domestic for intra-regional trade; some trades excluded for display purposes; CAGR based on 2007-2015 Source: BCG analysis, Singapore case study 8 Domestically, trade routes are vibrant and growing fast Inter-island trade has been growing with 37% CAGR in the last 5 years Fast growing, vibrant domestic trade routes Inter-island trade has increased ~5x from 638 Mn Ton in 2006 to 3,153 Mn Ton in 2011 Note: Province to province origin-destination goods flow for all means of transportation (sea, air, land), CAGR 2006-2011 Source: OD Matrix - Ministry of Transportation 2006 and 2011 9 Logistics Performance Index (LPI) Rank of Logistic Performance Index 2010 2012 2010 CUSTOMS 72 75 LPI RANK INFRASTRUCTURE 69 85 KE -75 INTERN SHIPMENTS 80 57 LOGISTICS QUALITY 92 62 2012 & COMPETENCE LPI RANK KE - 59 TRACKING & TRACING 80 8052 TIMELINES 69 42 Source : World Bank, 2012 10 Indonesia Port Corporation II PT PELABUHAN INDONESIA II / IPC Pelindo I Pelindo IV 16 Branches 22 Branches b 12 8 11 c 9 6 10 7 IPC 5 a 12 Branches 1 3 2 4 3 Pelindo III 20 Branches IPC Branches IPC New Development Project 1. Port of Tanjung Priok 7. Port of Pulau Baai, Bengkulu a. NEW PRIOK PORT 2. Port of Sunda Kelapa 8. Port of Teluk Bayur, Padang b. TANJUNG SAUH, BATAM 3. Port of Ciwandan, Banten 9. Port of Pangkal Balam TRANSHIPMENT HUB PORT 4. Port of Cirebon 10. Port of Tanjung Pandan c. SORONG WEST PASIFIC HUB PORT 5. Port of Panjang, Lampung 11. Port of Talang Duku, Jambi 6. Port of Palembang 12. Port of Pontianak 12 PT. Pelabuhan Indonesia II / IPC Wilayah Kerja SUBSIDIARY BRANCH BUSINESS UNIT 1. MAJOR 1. PT. JICT (48,9%) 1. Tanjung Priok Car 2. PT. MTI (99,17%) Tanjung Priok Terminal 3. PT. EDI (51 %) 2. CLASS I 2. Pusat pelatihan 4. TPK KOJA (52,12 %) Palembang Kepelabuhanan 5. RSP (99,43%) Panjang Pontianak Teluk Bayur 3. CLASS II Cirebon Banten Sunda Kelapa Jambi Bengkulu Pangkal Balam Tanjung Pandan 13 IPC Performance Container Traffic (Port of Tanjung Priok) Teu’s (million) 8,0 7,2 7,0 5,7 6,0 4,7 5,0 3,9 3,8 4,0 3,6 3,3 3,4 3,1 2,9 2,6 3,0 2,4 2,5 2,0 1,0 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 14 IPC Performance Container Traffic Tanjung Priok are not dependent on Singapura, Tanjung Pelepas and Port Klang 2008 2010 2011 Direct Transhipment Singapore, Tanjung Pelepas Malaysia, Port Klang Malaysia 15 Indonesia Container Traffic Forecast Indonesia Container Traffic Forecast (millionTEU) Forecast Traffic IndonesiaContainer Actual Pesimistic Ideal Optimistic Sources : Indonesia Infrastructure Inisiative 16 Indonesia CPO Traffic Forecast Sources : Indonesia Infrastructure Inisiative 17 2030 ADDITIONAL PORT CAPACITY REQUIREMENT • 9 KM OF CONTAINER QUAY IN WEST JAVA WITH OVER 120 QCC (QUAY CONTAINER CRANE) AND OVER 900 HA OF STORAGE AREA • 4 KM OF CONTAINER QUAY IN EAST JAVA WITH OVER 55 QCC AND 400 HA OF STORAGE AREA • 80 MTPA OR MORE PETROLEUM PRODUCTS BERTH WITH OVER 700 HA OF STORAGE TERMINAL ON JAVA 18 PORT SECTOR IMPROVEMENT TO IMPROVE INDONESIA’S LOGISTICAL SYSTEM TO BOOST THE NATION COMPETITIVENESS Improve the Performance of Infrastructure Services PORT INFRASTRUCTURE DEVELOPMENT SOFT INFRASTRUCTURE HARD INFRASTRUCTURE 24/7 OPERATION IMPROVEMENT EKSISTING PORT - Procurement New Handling Equipment - Port Facilities Improvement HANDLING METHOD IMPROVEMENT - Land Optimalisation and Reconfiguration INFORMATION & COMMUNICATION TECHNOLOGY IMRPOVEMENT NEW DEVELOPMENT : HUMAN RESOURCES DEVELOPMENT - New Priok Terminal - Tanjung Sauh Transhipment Hub - Sorong West Pacific Hub TERMINAL MANAGEMENT IMPROVEMENT - Pendulum Nusantara 21 Soft Infrastructure Improvement Program Handling Method Improvement Comparison of Container Loading / Unloading NO ACTIVITIES CONVENTIONAL MODERN PICTURE BOX/CRANE/HOUR (BCH) 7 BOX 20 BOX 23 Handling Method Improvement Comparison of Dry Bulk Loading / Unloading NO ACTIVITIES CONVENTIONAL MODERN PICTURE VesseL : SHIP GEAR, MOBILE CRANE LUFFING CRANE Use Box and Grab JIB CRANE, GANTRY CRANE Barge : WheLL Loader and Excavator Use Grab and Hopper Dump Truck with Excavator and WheeL Excavator and WheeL Loader at StockpiLe Loader TON/GANG/HOUR 30 - 40 Ton (VesseL) 350 Ton (TGH) 150 Ton (Barge) 24 Handling Method Improvement Comparison of Bag Cargo Loading / Unloading NO ACTIVITIES CONVENTIONAL MODERN PICTURE Use Jala-jala lambung Use Jumbo Bag with special spreader Truck Trailer / Truck STORAGE OPERATION (Warehouse) Dominant manpower TON/GANG/HOUR (TGH) 30 TON 240 TON 25 Improvement Working Method The steps to be taken a. Small bag put into container (bag cargo containerization) Small Bag Container TGH : 30 ton 25 ton x 20 cycle = 500 ton b. Jumbo bag put into container 26 Port of Tanjung Priok Port of Panjang 1 unit QCC Twin Lift 4 units Gantry Jib Crane Port of Pontianak 2 unit QCC Twin Lift 4 units RMGC 3 units Gantry Jib Crane Port of Palembang 2 unit QCC Twin Lift 4 units RMGC 4 units Gantry Jib Crane Port of Teluk Bayur 7 units Gantry Luffing Crane 3 units RTGC Port of Jambi 2 units Fixed Luffing Crane 3 units RMGC Port of Pangkal Balam 1 unit fix Jib Crane 1 unit platform fix jib crane Indonesia Logistics Community Service (ILCS) Indonesia Logistics Community Service (ILCS) Strategic Objectives Becoming a regional trade and transport hub Complying with international trade facilitation and security standards Boasting economic growth 35 Indonesia Logistics Community Service (ILCS) ILCS Framework ILCS system will run alongside INSW system in order to improve the quality of Indonesia logistics sector. Impact on connectedness in the total process / total logistic cost.... 36 Indonesia Logistics Community Service (ILCS) Basic Benefits of ILCS • Benchmark: Increase members productivity 30-60% • Simplify business processes • Reduce dwelling time Before • Improving the competitiveness of the industry • Comply standard global • Continuity of information from one port to another port • Submission of e logistics related data are complete and up to date • Security data transactions After ILCS • No time wasted • Centralized data access • Transparency 37 Human Resources Development IPC ACADEMY PORT, SHIPPING, AND LOGISTICS SCHOOL Human Resources Development - 50 39 Hard Infrastructure Improvement Program Reducing National Logistics Cost through Pendulum Nusantara Background Map of Indonesia Economic Corridor Mega Economic Center Economic Center Sumatera EC Jawa EC Kalimantan EC SuLawesi EC Bali – Nusa Tenggara EC Papua – Maluku IsLand EC Source : Coordinating Ministry for Economic Affairs 42 Background Distribution Map of Economic Growth in Indonesia Source : World Bank 43 Background However, domestic logistic cost is high and could be an impediment for growth Source: Quotes from domestic logistic company, 2012 44 Background Maximum Size Container Ship International Shipping Asia Europe Routes - 2012 Intra-Asian Routes - 2012 Intra-ASEAN/Feeder Routes - 2012 Indonesia Domestic Container Shipping 45 Background Domestic Trade Flows for Indonesia Container Traffic 46 Pendulum Nusantara Indonesia Main Sea-Corridor BELAWAN BATAM SORONG MAKASSAR JAKARTA SURABAYA PELABUHAN YANG PERLU DIKEMBANGKAN: BELAWAN, BATAM, JAKARTA, SURABAYA, MAKASSAR DAN SORONG 47 Pendulum Nusantara Development Scheme of Pendulum Nusantara’s Main and Sub Corridor Loop Aceh BELAWAN Loop Pantai Loop North Timur Loop North-East Papua Sumatera Sulawesi and North Maluku BATAM SORONG Loop Babel and West Kalimantan Loop East Loop West Loop Maluku Kalimantan Sulawesi and South-West TJ PROK Papua Loop Pantai Barat Sumatera MAKASAR SURABAYA Loop East Loop West Nusatenggara Nusatenggara Main Sea-Corridor Sumber: IPC (2012) 48 Pendulum Nusantara Domestic Container Volumes 2010 Belawan Batam Sorong Tanjung Priok Makassar Tanjung Perak 49 Pendulum Nusantara Domestic Container Volumes 2015 Belawan Batam Sorong Tanjung Priok Makassar Tanjung Perak 50 Pendulum Nusantara Domestic Container Volumes 2020 Belawan Batam Sorong Tanjung Priok Makassar Tanjung Perak 51 Pendulum Service Average shipping costs JAKARTA Prior to the With the (TANJUNG PRIOK) TO PenduLum Service PenduLum Service SINGAPORE US $ 250 US $ 250 BELAWAN US $ 400 US $ 275 SURABAYA US $ 350 US $ 125 SORONG US $ 2000 US $ 375
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