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New Priok Port Development The 4th BUSAN INTERNATIONAL PORT CONFERENCE 2016 COOPERATIVE DEVELOPMENT OF PORT & LOGISTICS INFRASTRUCTURE IN EMERGING MARKET ELVYN G. MASASSYA PRESIDENT DIRECTOR INDONESIA PORT CORPORATION II (IPC) IPC PROFILE EVOLUTION OF IPC TOWARDS A WORLD CLASS PORT OPERATOR IPC BRANCHES Pelindo I Pelindo IV 16 Branches 22 Branches 12 8 11 9 6 10 7 5 2 3 1 PELINDO II/ IPC 4 3 Pelindo III 20 Branches 12 IPC Branch Indonesia’s International Gateway- 1. Port of Tanjung Priok 7. Port of Pulau Baai Bengkulu Tanjung Priok Port 2. Port of Sunda Kelapa 8. Port of Teluk Bayur, Padang 3. Port of Ciwandan Banten 9. Port of Pangkal Balam 62% of Indonesia’s international 4. Port of Cirebon 10. Port of Tanjung Pandan Container 5. Port of Panjang Lampung 11. Port of Talang Duku Jambi 6. Port of Palembang 12. Port of Pontianak IPC SUBSIDIARIES IPC Subsidiaries divided by 3 part of businesses, they are: CORE BUSINESS: CARGO LOGISTIC AND PORT SUPPORTING BUSINESSES AND HANDLING SERVICES UTILITIES 7 13 1 PT MTI / IPC PT. JICT PT RSP Hospital Logistics Logistics management International 14 2 container 8 Energy supply KSO TPK Koja PT ILCS Logistics ICT PT EPI within the port 3 International & 9 15 IPC Terminal New port Education and Domestic PPI PT PMLI Petikemas developer training center container 16 4 Terminal 10 Domestic E-business solutions Petikemas Rukindo Dredging PT EDI Indonesia container nationwide 5 Focus on domestic 11 PT. Pelabuhan Equipment container and JPPI Tanjung Priok maintenance break bulk 12 6 Vessel services IKT Car/heavy eqp. PT JAI handling throughout all IPC ports INDONESIA’S LOGISTIC CHALLENGES INDONESIA ECONOMIC ACTIVITIES JAVA Source : World Bank Indonesian Economy is dominated by Java and Sumatra province. There is a big gap of economic growth between the West and the East of Indonesia. Imbalance cargo distribution has caused higher price in Eastern Indonesia than in Western part EXISTING LOGISTIC COST High Logistict Cost to Send Goods between Islands USD/TEU km 4000 From Jakarta to….. 12000 10000 3000 It is less expensive to ship box from 8000 2000 6000 Jakarta to Hamburg (11.000 km) than 4000 from Jakarta to Sorong (3.000 km) 1000 2000 Source: Quotes from domestic logistic company, 2012 Cost (USD/TEU) 0 0 Distance (Km) CURRENT CONDITION OF HINTERLAND CONNECTIVITY Traffic jam in port surrounding Long destination from Tanjung Priok port to industry zone in Cikarang, Karawang, Cikampek Poor road condition to the port Cargo distribution from the port to final destination in Indonesia is often hindered by poor land transportation due to traffic jam, long destination, or poor road condition. Furthermore, there is no added value services offered by the port such as integrated industrial zone/logistics park. POTENTIAL ECONOMIC DEVELOPMENT Some 90% of urban areas whose GDP is growing at more than 7 percent are outside Java Infrastructure Requirements GDP Development, 2010 -2030 GDP CAGR 2010 2010-2030 Population Port <5% 1.5k-2M 2M-5M 5-7% 5M-10M >7% >10M SUMATERA KALIMANTAN Industrial Area SULAWESI MALUKU PAPUA BALI AND JAVA NUSA TENGGARA SOURCE: 2010 Population Census, Indonesia’s Central Bureau of Statistics; McKinsey Global Institute analysis Road Access The average economic growth in the western region of Indonesia already slowing. Indonesia’s economic growth will grow more potential in the eastern of Indonesia POTENTIAL COMMODITIES IN INDONESIA There is a huge cargo potential in Indonesia, which is still exported in the form of raw materials Sumatera Kalimantan Sulawesi 1. Cement 1. Cement 1. Fish 2. Crude Palm Oil (CPO) 2. Crude Palm Oil (CPO) 2. Cement 3. Fish Jawa Papua 1. Cement Fish 2. Car Nusa Tenggara 3. Cotton Fish 4. Fish 5. Manufacture INDONESIA AS THE GLOBAL MARITIME AXIS The Government Priority •Reduce logistics cost •Increase certainty of supply chain •Increase job vacancy •Increase the attractiveness of investment for private •Fostering regional economic growth How to achieve •Increasing port capacity President Joko Widodo has set the ambition to turn Indonesia •Improving connectivity into a •Lowering cost of doing business Global Maritime Axis •Improving competitive position •Integrating port industry and logistics conclusion: Port Development with the large-scale integrated industrial area PORT – INDUSTRIAL LINKAGE : INTEGRATED PORT CONCEPT INTEGRATED PORT CONCEPT A Import and export cargoes loading/unloading activities Integration between port and industrial area that integrated or close to the customs B authorities can reduce the time of deliveries of goods Goods from industrial areas can be directly distributed to the next production stage or even C can be directly sent to customers outside the industrial area Relatively shorter stacking time at container yard, containers ready to be transported to the D industrial area that integrated to the port INTEGRATED PORT CONCEPT Integrated port has increasing the efficiency of world-class ports up to 33-55% Integrated port elements and services . As national/regional logistic . As the centre of pre- gateway departure/post-arrival . Providing one-stop-shop port activities related activities Port Industrial . Providing strategic location . Providing container and non Area and manages supporting containers terminal operation activities for industries facilities . Providing buffer zones as . Manages freight temporary storage forwarding services for Storage/ . Flexibility to provides Distribution distribution of the cargoes special cargoes storage e.g. Warehouse . Access for efficient cold storage cargoes distribution network . Providing efficient loading/unloading process INTEGRATED PORT GOALS WESTERN REGION EASTERN REGION Kuala TanjungTanjung PontPontianak ianak BitungBit ung SorongSorong Makassar Jakart a Makassar Jakarta SurabayaSurabaya MIDDLE REGION Sea Toll main corridor Leverage the Port the shorter distance between the port and industrial area will increase port Facilities utilization and to simplify cargo checking/customs clearance, in the end the logistics cost will be reduced Adequate Job Generate a significant job opportunity for local human resources Creation High Value-Added To attract jobs which require medium-high skills to grow and increase the Employment number of skilled workers in the area Sustainable Business & To create sustainable business & operating model and give more certainty of Operating Model logistics business in the future Pioneering Initiative Create more added value initiatives through innovation PT Pelabuhan Indonesia II 16 IMPLEMENTATION OF INTEGRATED PORT IN JAVA JAVA INTEGRATED INDUSTRIAL AND ESTATE Java Integrated Industrial and Ports Estate (JIIPE) is a project that integrates deep sea port, industrial estate and residential estate into one package. JIIPE is conveniently located in Gresik - East Java, 24 km from Surabaya the capital city of East Java, with fast growing economic and conducive investment Manyar Port IPC STRATEGIC PROJECTS: TO IMPLEMENT PORT INTEGRATED CONCEPT IPC STRATEGIC PROJECTS KIJING PORT DEVELOPMENT & SORONG PORT SEZ DEVELOPMENT & SEZ NEWPRIOK PROJECTS CIKARANG BEKASI LAUT INLAND WATERWAY PORT OF JAKARTA NEW PRIOK PORT DEVELOPMENT EASTERN ACCESS PT2 PT 1 ROAD Phase 2 (Future Development) CT 3 CT 2 Proposed Area for Logistic Hub CT 1 SOUTHERN ACCESS ROAD JTCC DESCRIPTION INFORMATION The New Priok Port Development is a project of Location : Tanjung Priok, Jakarta terminal construction to accommodate the increasing Project Value : ±Rp 12 Trillion number of international cargo traffic and to boost high Current Progress : performance and capacity at Port of Tanjung Priok. full Comercial operation for CT 1 on August 2016; Development Phase 1 (CT 2; CT 3; PT 1; PT 2) Development Period : 2012 - 2027 NEW PRIOK CONTAINER TERMINAL (NPCT) 1 INTEGRATION OF NEW PRIOK WITH THE INDUSTRIAL AREA (KBN AREA) CIKARANG BEKASI LAUT (CBL) INLAND WATERWAY DESCRIPTION . Included in the National Strategic Projects (Presidential Decree no.3 in 2016) . CBL Inland Waterways is a project development in order to optimize the potential of river basins as a backup transport of goods by river, As well as link-off the road Port of Tanjung Priok and hinterland area. It Is expected to reduce the density of the flow of goods by road to the Port of Tanjung Priok. the use of barges would be more efficient in terms of cost and exhaust emissions. INFORMATION . Location : Cikarang-Bekasi, West Java 100.0 . Total Area : 200 Ha . Capacity : 1.6 Million TEUs/year . Total Investment : ±Rp 5 Trillion 4.5 5.0 18.0 . Funding Scheme : Internal IPC, Global Bond, and Investor 70 CANAL DESIGN PORT OF JAKARTA Collaboration : Port of Jakarta Port of Jakarta is a cooperation project between PT. Pelindo II, Jakpro, and the Port of Rotterdam. Port of Jakarta is functioned as an integrated port which consist of industrial zone to support terminals in Tanjung Priok. The industrial area is indicated by the island O, P, and Q of ± 1500 ha KIJING PORT DEVELOPMENT WITH SPECIAL ECONOMIC ZONE (SEZ) Offshore Facilities Onshore Facilities DESCRIPTION . Included in the National Strategic Projects (Presidential INFORMATION Decree no.3 in 2016) . Location : West Kalimantan . Kijing port is developed as a solution to limited land in . Total Area : 1350 Ha the port of Pontianak . Total Investment : ±Rp 5,1 Trillion . Kijing port is expected to accommodate large-size ships, . Construction Plan : 2017 able to reduce logistics costs, as well as optimizing the . Operation Plan : 2020 potential export of local products Kalimantan Barat (CPO, . Funding Scheme : Internal IPC & Investors Bauxite) SORONG PORT DEVELOPMENT WITH SPECIAL ECONOMIC ZONE (SEZ) DESCRIPTION . Included in the National Strategic Projects (Presidential Decree no.3 in 2016) . The Sorong port development is one of part of project development to support “Toll Laut Program, where it can accommodate ships with size 3000-5000 TEUs . This project can foster industrial activity for the eastern Indonesian region Development Plan INFORMATION Sorong Port (Phase 1) Container Yard Office Area . Location : West Papua . Total Investment : Rp 2,4 Trillion . Construction Plan : 2017 . Operation Plan : 2020 . Funding Scheme : Internal IPC, Global Bond, & Investors .
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