Seaport efficiency<\/p>\n
Minister of Transportation Haryanto Dhanutirto's plan to stop
\nthe ship-side trucking service for imports through the Jakarta
\nseaport of Tanjung Priok has raised a fundamental question about
\nthe basic function of physical infrastructure. Dhanutirto
\nreaffirmed Monday he would gradually stop freighter-side trucking
\nservices to increase the port's revenue from its warehouses. This
\nmeans imports, which can now be unloaded directly to waiting
\ntrucks for immediate hauling to shippers, are to be held up at
\nport warehouses for a few days simply to raise the utilization
\nrate of transit sheds.<\/p>\n
Judging from macro-economic efficiency, the plan is not wise
\nas it is bound to increase the costs of importing. Since about 70
\npercent of Indonesian imports consist of industrial raw materials
\nand 22 percent of capital goods with the remaining 8 percent
\ntaken up by consumer items, Dhanutirto's intention will adversely
\naffect manufacturing costs and the implementation of investment
\nprojects.<\/p>\n
It is no surprise that the Indonesian Importers Association
\nhave strongly opposed the plan, saying it is entirely irrational.
\nAfter all, a seaport is a basic infrastructure for the economy.
\nIt functions mainly as a transit point for imports, exports and
\nmerchandise between the islands. A port functions well when it
\nfacilitates the flow of goods and passengers as fast as possible
\nat the least cost. True, a port should make income to finance its
\noperations and investment but this should not be made at the
\nexpense of macro-economic efficiency.<\/p>\n
Seaports, like airports, roads, electricity and
\ntelecommunications, are basic infrastructure which facilitate
\neconomic activities. It would be an anomaly if, for example,
\nTanjung Priok port posted a high profit while most users of the
\nport service complained about high costs. The ultimate end is not
\na highly profitable seaport but an efficient and competitive
\neconomy.<\/p>\n
An efficient port is one of the primary factors considered by
\ninvestors in locating their projects and an efficient port is not
\none which makes a lot of profits but guarantees a smooth flow of
\ngoods. Ports all over the world have been competing to attract
\nmore trade because the larger the volume and the value of trade
\nit can attract the lower the tariffs it can charge on its
\nservices.<\/p>\n
It is true, as Dhanutirto argued, that problems could arise if
\nthe number of trucks available was not adequate to take in all
\nthe freight being unloaded from a ship and this could prolong the
\nunloading process and could exact demurrage costs on the
\nfreighter. However, such problems are not a strong enough reason
\nto justify a blanket ban on the ship-side trucking service.<\/p>\n
The port management should continue giving importers an option
\neither to use the transit sheds or transport their imports
\ndirectly to their own warehouses through freighter-side trucking
\nservices. The port management needs to ensure that shippers make
\nall the preparations necessary to guarantee the smooth unloading
\nfrom ships and immediate hauling out of the port area and if they
\nare not fully prepared they should be ordered to move their cargo
\nto the port warehouses. The timing of ship-side trucking service
\nshould also consider the problem of traffic congestion in
\nJakarta. With modern communications such as electronic data
\ninterface both shippers and port management can be fully informed
\nin advance of the kinds of cargo to be unloaded, the handling
\nequipment and number of trucks needed by the incoming freighter.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/seaport-efficiency-1447893297",
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"sponsor": "Okusi Associates",
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