Breakthrough needed in port development: INSA
The Jakarta Post Jakarta
Angered by what it sees as inefficiency at international ports throughout the country, the Indonesian National Shipowners Association (INSA) has called for massive improvements in the management of ports.
"Inefficiency at ports has caused direct annual losses of more than US$20 million to the shipping industry," INSA chairman Oentoro Surya said on Monday.
Oentoro said inefficiency at Tanjung Priok Port in North Jakarta caused an average two-day wait for ships to dock at the port. This results in higher waiting fees for the shipping industry.
According to the port's website, the current hourly waiting fee ranges between Rp 120,000 (US$12.80) and Rp 1 million for domestic ships and between $145 and $1,700 for foreign ships.
Oentoro said because Tanjung Priok Port, the country's largest international port, was so poorly managed, there was a need to develop new ports to increase the country's international competitiveness.
"Rehabilitating the old port would be difficult because there is a lack of access and the surrounding area is occupied by residents," he said.
Tanjung Priok Port -- occupying 604 hectares of land and 424 hectares of breakwater area -- has three container terminals and is operating at only half its capacity.
"The port also serves a range of activities, from passengers to goods," Oentoro said.
According to a 2003 study by the Institute for Management at the University of Indonesia's School of Economics (LM-FEUI), the annual capacity of Tanjung Priok Port is 1.1 million TEU (20 foot equivalent unit) while the forecast demand in 2012 is about four million TEU.
In line with suggestions from the INSA, the Jakarta administration and the LM-FEUI will host an international workshop on March 21 and March 22 to find suitable models for the development of new ports.
There have been media reports that the city administration plans to build the Jakarta New Port to support export and import activities.
The focus of the plan -- based on a study by the Japanese International Cooperation Agency -- is to develop a special car terminal needed by many Japanese car manufacturers exporting their products to the ASEAN region, LM-FEUI director of research and consulting Toto Pranoto said.
"The results of the workshop will provide suggestions for the city administration to decide how best to develop the new port," he said, adding that the whole project would cost about Rp 8.1 trillion.
The project, which would be located on reclaimed land in East Ancol, North Jakarta, has been opposed by state port operator Pelindo II, which says it plans to construct an integrated port in the same area.
The Constitutional Court is currently reviewing the legal basis used by each side in the dispute to support its claim to the land and the right to build a port.
Besides this legal dispute, the project has also faced strong opposition from environmentalists who have warned that it would worsen flooding in coastal areas, as well as have an adverse impact on the ecosystem of the north coast of Jakarta and Jakarta Bay. (003)