Mon, 03 Feb 1997

Foreign ships warned

JAKARTA (JP): Director General of Sea Transportation Soentoro has said he will take legal action against foreign shipping companies and their agents which transport cargo or pick up empty containers at undesignated domestic ports.

Soentoro said he would not hesitate to revoke the shipping permits of domestic firms which acted as the agents of foreign vessels, if they violated this ruling.

Under government regulations, foreign vessels are not allowed to transport cargo or empty containers between domestic ports where they are only scheduled to unload or berth.

"The rules may seem very strict, but actually it is quite common because most international shipping rules apply this principle of cabotage," Soentoro said, reported Bisnis Indonesia.

He said that by complying with the regulations, cargo and empty container traffic would flow smoothly.

He expected this would also help to increase the amount of domestic cargo transported by Indonesian fleets to about 70 percent in the next two years.

Currently, about 84.3 million tons, or 54.5 percent of domestic cargo is carried by Indonesian vessels and the remaining 70.3 million tons, or 45.5 percent, is transported by foreign vessels.

"I have asked provincial and local staffer of the ministry and those working at ports to keep a close watch on the activities of foreign ships," he said. (pwn)