Many substandard ships still operating

JAKARTA (JP): Director General of Sea Transportation Soentoro said yesterday that almost one third of the ships serving 34 pioneering routes in remote areas are below par.

"I'm always cheated by those irresponsible people. Their ships are already dilapidated, but they do not want to replace them. The ones who suffer most from their ignorance are those living on isolated islands," Soentoro told reporters here.

He noted that the government has provided subsidies of up to Rp 24 billion (US$11 million) for their operations this fiscal year. The subsidies are given to the shipping companies based on their daily operations.

Of the 34 routes, which cover 263 small seaports, 17 are served by state-owned shipping company PT Pelni, while the others are assigned to private shipping operators based on annual tenders.

Soentoro noted that those companies which operate decaying ships are all private firms. "They only want to absorb the government's subsidies, but do not want to rejuvenate their fleets."

He acknowledged that the one-year licenses given to the private shipping operators may not allow them enough time to renew their fleets.

"I'm considering introducing long-term contracts for pioneering shipping so that the investors will have more certainty about investing their money in new ships," Soentoro said at the opening of a PT Pelni meeting.

Soentoro said that he also plans to cooperate with local shipbuilders to construct special ships to serve pioneering routes.

"Pioneering ships should be flexible. They have to provide proper accommodations for passengers, they have to accommodate cargoes and, most importantly, they have to be able to anchor at any island," Soentoro said.

He explained that since pioneering routes were opened 20 years ago, a number of pioneering seaports have been made into commercial ports. (rid)