Many substandard ships still operating

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)