Minister defends private operators at T. Priok port
JAKARTA (JP): Despite complaints from port users, Minister of Transportation Haryanto Dhanutirto insisted yesterday that privately-owned terminal operators were necessary to ensure a smooth flow of cargo at the city's Tanjung Priok port.
"Because terminal operators consist mostly of small and medium-scale companies, we must give them a chance to improve. I could easily ask a big conglomerate to take over the job, but would we really want that?" he asked during a meeting yesterday between port officials and port users.
Haryanto said that to improve services at the port terminal operators, rather than being dissolved, should be "guided and given supervision and, if necessary, given the equipment they need".
Yesterday's meeting was attended by executives of the state- owned PT Pelabuhan Indonesia II, which oversees operations at the port, and officials of the port administration, which oversees document-clearing procedures and overall port activities.
The port users were represented by executives of the Indonesian National Shipowners' Association, the Indonesian Importers' Association, the Federation of Indonesian Exporters, the Association of Indonesian Stevedores, the Organization of Land Transportation Operators and the Association of Indonesian Freight Forwarding and Expedition Companies.
The meeting was held to discuss the problems currently faced at the port, caused by what its users see as red tape and poor facilities, which have led to serious port congestion, delays in cargo handling and prolonged docking time for ships.
Members of the House of Representatives had earlier asked the government to dissolve the "unprofessional" terminal operators.
Warning
Although the minister defended terminal operators, which were established two years ago and considered an effective means of boosting the port's productivity, he warned of terminal operators which merely functioned as brokers.
"I have heard that there are terminal operators which sit around to collect commissions while they assign stevedoring companies to do their jobs. That kind of terminal operator must be kicked out," he said.
According to the Bisnis Indonesia daily, owners of the terminal operator companies include shipping tycoon Soedarpo Sastrosatomo, businessman Prajogo Pangestu and timber tycoon Mohammad Hasan.
A. Harbani, the president of Pelabuhan II, lashed out yesterday at port users, insisting that about 60 percent of the time spent, or wasted, at the port was not caused by the procedures overseen by the company but by the negligence of shipping companies in completing required documents and in seeking agents.
Harbani's contention was immediately dismissed by Barens Saragih, secretary-general of the Indonesian National Shipowners' Association, who said that all ships, especially foreign container vessels, have linked up with agents and completed documents well before they arrived.
"Don't use that as an excuse for the port congestion, which is caused by inefficiency on the part of the port authorities," he said.
Harbani presented a long list of provisions to each of the associations, asking them to support Pelabuhan II's efforts.
Pelabuhan II announced recently that it was constructing additional infrastructure and cutting back red tape at the port.
The Asia North America Eastbound Rate Agreement (ANERA) group of shipping lines announced yesterday a "Jakarta Port Congestion Surcharge" which requires ship users to pay US$100 for containers measuring 20 feet and $200 for those of 40 feet and above.
ANERA consists of the American President Line, Ltd., Hapag- Lloyd A.G., Kawasaki Kisen Kaisha (K-Line), Ltd., A.P. Moller- Maersk Line, Mitsui O.S.K. Lines, Ltd., Nedlloyd Linjen B.V., Neptune Orient Lines, Ltd., Nippon Yusen Kaisha (N.Y.K.), Orient Overseas Container Line, Inc., and Sea-Land Service, Inc.
The surcharge, which is to become effective from July 15, will be imposed on all shipments from Jakarta to the United States, Puerto Rico and Canada.
Tanjung Priok port currently serves 70 percent of the country's import and export activities.
Over the last five years, the number of conventional and container vessels using the port has increased by an average of six percent per annum. Last year the figure stood at 12,733 units.
Cargo handling has also increased by 12 percent over the same period, with 26.8 million tons recorded last year. (pwn)