Minister defends private operators at T. Priok port

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)