Port development needs breakthrough: INSA
The Jakarta Post, Jakarta
Angered by what it sees as inefficiency at international ports throughout the country, the Indonesian National Shipowners Association (INSA) has called for massive improvements in the management of ports.
"Inefficiency at ports has caused direct annual losses of more than US$20 million to the shipping industry," INSA chairman Oentoro Surya said on Monday.
He said inefficiency at Tanjung Priok Port in North Jakarta caused an average two-day wait for ships to dock at the port. This results in higher waiting fees for the shipping industry.
The port website says the current hourly waiting fee ranges between Rp 120,000 (US$12.80) and Rp 1 million for domestic ships and between $145 and $1,700 for foreign ships.
Oentoro said because Tanjung Priok Port, the country's largest international port, was so poorly managed, there was a need to develop new ports to increase the country's international competitiveness.
"Rehabilitating the old port would be difficult because there is a lack of access and the surrounding area is occupied by residents," he said.
Tanjung Priok Port -- occupying 604 hectares of land and 424 hectares of breakwater area -- has three container terminals and is operating at only half its capacity.
According to a 2003 study by the Institute for Management at the University of Indonesia's School of Economics (LM-FEUI), the annual capacity of Tanjung Priok Port is 1.1 million TEU (20 foot equivalent unit) while the forecast demand in 2012 is about four million TEU.
In line with suggestions from the INSA, the Jakarta administration and the LM-FEUI will host an international workshop on March 21 and March 22 to find suitable models for the development of new ports.
Media have reported that the city administration plans to build the Jakarta New Port to support export and import activities.
The focus of the Rp 8.1 trillion plan -- based on a study by the Japanese International Cooperation Agency -- is to develop a special car terminal needed by many Japanese car manufacturers exporting their products to the ASEAN region, LM-FEUI director of research and consulting Toto Pranoto said.
The project, which would be located on reclaimed land in East Ancol, North Jakarta, has been opposed by state port operator Pelindo II, which says it plans to construct an integrated port in the same area. (003)