Port development needs breakthrough: INSA

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)