RI shipping firms losing at home

RI shipping firms losing at home

JAKARTA (JP): Foreign vessels have increased their domination of the transport of export and import products as well as cargo between domestic places over the last five years, said the Director General of Sea Transportation Soentoro.

"The market share of overseas shipping companies in export- import activities in Indonesian seaports increased to 96.8 percent, with 209 million tons of cargo carried in 1994, from 96.1 percent, or 132 million tons, in 1990," Soentoro said at a seminar here yesterday.

The market share of domestic companies dropped to 3.4 percent from 3.9 percent, he said.

In his speech, read by Sea Transportation Director A.S. Supangkat, he said the 1994 market share of foreign vessels in domestic transportation also increased to 49 percent, carrying 72 million tons of cargo, from 33.5 percent, or 31 million tons, in 1990.

The share of national-flagged ships transporting goods domestically declined to 50.5 percent in 1994 from 66.5 percent in 1990.

He said that cargo shipment activities in the country increased significantly to 385 million tons in 1994 from 245 million tons in 1990.

"The problems faced by national shipping companies include the lack of modern vessels and skilled people, high operating costs and high interest rates," said Soentoro.

He expressed concern that national vessels now operate mostly as feeder liners for foreign ships.(kod)