Significant improvements seen at Priok port

Significant improvements seen at Priok port

JAKARTA (JP): Minister of Transportation Haryanto Dhanutirto
says that significant improvements have been made at Jakarta's
Tanjung Priok port as a result of the port management's "crash"
program, which began in June.

Shipping line owners, however, say that PT Pelabuhan Indonesia
II, the state-owned company managing Tanjung Priok, can still do
a lot to bring the port's services and facilities up to higher
standards so that they won't have to impose congestion surcharges
on port users.

Haryanto, after meeting with President Soeharto at the Merdeka
Palace yesterday, told reporters that the prolonged waiting time
of incoming ships, which caused major complaints among shipping
lines earlier this year, has been "significantly reduced".

"The percentage of ships coming in at zero waiting time has
increased and that of those with a long waiting time has
decreased," he said.

Container vessels which berthed at Tanjung Priok at zero
waiting time accounted for only 12 percent in May, he said,
whereas by Aug. 24 the figure had increased to 44 percent.

Cargo-handling at Tanjung Priok's conventional port has
improved markedly, Haryanto said. In May, for instance, the
average production level recorded at the conventional port was
35,906 tons per day. He said that the level had increased to
52,969 tons per day by August.

At the container port, however, the performance of cargo-
handling services still fluctuated due to inadequate container
crane facilities, he added.

"But, judging from the average productivity, which increased
from 2,495 boxes per day in May to 2,699 in August, this is a
significant improvement," he said.

The management of Tanjung Priok came under fire earlier this
year after its users complained of inefficiencies at the port
leading to prolonged waiting times for ships.

Surcharge

Shipping lines threatened to impose a "Jakarta Port Congestion
Surcharge" to compensate them for the losses caused through the
inefficiency. They subsequently decided to postpone the
introduction of the surcharge, opting to "wait and see" what the
results of the crash program promised by Pelabuhan II would be.

T. Tadano, local chairman of the Intra Asia Discussion
Agreement (IADA) forum, which consists of 44 shipping lines from
the Asia-Pacific region, described improvements at the port as
"not significant."

Following a meeting between Pelabuhan II and a number of
foreign shipping conferences on Aug. 16, he said, shipping
companies asked Pelabuhan II to continue making improvements.

IADA, together with the Asia North America Eastbound Rate
Agreement (ANERA) group of shipping lines, recently announced a
postponement of port congestion surcharges, which they had
initially planned to start on Sept. 1.

ANERA decided to hold back until Oct. 1 and IADA until Nov. 1.

Tadano said that shipping companies also requested Pelabuhan
II maintain "window contracts," which are revised on a yearly
basis.

The contracts, he said, ensure shipping lines a predesignated
space, day and time on which to berth regularly at the port,
based on a long-term schedule submitted beforehand by the
shipping companies.

"Presently, however, a shipping company holding a window
contract is often delayed because it's space has been occupied by
vessels of other companies. Pelabuhan II must make clear
priorities for such contract holders," he told The Jakarta Post.

He added that, under present conditions, it is also impossible
for new window contracts to be added, because of inadequate
space.

"If we are delayed at one port, this will disrupt our
schedules -- and window contracts -- at all other ports," he
said.

According to Tadano, port congestion surcharges are currently
imposed by most shipping lines on four African ports in Lobito,
Rwanda, Namibe and Santos; six in Europe and Northern Africa,
including Algeria, Istanbul and Tripoli; three in the Gulf,
including Hodeidah port; and three in China, including Dalian.
(pwn)