April 2009, Govt. Regulation on Ports & Shipping Issued

The Government Regulation (PP), which functions as the implementation of the Law No. 17 Year 2008 on Shipping Affairs, is targeted to have a full draft from the Composing Team by next April 2009.

“We are now still composing the PP. The target to complete it is in April 2009, and then it will be socialized to all parties,” Harjogi, the Secretary-General for the Ministry of Transportation Affairs told the Ocean Week accompanied by the Chief Bureau of Legal Affairs of the Seat Transportation Directorate, Umar Aries, after the ceremony of donation to 491 families of stevedoring labors in Tanjung Priok Port recently.

With the completion of the PP, Harjogi said, it would be able to answer all parties, who so far were waiting for the clearance. Unfortunately, Harjogi refused to tell some of the content of the PP, especially the PP on ports and shipping business.

However, Harjogi promised that the PP might be able to accommodate all need of the stakeholders in the port and shipping business.

Meanwhile, businesspeople at stevedoring service as well as shipping lines are now still waiting for the issuance of the PP.

“It’s difficult for us to take business decision, because we haven’t known exactly what the content of the PP will be,” Hyrman Soemadiredja (Chairman of Maritime Care Society – MPM), the President Director of PT Hamparan Jala Segara told the Ocean Week in his office recently.

Numbers of shipping players also stated similar opinions with Hyrman. “Although we may gain more benefit (from it), especially after the ratification of Law No. 17/2008, we are still waiting for the issuance of the PP,” Yahya Zubir, the President Director of Spectra Line said.

A trustable source of the Ocean Week, who refused to mention name, said the Team for PP Drafting currently is working hard to finish it. “It may not be ready by the end of this year, but we’re trying to finish it by 2009, he said.

When answering about the opportunity given to national liners through various of government regulations, Harijogi disclosed that the chance must be really taken maximally by national merchant fleet to develop their business at least just like what they have got in the 1970s period.

Cargo Throughput at Conventional Terminal Hits 32M Tons

Cargo inbound and outbound via the conventional terminal of Tanjung Priok Port in the first quarter of 2008 had reached 32,488,170 ton, which consisted of 4,151,482 tons of exports and 9,393,762 tons of imports. Meanwhile, for the unloading of inter-islands trade was 13,160,646 tons and loading was 5,782,280 tons. If compared with the same period of last year (2007) which recorded 31,787,557 tons, there was a 2.20% hike that equaled to 700,613 tons.

However, for the international trade, Hambar Wahyudi, the Spokesman of PT Pelindo II of Tanjung Priok said, the flow of exported goods was down to 26.9% or 1,529,879 tons. In the first quarter of 2008, it was 4,151,482 tons, whereas last year (2007), it hit 5,681,361 tons. The declining of the exported goods was at the same time with the falling of some exported products, such as cement and clinker.

Meanwhile, total imported goods were 9,393,762 tons. If compared with the same period last year which was 9,235,093 tons, there was 1.72% hike or around 158,669 tons. It all caused by the decline of some imported commodities, such as sugar, rice, wheat, corn, soybean, cattle food and chemical stuff. Even until the first quarter of 2008, there were ships with strategic commodities dominating the port, such as the CPO ships which averagely were 70 units per month in Tanjung Priok, and the ships with cattle which reached 6-7 units per month. Unit the first quarter of 2008, total imported cattle from Australia reached 197,953 cows.

In the inter-island trade, the unloaded goods increased to 11.34% or 1,340,614 tons. In the first quarter of 2008, total unloaded goods were 13,160,646 tons, whereas last year, it was 11,820,032 tons.. The increase of unloaded goods was suitable to the increase of the demands of inter-island trade, such as rice, CPO, steel plate, heavy equipment, used irons and some mining commodities like coal and sand.

Meanwhile, total loading of inter-island goods via Tanjung Priok port were 5,782,280 tons. If compared with last year’s period which was 5,051,071 tons, it meant there was an increase to 14.48% or 731,209 tons. The most dominant commodities for loading cargo were cement bag, general cargo, clinker and inter-island containers.

Furthermore, the container throughput via general berth of Tanjung Priok Port at the same period was 940,958 TEUs or 786,389 boxes. If compared with the same period last year, which reached 930,159 TEUs or 782,926 boxes, there was an increase by 10,799 TEUs or 0.14% in TEUs term, and 3,463 boxes or 0.14% in the box term.

In the mean time, the ship calls at the conventional terminal were recorded 13,923 ships or 70,175,120 GT (Gross Tonnage). It consisted of 4,122 ocean-going ships or around 47,448,775 GT, 9,529 domestic ships or 22,305,279 GT and the state/guest/other ships were 272 with 421,066 GT. If compared with last year’s data which was 13,461 ships or 67,486,213 GT, there was an increase by 3.43%, or 462 in the ship’s unit, and 3.98% or 2,688,907 GT.

The sharp increase indeed happened at the flow of domestic ships, which reached 13.97% or 1,168 units, if compared with last year period, which recorded 8,361 units or 20,646,780 GT.

However, for ocean-going ships, there was a decline by 6.97% or 309 ship, from 4,431 ships last year to only 4,122 this year.. If compared in GT term, there was an increase by 2.01% or 936,221 GT, since last year it was 46,512,554 GT, whereas this year it hit 47,448,775 GT. (OW)

TPS Surabaya Reaches 1 Million TEUs

Starting December 1, 2008, the international Container Handling Charge (CHC) tariff at TPS Surabaya will be officially hike. The hike would be around 14% from the current CHC tariff.

“On last October 30, the company officially had issued the tariff adjustment announcement to the port users,” Wara Djatmika, the Corporate Public Relation of PT TPS Surabaya told the Ocean Week recently.

According to him, the handling tariff for 20-feet container would be up from US$70 to be US$80, whereas the 40-feet container from US$105 to US$120.

The agreement on the validation date to apply the new tariff had been decided together with GINSI of East Java, GPEI, INSA Surabaya, GAFEKSI of East Java and APBMI on last October 28.

Wara also stated that until the third week of October, TPS throughput had surpassed 1 million TEUs. He was optimistic that the target of 1,180,000 TEUs would be achieved this year.

“In fact, until last August, the target of production was possible to hit 1,200,000 TEUs. But because of the global economic crisis that happened in the last 2 (two) months, it made the production was only 1 million TEUs by last September,” Wara said.

He said that the succeed to achieve the production target at TPS Surabaya was among other supported by the calls of MSC AURELIE ship that had tonnage to 39,766 tons.

“The call of MSC AURELIE on last October 30-31, with total LOA 250.54 meters made it to be the biggest ship ever called at TPS. The stevedoring activity of the ship in TPS was 3,383 TEUs, detailing 1,087 TEUs of unloading and 2,296 TEUs of loading,” Wara said.

Pelindo III Otimistic to Earn Profit to 512 Billion

PT Pelindo III is optimistic that it will be able to earn net profit of between Rp 500 billion to Rp 512 billion this year. It is based on the level of growth and the enhancement of services in the company and its
subsidiaries.

It was stated by the Managing Director of PT Pelindo III, Suprihat during the ceremony to transfer the position of the Vice President of PT Portek (the subsidiary of PT Pelindo III) from M zaini to Adi Hardono at Grand Mirama Hotel on October 30, 2008 ago.

Suprihat explained that based on the report, total ship calls this year have reached 75,000 units with tonnage of 200 million DWT. The figure mostly came from the ports in the eastern Indonesia region, which were still under the management of PT Pelindo
III.

Other contribution was from the increase of container throughput, which totaled 2.9 million TEUs. The development was quite exciting and he expected that all subsidiaries could grow bigger again in the future. Business sectors that contributed to the container throughput were PT TPS with 1.2 million TEUs, BJTI 900,000 TEUS, TPKS Semarang with 475,000 TEUs and several other branches ports, including PT Portek and PHC hospital.

PT Portek is a subsidiary of Pelindo III. It controls 51% stake in the company with the remaining 49% belongs to Portek
Singapore . PT Portek Indonesia has been trusted so far to conduct maintenance works at numbers of stevedoring equipment in several ports. Port operator that have used Portek Indonesia’s service are among others PT TPS, PT GJTI, TPKS, Medan Port, PT Mustika Alam and some other firms.

According to Iwan Sabatini, the Head of Public Relation of Pelindo III, the effort of grabbing higher profit is the obsession of the management, in which it must be followed by a continuous enhancement in port service that are reflected at the development of some facilities in Pelindo III. One of the project that is under construction is the development of “Nilam Multipurpose
Terminal”, with infrastructure cost of Rp 105 billion and suprastructure cost of Rp 184 billion. The terminal is expected to start the operation by April 2009.

After this project, Pelindo III will develop Jamrud Multipurpose Terminal, which then will be followed by the Lamong Bay development where the first phase of the project to develop 200 meters berth and its road access are expected to start in 2009.

At almost the same time, PT Pelindo III also succeeded to win the Awards of the Best Image of Public Service
Provider in the port service sector from President Susilo Bambang Yudhoyono. Two units under Pelindo III, TPKS Semarang and Benoa Port succeeded to win the award. The most special thing from it is Pelindo III became the only one port that can win it directly at two working units.

“Therefore, on behalf of the management, we’d like to express our thankfulness over the trust from the stakeholders and the public, and it would be a trigger of motivation for us to enhance our level of service at all Pelindo III units,” he said.

JICT Tightens the Overbrengen

The operator of Jakarta International Container Terminal tightens the act of overbrengen or removing of imported containers from the container yard in this terminal.

“The tightening action is taken based on the calculation of the Yard Occupancy Ratio (YOR) and total ship calls everyday and served in JICT. Even if it is holiday and the YOR is high, but if the delivery is also high and the stevedoring activities tend to be lower, overbrengen will not be done,” Agus Barlianto, the Public Relation Manager of PT JICT told media recently in response to the complaints of some shippers over the limitation of the removal of container piling location (overbrengen) to the Temporary Container Yard (TPS) in Tanjung Priok since mid October 2008.

Barlianto also stated that according to the rules of the Customs Office, the act of removing containers could be taken at the time YOR reached 85% or more. However, the high YOR standard is not the only way of doing overbrengen, but also depends on ship calls condition and the smoothness of delivery.

“It’s not true if JICT was no longer doing overbrengen in post Iedl Fitri days in the early October ago,” he said.

The source of Ocean Week confirmed that there was tightening to the overbrengen activity from JICT to several TPS. But the policy actually should be responded wisely, why such things must be done after the iedl Fitri days. “Whether it was the impact of global crisis that resulted lower container throughput in JICT, or other thing, they must be responded wisely,” he said.

As a TPS provider, he fully realized the current difficult situation and condition. Nevertheless, he expected that everyone should remain optimistic that the business community would be able to survive from this condition.

He hoped that all parties not accusing, pressing or blaming one to another. “But, let’s find the solution to overcome the problems, which appears due to this global crisis,” the source said.

JICT Optimistic to Break 2 Million TEUs

The impact of global financial crisis in the United States has not been felt yet in the activities at Jakarta International Container Terminal (JICT). The terminal operator currently even prepares the anticipation to face the skyrocketing of cargo throughput by the end of 2008.

Wisnu Pranoto, Commercial Director of JICT told Ocean Week recently that the company currently concentrates on its performance.. It included preparing the anticipation if there would be skyrocketing of container throughput in November and December 2008 via JICT.

“The third wee of October 2008 (after the Iedl Fitri days), the activities in JICT start to be normal and container throughput has begun to increase. YOR now is still normal, around 60%,” he said.

According to him, who is also ex-General Manager of Pontianak Port , in two weeks after Iedl Fitri, the activity via this terminal was a bit down, because the containers that should be shipped to Jakarta were still held in Port Kalng as well as in other ports.

As an effort to anticipate the high increase at the end of 2008, he has prepared several things, such as preparing more container yard spaces.

Wisnu was optimistic that the target of production that was 1.980 million TEUs this year via JICT was possibly to be realized. He expected that it could break 2 million TEUs. When answering the question about the implementation of CHC tariff hike in Tanjung Priok from US$70 to US$83 per September 1, which then delayed to October 1, Wisnu clearly stated there’s no delaying anymore for the implementation of CHC hike. But within the one-month transition period, JICT would provide discount. “However, per October 1, 2008, the new CHC tariff is fully applied,” he said.

In the near future, Wisnu Pranoto said, JICT management would add more facilities to anticipate the growth of container throughput. Starting next year (2009) more heavy equipment would come, such as 4 more Container Cranes (CC), 18 RTGs, and 100 Head Trucks. Then, in 2011, there would be more 12.4 hectares container yard. In 2008, the expansion works has reached 3 hectares. Then, there would be also new gates in 2011, gate in from 12 to be 24, and gate out would be 12. So, total there would be 36 gates.

“It’s expected that by adding more facilities, after 2011, JICT will be already able to handle around 2.8 million TEUs,” Wisnu said.

SOP of MTI the Highest in SE Asia MTI is able to conduct stevedoring activities to 26,000 tons per day

PT Multi Terminal Indonesia (MTI) succeeded to grab an award and admittance from its business partner as a stevedoring company (PBM) with the highest Ship Output Per Day (SOP) in Southeast Asia region, with total SOP of 26,000 tons per day from previously 8,000 tons per day.

“We hope that this working achievement may be able to attract more markets (port users) to use the facilities in MTI, because their berthing time is shorter and thus makes lower operational cost of ship,” Saptono Irianto Rahayu, the President Director of MTI who was accompanied by Imanudin, the Corporate Secretary of MTI, said in Jakarta recently.

Saptono, who was the ex-General Manager of PT Pelabuhan Tanjung Priok, admitted that he was happy to see the MTI’s working achievement. At least, the company has involved in the effort to smoothen cargo throughput via Priok port, and thus help to roll up the wheel of national economy. To the market, MTI offers three business segments via multi purpose terminal, container terminal and logistics service.

In the multipurpose terminal, the facilities are among others 5 berths. Berth No. 144 with draft of -11 LWS and extended to 350 meters length, Berth No. 300 with depth of -12 LWS and 258 meters length, Berth No. 207 with depth of -6 LWS and 144 meters length, Berth No. 007 North with depth of -5 LWS and 75 meters length and Berth No. 005 South with depth of -4 LWS and 14.6 meters length. “Most of the berths also have been completed with Warehouse No. 114 with total space of 4,950 m2 and Yard No. 114 that spreads for 900 m2,” Saptono said. Meanwhile, in the container terminal, it has 404 meters length of berth with depth of -8.7 LWS.

It is completed with 59,981 m2 container yard with Harbor Crane (HC) with a capacity of 9,907 TEUs. There are also 104 units of reefer plugs with 26 BCH per hour. Other supporting facilities are 4 unit Gantry Crane with 35 tons capacity, 11 units Rubber Tired Gantry 35 tons, one unit side loader of 15 tons, one unit top loader of 35 tons, one unit reach stacker of 35 tons, 16 units of head truck with 40 tons capacity each, 16 units chassis with 40 tons capacity, and two units weight bridge with capacity of 60 tons each.
Meanwhile, at the Logistics unit, MTI has prepared facilities like Cargo Consolidation/Distribution Center (CCC/CDC) in Banda, field No. 107 with total area of 7,291 m2, Open Storage No. 215X in Banda Street that spread to 25,632.41 m2 and the Pasoso Container Terminal with total area of 14,383 m2. ProductionSaptono also revealed that until the third quarter of 2008, total ship calls were 899 ships, or increased by 44.53% if compared with the same period in 2007, which were recorded only 622 ship calls.

Stevedoring production at multipurpose terminal until the third quarters of the year was 447,525 tons for general cargoes and 428,567 tons for bag cargoes. Meanwhile, in the stevedoring service of bulk cargo, it was recorded 2.2 million tons, down if compared with last year’s period, which recorded 2.9 million tons. The declining, Saptono said, was mainly caused bay low exports of bulk cement and clinker.

“In addition, since April 2008, Berth No. 114 and Berth SS haven’t been able to run optimally because they are being rehabilitated. It is expected that the works will be finished this year, and by 2009, they can resume the operation to serve ships with draught -13.5 LWS,” he said. The increase of stevedoring production was also recorded at the container terminal Regional Harbor, which noted 128,093 TEUs, up by 23.15% if compared to the same period in 2007.

“As an effort to improve services and the optimizing of terminal, we have provided container tracking service via SMS, which will record the information of the container’s location, handling charge estimation and ship call schedules on our berth,” Saptono said. According to him, shipping lane and the basin at Berth No. 009 would be dredged to reach the depth of -9.5 LWS and would build a warehouse for behandle activity.

This terminal 009 also has got certificate Statement of a Port facilities No. 02/0223-DV from the Directorate of Sea Transportation which declares that the terminal has met ISPS Code standard. Meanwhile, in CDC Banda and CDC Nusantara, total production of exported cargoes until the third quarter of the year was 86,562 ton/m3, increased by 34.5% if compared to the same period last year which was 64,363 ton/m3.

For imported cargoes, the production was 120,035 ton/m3, increased by 5% than last year’s period, which was 114,321 ton/m3. Saptono called on all of his executive members and also operational staff to keep improving their performance professionally, so that shippers would remain interested to use the facilities in the MTI. “We keep preparing professional human resources here, as well as qualified facilities,” he said.

December, Container Handling Charge in TPS Rises

PT Terminal Petikemas Surabaya (Surabaya Container Terminal – TPS) plans to increase the Container Handling Charge (CHC) to 14% per December 1, 2008, after successfully reaching an agreement with several port users’ associations in Tanjung Perak Port. Corporate Public Relation of PT TPS, Wara Djatmika said numbers of associations in Tanjung Perak Port, as port customers, have approved the increase of CHC tariff. In the last meeting on October 17, 2008, there was the agreement between TPS (Surabaya Container Terminal) with port related associations, including INSA (Indonesian National Shipowners’ Association) Surabaya. The agreement was closely related to the amount of CHC tariff hike to 14% and officially applied on December 1, 2008,” he said.

Wara admitted that firstly the effort to implement CHC tariff hike was rejected by the port business community. The rejection was based on the objection that economic condition currently was not so good, and therefore it was assumed to burden the businesspeople.

“Firstly, we expected to apply the new CHC tariff on November 1, 2008. But numbers of associations, especially INSA, wanted that it could be applied in 2009. The new CHC tariff actually had been approved by the Minister of Transportation on September 2, 2008,” he said.

He said, with the new 14% tariff hike, then the CHC for 20-foot container, which previously was US$70, would be US$80 per box. Meanwhile, CGC tariff for 40-foot container was up from previously US$105 to be US$120 per box.

New Officers

Wara disclosed that this subsidiary of PT Pelabuhan Indonesia III was just replacing its Managing Director from Adji Pamungkas to the new officer Mohammad Zaini.

“Mr. Zaini previously held the position of Deputy Managing Director of PT Portek (a joint venture firm of PT Pelindo III and Portek System of Singapore), whereas Adji Pamungkas would be posted at other place. The process of inauguration has been held on October 28, 2008,” he said without detailing the new post of Adji. However, according to the source of the Ocean Week, Adji would hold the position as one of commissioner at one of Pelindo III’s subsidiary.

AIRIN Offers Depot, Agency and Fumigating Businesses

As an effort to improve service to its customers, the management of PT AIRIN (Indonesian Air & Marine Supply) has expanded its container yard to 2.2 hectares more with total investment value of Rp 4.5 billion. It also plans to add one unit of reach-stacker with 45 tons capacity in 2009.

Container yard expansion was intended to anticipate whenever Yard Occupancy Ratio (YOR) at Jakarta International Container Terminal (JICT) and in Koja Container terminal (TPK Koja) was too high, which usually forced the two terminal operators to overbrengen (relocate) the containers to a Temporary Container Yard (TPS) nearby.

Sukardjo, the President Director of PT AIRIN who was accompanied by Sigit Slamet Haryadi (Human Resources and General Affairs Manager) told the Ocean Week that in order to provide and increase its services to the port users, AIRIN has prepared several suitable facilities. “Our container yard has been expanded to reach 6 hectares. In 2009, we plan to add one more reach stacker,” he said.

The decision to expand container yard was taken because PT AIRIN management saw that container depot business was quite prospective. “We have held plenty of cooperation with other private firms in the operation of our installed facilities, such as PT Transporindo, PT Transworld Centralindo Logistics and others,” he said.

However, for the operation of TPS, AIRIN decided to operate it personally, because the TPS has got license from the Ministry of Finance No. 4674/KPU.01/2008 dated September 2008. Meanwhile, for its operational license, it has been given by the Customs Office of Type A Primary Office in Tanjung Priok number S-2334/KPU.01/BD.07/2008 dated September 24 2008.

Sukardjo felt optimistic that with the current facilities, AIRIN would be able to backup export-import containers, including container behandling activities in JICT, which so far was focused in PT Graha Segara. In addition, the location of AIRIN to JICT and TPK Koja is only 1 kilometer.

Meanwhile, Sigit Haryadi revealed that the company has succeeded to exceeding the revenues target in 2008. “In the company’s working and budgeting plan (RKAP) 2008, it was set at Rp 21 billion. But the target now has been exceeded at the seventh month of 2008, so the company now should set higher target next year,” he said.

PT AIRIN, which in the early of its establishment in the 1970s was focused on the ship’s expedition and warehousing, now following the business development in Priok, has changed to be TPS.

Sukardjo also added that the company observed that it needed to hold business diversification, so it decided to enter fumigation and agency business. “Fumigation business has got approval from the Ministry of Agriculture,” he said.

It is expected that the diversification would enable the company to remain existed in the future, so that AIRIN might enjoy a little bit of container throughput via Tanjung Priok, which currently is around 3 million TEUs.