The role of ipc in developing multimodal transportation in java

R.J. LINO President Director

PT. Pelabuhan Indonesia II

Peran IPC dalam Pengembangan Transportasi Multimoda di Pulau Jawa

Workshop BAPPENAS| February 14 , 2013

TRANSPORTING LIGHT TO THE NATION

Tanjung Priok Development Plan

The port serving Jakarta the capital and one of the world great cities

Port of Tanjung Priok is the biggest port in Indonesia (about 60% of Indonesia’s cargo traffic)

Acts as the International Gateway of Indonesia

Tanjung Priok: Trading Heart of Indonesia

3 | ENERGIZINGTRADE ENERGIZINGINDONESIA

Traffic in Tanjung Priok doubled in

last 3 years

Tanjung Priok is becoming the direct

destination port

3

Container traffic at Tanjung Priok (TEUs)

5

7

2006 2008

4

2

2010

6

8

2004 2002 2000 2012

Container traffic at Tanjung Priok (Percentage)

2008 2010 2011

Trans- shipment1

Direct

0

20

40

100

80

60

1. From Singapore, Tanjung Pelepas, and Port Klang Source: IPC

6,2

5,7

4,6

3,8

3,9 3,6

3,4 3,3 3,1

2,9 2,6

2,5

Container Traffic (Port of Tanjung Priok)

65%

29% 18%


-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2009 2010 2011 2012

Cab. Tanjung Priok TPK Koja JICT TOTAL

(TEUs)

2009 2010 2011 2012

Cab. Tanjung Priok 1.509.338 1.762.912 2.544.672 3.046.891

TPK Koja 620.172 754.592 839.245 820.730

JICT 1.675.395 2.095.008 2.295.264 2.346.891

TOTAL 3.804.905 4.612.512 5.679.181 6.214.512

Container Traffic (Port of Tanjung Priok)


Logistics

Center

Land Optimalisation and Reconfiguration

JICT Access Plan Existing Railway

CY Expansion 12 Ha

Another Facilities (18 Ha) - Parking Area - Gate in/out - Railway


Existing International Container Terminal Existing Domestic Container Terminal Reconfiguration International CT Reconfiguration Domestic CT Ro-Ro Terminal Multipurpose Terminal

Logistics

Center

JICT Expansion Plan


Logistics

Center

Port Access Road Project


Passenger Car Storage Area 5 Ha

Passenger Car Storage Area

1.32 Ha

Temporary Landing 1.4 Ha

Passenger Car Storage Area

1.13 Ha

220 m 304 m

Passenger Car Storage Building

10 Ha

Heavy Equipment, Parts & Passenger car

10. 5 Ha

End of 2013 Condition

Tanjung Priok Car Terminal Expansion

Passenger Car Storage Building

5 Ha

CAPACITY 2011 = 250.000 Unit CAPACITY 2013 = 750.000 Unit


NewPriok Terminal Development

Logistics

Center

NewPriok Development

DEVELOPMENT : 2012 – 2017 ESTIMATE PROJECT COST : US $ 2,5 Million LENGTH OF BERTH : 4000 M DEPTH : - 16 M LWS First Operation Container Terminal (CT 1) will start in 2014 Container Terminal : 3 Terminal AREA : 132 Ha CAPACITY : 4,5 MILLION TEUs/Year Oil & Gas Terminal : 2 Terminal AREA : 48 Ha CAPACITY : 10,0 MILLION M³ /Year

PHASE 1

DEVELOPMENT : 2018 – 2023 ESTIMATE PROJECT COST : US $ 2,2 Million LENGTH OF BERTH : 4000 M TOTAL CY AREA : 300 Ha DEPTH : - 20 M LWS First Operation Container Terminal Phase 2 will start in 2021 Container Terminal : 4 Terminal AREA : 300 Ha CAPACITY : 8,0 MILLION TEUs/Year

PHASE 2


Port and Logistic Park Integration

Integrasi NewPriok Terminal dengan Logistics Park


Logistics park typically bring employment and wealth to geographies, benefiting both the public and private sectors

Leverage the Port Facilities

Adequate Job Creation

High Value-Added Employment

Sustainable Business and

Operating Model

• Take advantage of proximity to the port facility and location in bonded area

• Generate significant employment opportunities for the local economy

• Attract medium to high-skilled jobs to serve growing, educated local workforce

• Serve as a concept design for long-term business success with best practice operating model

Pioneering Initiative

• Create a differentiating factor based on innovation

Objectives of the Logistics Park Drivers of Benefits

• By attracting Logistics based industries that

add to the diversity of local industry, with

additional potential for supporting businesses

• By collaborating closely with private sector to

identify business opportunities that support the

hub

• By attracting investments that target skilled

workforce and increase knowledge-based jobs

in the economy

• By generating more trade volume to

strengthen trade links and increase

connectivity of sea port and airport

• By continuing the drive to establish the country

as a “Preferred Global Business Destination”

Logistics

Hub


Existing strengths drive “positioning” options for a logistics park

Port 3PL services Logistic Park

Logistics value-adding services

Packaging and repackaging

Kitting, palletizing

Labeling

Testing and repair

Deconsolidation and

consolidation

Weighing, mixing, filling

Components assembly


The large and growing nature of garment exports from Indonesia makes it a strong candidate to use the services of a logistics hub

Market size and main destinations of Indonesia’s garment exports, 2010(1) Key market trends

• Garments are Indonesia’s leading non-oil export commodity

• Garment export value has grown consistently

• Indonesian Textile Association forecasts garment exports to increase with improvements in the global economy

23%

1% 2%

2% 3% 3%

4%

5% 20%

37%

Total estimated market size: approx US$ 10.7B

(1) Garment exports include both textile fabrics and clothing products Source: Indonesian Textile Association estimates and data

Others

Canada

China

Saudi Arabia

Turkey

S.Korea

UAE

Japan

EU

US

Export Example

2010 forecast

2008 2009 2007 2006 2005

+7% +15%

Indonesia Garment export value (US$ billion)


For instance, a logistics and distribution support facility near the port can help facilitate one-stop servicing of garment exports

Value proposition of one-stop logistics hub & port

• Leverage on strategic location of Tanjung Priok port and its proximity to the logistics hub

• Increased logistics synergies for domestic exporters through reduced transportation time and reduced storage costs

Illustrative

Multiple fabric manufacturing factories in Java

Truck transportation in cool and dry conditions to Jakarta

Packing, labeling and cool & dry storage

facility

Container truck transportation in cool and dry conditions to

Tanjung Priok

International export through container shipment

International export of apparel/ garments

Potential to be serviced at logistics hub

Stuffing into container (LCL or

FCL)


As Indonesia imports a large and growing amount of spare parts and components, this sector too can benefit from the logistics hub

Market size and main origin of Indonesia’s spare parts and components imports, 2006(1) Key market trends

• Significant growth in import of spare part and components

– Import activities in the automotive industry alone have increased by 54% in 2010

– Indonesian manufacturers dependent on imported spare parts & components

• Further growth from automotive spare parts and components industry is expected in the coming years

Total estimated market size: approx US$ 12.6B

17%

3%

6%

9%

13%

26%

5%

5%

3%

6% 7%

Australia

Thailand

US

Others

Saudi Arabia

S.Korea

Malaysia

EU

Japan

China

Singapore

(1) Spare parts and component imports for appliances, electrical equipment, machinery, vehicles and accessories Source: Indonesian Statistics Bureau (BPS) estimates and data

Import Example

All goods that are imported in sufficiently large quantities and consumed across Indonesia can benefit from a centralized logistics & distribution hub


For instance, a storage & distribution center for spare parts is expected to deliver significant benefits in reduced time and storage costs

Illustrative

Automotive spare part manufacturing plant in China

International freight import of automotive spare parts

Container shipment

Truck transportation to logistics hub

Arrival and unloading at

Tanjung Priok port

Container stripping and breaking up of

larger volumes

Truck transportation within Java

Value proposition of one-stop logistics hub & port

• Leverage on strategic location of Tanjung Priok port and its proximity to the logistics hub

• Increased logistics synergies for importers through reduced transportation time and reduced storage costs

Domestic shipment to other islands

Potential to be serviced at logistics hub

Consolidated storage of spare

parts at warehouse


IPC Role for Indonesia Transportation

Public and customers perception improved Logistics Performance Index (LPI)

2010 2012

Ranking of logistics

performance index

International shipments

Logistics quality and competence

Tracking and tracing

Infrastructure

Broad improvement on perception in soft infrastructure...

...despite perception of lack of progress in hard infrastructure

80 57

92 61

80 51

Timeliness 69 41

69 84

Customs 72 75

Overall ranking 75 59

Source:World Bank (2012)


Indonesia Intermodal Connectivity

Multimoda Transportation Energy efficiency = Cost reduction

Tergantung pada ‘harga minyak’, antara 50% sampai 90% dari biaya transportasi adalah berhubungan dengan energi Transportasi laut lebih hemat energi, lebih baik untuk lingkungan, dan lebih murah daripada pengangkutan jalan - Angkutan jalan menggunakan 3 kali lebih banyak energi daripada rel - Rel menggunakan 3 kali lebih banyak energi daripada transportasi laut - Angkutan jalan menggunakan 9 kali lebih banyak energi daripada trasportasi laut

2.0

0.18

0.067

0.026

Air (Large Cargo)

Road (Container)

Rail (Diesel)

Container Ship (3,500 TEU)

Energy used (kilowatts) to carry 1 ton of cargo 1km

Source: The Network for Transport & The Environment


Keterangan:

fungsi biaya Angkutan Jalan, KA, dan Angkutan Laut

digambarkan dengan garis C1, C2, dan C3

D1: jarak tempuh perjalanan 500km

D2: jarak tempuh perjalanan 1500km

Sumber: THE GEOGRAPHY OF TRANSPORT SYSTEMS

• Angkutan jalan memiliki fungsi

biaya yang paling rendah untuk

jarak-jarak pendek (di bawah 500

km), namun akan menanjak

dengan cepat bilamana melebih

jarak tersebut.

• Dalam jarak menengah antara 500

– 1500 km, perjalanan dengan

menggunakan moda Kereta Api

akan memiliki fungsi biaya

terendah.

• Untuk perjalanan jarak jauh (>1500

km) maka perjalanan dengan

menggunakan angkutan laut akan

memiliki fungsi biaya paling

rendah.

Multimoda Transportation Energy efficiency = Cost reduction


BBM SUBSIDI


BBM subsidi di Indonesia lebih rendah 60% dari dari harga BBM non subsidi

Angkutan darat truk / kereta api menggunakan BBM Subsidi

Angkutan laut menggunakan BBM non subsidi, BBM adalah 60% dari biaya cost kapal per-hari

Cost comparison between different mode of transportation

Trucking is a preferred mode of transportation within Java and between Java and Sumatra given the fact that sea transportation is at least 30-40% cheaper. Flexibility and lead time are two key criteria for shippers/consignees to choose their mode of transportation.

Source: Drewry Maritime Advisor, 2012 (* ): 2 days of sailing time, 2 days loading/unloading operations, 4-5 day of waiting time


Projection of container volumes in Java


In the long run, the container volumes from Sulawesi region is projected to grow by an average of 6.8% per year to reach 2.8 m teu by 2030

Source: Drewry Maritime Advisor, 2012

Port and Industrial Area Connectivity

Logistics

Center

Port and Industrial Area Connectivity

KARAWANG INTERNATIONAL INDUSTRIAL CITY

JABABEKA INDUSTRIAL AREA

Keterangan: Jalan Tol sudah beroperasi Jalan Tol dalam tahap Konstruksi Jalan Tol Rencana (JORR2) Rel Kereta Api Eksisting Proposed Rel Kereta Api Marunda - Cikarang


Reducing Domestic Logistic Cost through Pendulum Nusantara

Overview of port capacity in Indonesia

Except for ports located in in Java Island, Belawan, Pontianak, Banjarmasin, Makassar and Bitung have capacity exceeding 300,000 per year. These ports which handled large volumes of container throughput over the past years could be selected as potential candidates for the E-W Shipping Corridor.

Source : Drewry Maritime Advisors, 2012

Overview of port capacity Indonesia


Pendulum Nusantara

BELAWAN

JAKARTA

SURABAYA

MAKASSAR

SORONG

PELABUHAN YANG PERLU DIKEMBANGKAN: BELAWAN, BATAM, JAKARTA, SURABAYA, MAKASSAR DAN SORONG

Reducing logistics cost and boosting domestic trade

Domestic Trade Flows for Indonesia Container Traffic


BELAWAN

JAKARTA

SURABAYA

MAKASSAR

SORONG

Loop Aceh

Loop Pantai Timur Sumatera

Loop Babel and West Kalimantan

Loop Pantai Barat Sumatera

Loop East Kalimantan

Loop West Nusatenggara

Loop West Sulawesi

Loop East Nusatenggara

Loop North-East Sulawesi and North Maluku

Loop Maluku and South-West Papua

Loop North Papua

Pendulum Nusantara Development Scheme of Pendulum Nusantara’s Main and Sub Corridor

Main Sea-Corridor

Sumber: IPC (2012)


Pendulum Nusantara Domestic Container Volumes 2010

Sorong

Belawan

Makassar

Tanjung Priok

Tanjung Perak

Source: Study of David Wignall Associates, Rotschild & Drewry Maritime Advisors


Sorong

Belawan

Makassar

Tanjung Priok

Tanjung Perak




Singapore

Belawan

Sorong

Tanjung Priok Surabaya

Pendulum Service Average shipping costs

JAKARTA (TANJUNG PRIOK) TO

Prior to the Pendulum Service

With the Pendulum Service

SINGAPORE US $ 250 US $ 250

BELAWAN US $ 400 US $ 275

SURABAYA US $ 350 US $ 125

SORONG US $ 2000 US $ 375

Prior to the Pendulum Service

With the Pendulum Service


The role of ipc in developing multimodal transportation in java

Government & Nonprofit

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