Plenary1 rj lino pelindo ii

10/11/2011

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R.J. LINO – President DirectorPT. PELABUHAN INDONESIA II (PERSERO)

PORT EFFICIENCY

Port Development And Logistics, Indonesia – Netherlands Business Forum, October 10th 2011

24/7 Operations

RestructureLabour UnionRestructure &

Selection ofStevedoring Co.

ReducingDwelling Time

Information andCommunication

Technology

ProcurementCargo Handling

Equipment

Handling MethodImprovement

Replan &Reorganize Existing

Port Layout

HUMAN CAPITALDEVELOPMENT

PROGRAM

RULE OF THE GAME

GOOD SHIP

PORT IS GOOD

If and only if

Will come

PORT EFFICIENCY

Why Logistic Cost inIndonesia is High ???

PORT EFFICIENCY

PORTPRODUCTIVITY1

2

3

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PRODUCTIVITY IMPROVEMENT PROGRAM

PROGRAMS

Increase Port CapacityWith No Major

Investment

Faster Port Stay Time OfThe Vessel IncreaseNational Fleet CapacityWith No Investment InBuilding Of New Vessel

Significant Impact InReducing Logistic Cost

DIRECT IMPACT

24/7 Operations

Restructure Labour Union

Restructure & Selection ofStevedoring Co.

Reducing Dwelling Time

Information andCommunication Technology

Procurement Cargo HandlingEquipment

Handling MethodImprovement

Replan & Reorganize ExistingPort Layout

Human Capital DevelopmentProgram

PROCUREMENT OF EQUIPMENTNEW EQUPMENT – PORT OF TANJUNG PRIOK

Port of Tanjung Priok

Port of Pontianak

Port of Palembang

PROCUREMENT OF EQUIPMENT

Port of Panjang

1) 1 unit QCC Twin Lift2) 4 units Gantry Jib Crane1) 1 unit QCC Twin Lift2) 4 units Gantry Jib Crane

1) 2 unit QCC Twin Lift2) 4 units RMGC3) 4 units Gantry Jib Crane

1) 2 unit QCC Twin Lift2) 4 units RMGC3) 3 units Gantry Jib Crane

Port of Jambi

Port of Teluk Bayur

PROCUREMENT OF EQUIPMENT

1) 7 units Gantry Luffing Crane2) 3 units RTGC1) 7 units Gantry Luffing Crane2) 3 units RTGC

1) 2 units Fixed Luffing Crane2) 3 units RMGC1) 2 units Fixed Luffing Crane2) 3 units RMGC

Port of Pangkal Balam1) 1 unit fix Jib Crane2) 1 unit platform fix jib crane1) 1 unit fix Jib Crane2) 1 unit platform fix jib crane

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KALIBARU TERMINAL DEVELOPMENT PLAN

PRODUCTIVITY IMPROVEMENT PROGRAM

PROCUREMENT OF PORT EQUIPMENT

Procurement of more than 120 units of different type of crane

1 Quay Container Crane 24 Units

2 Luffing Crane 24 Units

3 JIB Crane 16 Units

4 Rubber Tyred Gantry 32 Units

5 Rail Mounted Gantry Crane 21 Units

6 Harbour Mobile Crane 28 Units

Procurement of Tug Boat & Pilot Boat

1 Tug Boat 21 Units

2 Pilot Boat 5 Units

Procurement of Access Channel Radar Monitoring System for Tanjung Priok

Procurement of Bulk Handling Equipment : Tanjung Priok, Ciwadan, TelukBayur and Pulau Baai


INDONESIA LOGISTICS COMMUNITY SERVICES(I L C S)

ILCS E-LOGISTIKEXTERNAL

SIMOPEL

SIMTEK

SIMPERS

SIMKEU

PELINDO II

PELINDO I, III, IV

Another Port

Airport

NSW

SENDERGOVERNMENT

AGENCYBANK

CDCCFSDEPO

TRUCKINGANOTHERCARRIER

ANOTHERLOGISTIC PROVIDER

RECEIVER

DATA SHARING :• Legal Document/Approval• Tracking/Tracing• Cargo Monitoring• Service/Facility Availability• Billing• Information

SMALL MEDIUMBUSINESS


HOW MANY DAYS DOES IT TAKE TO REMOVEYOUR CONTAINER FROM TANJUNG PRIOK ?

Analysis and Suggestion

THE IMPACT OF DWELLINGTIME IS IMPORTANTFOR GROWTH, COMPETITIVENESS AND URBAN TRAFFIC

1.Productive activities experience delays(especially exports and re-exports)

2.Affects terminal capacity, performance andcost

3.Port is located in a dense urban area and itis close to full capacity: Congestionsaredisruptive for trade and port-cityenvironment

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IMPORT CONTAINER DWELL TIME (ICDT)

THE AVERAGE DWELL TIME IS 4,88 DAYS

The ‘usual suspects” and pre-conceived ideas

• Importers leave use the port as storagefacility

• Custom is not very efficient

IMPORT CONTAINER DWELL TIME (ICDT)

Average ICDT for Different Countries in 2010 (Days)

UNDERSTANDINGDWELL TIME



WHAT IS CONTAINER DWELL TIME ?CONTAINER AND DOCUMKENT FLOWS ARE DIFFERENT BUT CLOSELY INTER-RELATED

Time from unloading the container until the container leaves the port through the main gate

Upstream (Pre-PIB) Customs Clearance Downstream (Release)

DO

CU

MEN

TSC

ON

TAIN

ER

• Unloading from ship• Stacking in container yard

• Prepare Draft ImportDeclaration (PIB)

• Payment of Duties and Taxes

• Submit Import Declaration (PIB)• Channel Assignment• Document Verification and/or

Inspection• Clearance from Customs (SPPB)

• Move to Inspection Yard (for redchannel only)

• Move to Temporary Storage (OBX)

• Removal of container• Loading into truck

• Payment to JICT (SP2)

IMPORT PROCESS

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THERE ARE 2 ADDITIONAL RISK CHANNELSTHAN THE REGULAR CLASSIFICATION

Channel Treatment Risk Analysis

RedPhysical Inspection is required andthere will be a full inspection ofdocuments

• Physical goods (such as total of goods, type of goods,etc)

• Importer with unclear documentation

Yellow Full inspection of documents• Importer with low financial security

• Type of goods with specific requirements

GreenPartial document verification at theend of the process. Imported goodsare released immediately

• Importer with average financial security

MITA -NonPriority(MNP)

Without any intervention, deferredinspection until post clearance

• Importer well known and excellent track record

• Reliable management with clear business pattern

MITA

Priority(MP)

No Interventions. Pre-notification isallowed (input Manifest informationis deferred for PIB submission)anddeferred payment is possible

• Importer well known and excellent track record

• Reliable management with clear business pattern

MITA importers are companies with clean record with Government officials and haveminimum collateral assets.

CUSTOMS CLERANCE STEPS FOR MP IS SUBSTANTIALLYSIMPLE IN PIB SUBMISSION AND PAYMENT SYSTEM

From Customs Point of View: RED YELLOW GREEN

MITA

NON-PRIORITY

MITAPRIORITY

BC 1.1 Exception

Submitted PIB

Payment Reconciliation/Bond

Confirmation of Licencing

Document Inspection

Physical Inspection

Customs Clearance

Document Inspection Post-Clearance

MP advantage over MNP is that it waves the requirement of fulfilling the ManifestNumber in the PIB and it is allowed to have deferred payment

TAKING THE INTERNATIONAL DEFINITION OF DWELL TIME,THE AVERAGE DWELL TIME IS APPROXIMATELY 5.8 DAYS

International definition of dwell time: total container time from unloadingfrom vessel to gate out from the portarea

Data for Tanjung Priok includes datafrom the main terminal (JICT) only:time to the port area gate or time inother container yards (e.g. Inspectionyards and Overbrengen) is notincluded

The 5.8 days average dwell time is an

estimate that incorporates thetime in inspection yards andOverbrengen.

3,7

4,5

4,7

5,5

5,9

7,1

3,5

5,1

0 5 10 15

Prioritas

Mita

Green

Yellow

Red

Obx

JICT Dwell time

Additional Time

until SPPB(outside JICT)

Days

BASIC STATISTICS ANDDATA SOURCE

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THE LARGEST RISK CHANNELS BY NUMBER OF CONTAINERS :GREEN, MITA-PRIORITAS AND RED

THE LARGEST COMPONENT OF DWELL TIME :PRE-CLEARANCE ACTIVITIES (BEFORE SUBMITTING PIB)

LONGEST DWELL TIMES :UPSTREAM (52%) AND DOWNSTREAM (25%) ACTIVITIES

LONG CUSTOMS CLEARANCE TIMES ARE DUE TO INSPECTIONSAND DOCUMENT VERIFICATION

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ANALYSIS ANDKEY FINDINGSANALYSIS ANDKEY FINDINGSANALYSIS ANDKEY FINDINGS

ANTICIPATION ALLOWS THE PRIORITY CHANNEL TO HAVETHE SHORTEST AVERAGE PRE-CLEARANCE TIME

NO SIGNIFICANT DIFFERENCE ON PRE- AND POST-CLEARANCE TIMES BETWEEN GREEN AND MITA (NP)

A LONG TAIL MEANS A NUMBER OF CONTAINERS HAVE DWELL TIMESIGNIFICANTLY LONGER THAN THE AVERAGE

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DISTRIBUTION OF DWELL TIME BY CHANNEL CONFIRMSBASIC STATICS FINDINGS

PRE – PIB TIME PER CHANNEL

WHY THE PERCENTAGE OF ANTICIPATION IS NOT LARGERFOR OTHER CHANNELS ?

• Manifest is usually submitted prior to arrival, however not allconsignees are able to obtain it

• BC 1.1. number is a required field on submission of PIB except forPriority Channel

• Pre-Payment of duties and taxes but:

– Account only available with Priority consignees (not available forFreight Forwarders)

– Relatively cumbersome payment system otherwise

NOBODY LIKES TO PAY :THE COMPLEXITY OF THE PAYMENT SYSTEMS

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POST-CLEARANCE (REMOVAL) TIME PER CHANNELIF MOST CONSIGNEES HAVE A SIMILAR BEHAVIOR,

WHAT ARE THE REMOVAL CONSTRAINTS ?

• In the past JICT tried scheduling with big consignees but it did notwork very well

• There is a need to link the removal process with the export cycleand opening time of shipping line depots (not open on 24/7)

• Not very integrated organization of logistics between consignees,forwarders and truckers

• Limited offer of quality trucking services

• Informal queuing to pick-up containers

• Physical road access are congested

IS 24/7 WORKING ?CONTAINER BY HOUR OF DAY

IS 24/7 WORKING ?CONTAINER BY DAY OF WEEK

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THERE IS A LOT OF CONCENTRATION :CUMULATED ACTIVITY (CONTAINERS) BY CONSIGNEE

A LOT OF CONCENTRATION BUT NO EVIDENCEOF “BAD” BEHAVIOR

PRELIMINARYRECOMMENDATIONS



NOT THE “USUAL SUSPECTS” : SUMMARY FINDINGS

• Half of the dwell time (52%) is before submitting PIB, except forPriority channel (2%)

• There is large concentration on a few consignees (approx 100)

• No evidence of consignees over-stay (use of the port as a storagearea) as a problem: Evidence of removal logistics as a major problemfor all consignees

• There is potential of efficiency gains to reduce customs clearancetimes on the red line (physical inspection)

• Exit of the port is significantly spread out on 24 hours, but theprocedures are concentrated on business hours only

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GOING FORWARD 4 CATEGORIES OFRECOMMENDATIONS TO REDUCE DWELL TIME

a. Reduce pre-clearance delays and promote anticipation (Short-Term)

b. Fluidize logistics of removal (Short Term)

c. Reduce inspection time (Short to Medium Term)

d. Longer term measures, physical investment and location

The Potential Gains (in days) associated with these categories:

a = 0.5 - 1 day

b = 0.4 - 0.8 day

c = 0.3 - 0.5 day

a.) REDUCE PRE-CLEARANCE TIME

b.) REDUCE PRE-CLEARANCE TIME c.) PHYSICAL INSPECTIONS IMPROVEMENTS

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d.) MEDIUM LONG TERM FOLLOW-UP ON THE PROGRESS

THANK YO U