containerised dry bulk cargo and its impact to port...
TRANSCRIPT
Containerised dry bulk cargo and its impact to port operations
Dr. Saut Gurning, Lecturer, researcher, and port-consultant at
Institut Teknologi Sepuluh Nopember (ITS) Surabaya, Email: [email protected]
1Presented on 31st of May 2012 10th ASEAN Ports and Shipping 2012 Exhibition and Conference, at Hotel IndonesiaKempinski, Jakarta
Presentation Outline
• Continues improvement of dry market
• Containerisation of dry bulk in Indonesia
• Adaptations that need to be taken
• Problems and strategies
2
CONTINUES IMPROVEMENT OF DRY BULK CARGO MARKET
Stable growth of dry bulk cargoes
• Market is reflected with higher ship carrying capacity compared to the dry shipping demand at 2-3 percen t indicating freight will be more competitive
• Dry bulk cargoes orientating to and from Europe will decline 10 percent . But in contrary with the growth happening in China, Japan, India , and Indonesia
Global dry bulk cargoes
• Annual quantity is predicted around 3,4-3,6 bilyun ton of dry bulk cargoes transporting via sea with an average growth of 5,0-5,5 % per year (DVB 2012, Lloyd List 2012)
• Dominant global cargoes: iron-ores, coal, grains, steel, cement, forest products, agricultural and mining products
• Global unit of dry bulk fleet has been constantly growing at 7-8 percent in 2008-2011
Indonesia dry bulk cargoes (2010-2011)
The volume quantity at 400 million ton (2011) with the annual growth 5-7 percent from 2000-20011
28%
60%
6%
1%
2%4%
Grains
Coal
Fertilizer
Alumunium
Cement
Steel products
Why container shipping is chosen?
• In some cases and periods: Lower charter / freight rate and transportation costs
• Availability of container ships better than dry bulk carrier
• The growth of containerisation of transport operation
• Better logistics supports
• However, the lack of port supporting facilities may hinder cargo owners applying containerised shipping
CONTAINERISATION OF DRY BULK IN INDONESIA
0%
5%
10%
15%
20%
25%
30%
1995 1997 1999 2001 2003 2005 2007 2009
Percentage
Year
RATIO OF CONTAINERISATION BULK CARGOES
Container Services
Containerisation of Dry Bulk in Indonesia
• Exploration study/survey on grains products in Indonesia (2008-2011) finds that 28-30 percents of national dry bulk cargo has been transported by containers
• The level is intented to be higher if national dry bulk carriers can not be fulfilled
• In addition, the demand of containerised dry bulk cargoes will increase as the impact of better and more efficient performance of containerised logistics operations
10
IBT
Adang
Taboneo
BCT
Jorong
Apar
30 DOMINANT DRY BULK TERMINALS IN INDONESIA
15-30 MT
10-14 MT
Less than 10MT
KBS
Gresik,
Lamongan
Tanjungwangi
Berlian
Studi Case of Australia-Indonesia wheat supply chain (2006-2011)
3.0
3.0
3.0
3.0
14.0
5.9
14.0
7.0
5.0
13.0
6.0
12.0
2.7
3.0
1.0
3.6
2.0
3.0
3.0
3.0
21.0
21.0
3.0
3.0
0 5 10 15 20 25 30 35 40 45 50
Bulk to Perak
Container to Perak
Bulk to Priok
Container to Priok
Days
farm
handl+proc
Distrib + ter
Shipment
Saler+Ret
Fin-Cons
BelawanPriok
PerakTj Emas
BaritoMakassar
Container (TEU)
Bulk (20 tons)
0
500
1000
1500
2000
2500
3000
3500
4000
Cost (US$)Container (TEU)
Bulk (20 tons)
The container transport of raw wheat has been more competitive
than dry bulk transport operation
Potential market to be explored
• National service level for dry bulk logistics (mainly for non-coal cargoes) is limited
• Internally, the throughput progress of dry bulk-related cargoes is growing including asset utilisation (ship unloader/quay crane, and land) and revenues
• The service of containerised dry bulk cargoes both at container and dry bulk terminal in Indonesia which is relatively rare in Indonesia
ADAPTATIONS THAT NEED TO BE TAKEN
Development options based on dry bulk service innovation
Hinterland/
Foreland
Facility
Expansion
For dry
Container
Barge
Service
Jetty Mgmt
Service
Objectives
• Logistics efficiency
• Higher Value added value
Regional dry bulk
Centres in
Indonesia
Rail service
for dry bulk
cargoes
Strategic
Cooperation
Logistic
Services on
Dry Bulk
New Innovation on dry bulk cargoes
Containerised Dry Bulk Transport: Container Shipping and Rail Services
Service strategies that may be developed:
• The development of Dry bulk terminal • The provision of dedicated terminal for containerised dry bulk cargoes
for LCL/FCL* Consolidating service for containerised dry bulk cargoes
Regionalitation dan Polarisation of Dry Bulk Operations
Terminalition of dry cargo chain
Port of Los Angeles/Long Beach (2009)Rodrigue dan Notteboom (2009)
Jetty Management Service
Various dry bulk-related cargo providers and owners are quite reluctant to have their own operation team particularly on :• Electrical generation plant• Cement plant• Fertilizers’plant• Nickel ore plant• Sands• Grains
Containerised Barge Service
• Emerging dry bulk cargo areas in Indonesia such as Kalimantan/Borneo and Sulawesi/Celebes require a significant quantity of Container Barge
• Orientation for domestic market and small parcels of less than 200 TEUs
Rail Service for Dry Bulk Cargo
The availability of new rail service for dry bulk cargoes on various marketable corridors such as :• Jakarta-Bekasi-Karawang• Cilegon-Bekasi-Surabaya• Jakarta – Merak, Cilegon –
Bojonegara, Rangkasbitung –Pandeglang – Labuan
• Semarang-Surabaya-Probolinggo• East, South, and Central Kalimantan
PROBLEMS AND STRATEGIES
Shipping Cargo
Owners
Terminal
owner
Land
transport
Logistics
providers
• Monopoly
logistics
services
• Adjustment of
tarrif control
• Basic
infrastructure
on dry bulk
cargoes
Higher
inventory
carrying costs
Lower
transportation
budget
Temporary
cargo demand
Difficult to
have a long-
term terminal
contract
Discontinue
of service
volume
Short term
contract
Limitation of
equipment
availability for
dry-bulk
related cargo
Long customs
and
quarantine
procedure
Limitation of
land transport
hauliers/trucks
Availability of
wagon based
on rail
services
The reliability
operation of
land operation
The limitation
of land
infrastructure
including
roads/bridges
Insufficient
Logistics
knowledge
Land
availability for
logistics
centres
The shortage
of skillful
personnel for
dry bulk
logistics
services
Problems and risks of dry bulk logistics
Logistics strategy of Containerised Dry Bulk Cargoes
Logistics
Strategy for
Dry Bulk
FinanceBudgeting?
Insurance?
Investation?
Cargo ownerType of commodity?
Level volumes?
Costs? Quality?
Delivery?
Land TransportRoutes?
Distribution centres?
Frequency? Time?
Quality of Roads?
Number of trucks?
Terminal / JettyContinuity of trafic in/out
Handling equipment?
Inventory facility?
Mar Infor SysIT Solution that may all
Chain linked and
effective?
ShippingCargo guarantee
Standard required
Cargo consolidation
Best practices of implementation
CONCEPT
DEVELOPMENT
PLANNING
DESIGN AND
DEVELOPMENT
COMMERCIAL
PREPARATION
LAUNCH
DEVELOPMENT TIME
Coordination, coopetation,
and collaboration may be
the best strategies to be
implemented
PROVISION OF AREA FOR CONT DRY BULK CARGO
EQUIPMENT/ INVENTORY
CONTAINERISED AND BULK FEEDERING SERVICE
JETTY & FLOATING TERMINAL SERVICES
STRATEGIS ALLIANCE (SOC, JV, JO)
INV
ES
TM
EN
T L
EV
EL
RAIL SERVICE & LOGISTICS SERVICES