plenary1 rj lino pelindo ii
DESCRIPTION
Plenary Session - Port Efficiency Mr RJ LinoTRANSCRIPT
10/11/2011
1
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
KALIBARU TERMINAL DEVELOPMENT PLAN
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
KALIBARU TERMINAL DEVELOPMENT PLAN
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
UNDERSTANDINGDWELL TIME
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
PRELIMINARYRECOMMENDATIONS
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