Logistics services: Sea route remains the favourite

  • 17 Apr 2024

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Bisnis Indonesia - Layanan logistic: Jalur lautan masih idaman

17 April 2024

By Lorenzo A. Mahardhika

High logistics costs are still a problem for the shipping industry in Indonesia. Moreover, most of the cargo traffic in Indonesia, which is an archipelago, still rely on sea transportation. Therefore, effective and efficient port services play a crucial role.

PT Pelabuhan Indonesia (Persero) as a port state-owned enterprise (SOE) has a critical mission to suppress national logistics costs. Pelindo, through its subholding PT Pelindo Multi Terminal (SPMT), mentioned that suboptimal port performance was the main challenge.

SPMT Operations Director Arif Rusman Yulianto said that improving port performance was the responsibility of Pelindo Multi Terminal and its parent company, Pelindo. Ports are the main factor that facilitate logistics supply chain.

SPMT is committed to improving its services quality for existing port users.

“In this sector, we can be involved in lowering Indonesia’s logistics costs,” Arif said at a media gathering in Surabaya on Monday (5/2).

He mentioned that SPMT was striving to enhance port performance by reducing both port and cargo stay times. Specifically, SPMT is working on shortening berth turnaround.

Arif elaborated that standardising services at each port could facilitate the reduction of berth turnaround. Additionally, SPMT will also focus on optimising the commercial aspects of ports, including service quality, revenue sharing, and service tariffs.

Besides that, SPMT will also continue to improve its service system.

He said that SPMT’s services have been integrated with the Pelindo Terminal Operation System – Multipurpose (PTOS-M) application.

According to him, systemising services at ports will facilitate customers and Pelindo Multi Terminal in operating.

He further explained that by reducing berth turnaround would increase the sailing time of ships. Ships would not have to spend extended periods at ports for stevedoring. This increase in sailing time would also reduce operating costs for shipping companies.

Hence, with optimal port performance, shipping companies can avoid additional expenses on fuel and crew while the ship is at port.

Equipment modernisation

On the other hand, Indonesia Chamber of Commerce and Industry (Kadin) Logistics and Supply Chain Department Head Akbar Djohan said that optimal port handling could improve services at non-container ports and suppress logistics costs.

Akbar said that modern port handling equipment at non-container ports was crucial. Cargo volume at such ports could be 10 times larger than container ports.

He said that, with equipment modernisation, non-container ports could also reduce the number of stevedoring staff. Hence, he suggests Pelindo Multi Terminal to transform the handling equipment at non-container ports.

This can be achieved with various efforts, such as the installation of modern conveyor belts and integrated warehouses to expedite stevedoring services.

“Efficient handling and modern facilities would decrease ships' dwell time and minimise lost cargo. Consequently, both port handling and logistics costs could become more efficient and productive,” Akbar said when he was contacted on Saturday (13/4).

Meanwhile, a maritime observer, Saut Gurning, said that the service systemisation implemented by SPMT through PTOS-M would facilitate the company in monitoring port performance.

He mentioned that implementing systemisation through the application could lower logistics costs. Saut highlighted that the primary components of logistics costs to be reduced included expenses for cargo traffic and non-container ships, particularly general cargo, dry bulk cargo, liquid bulk cargo, vehicles, and ferries.

He mentioned that the PTOS-M application has been seamlessly integrated with another Pelindo platform, Phinnisi, utilised for stevedoring activities at docks. This integration takes the form of a work order notice, serving as a reference for equipment operators, truck operators, and others involved in implementing stevedoring services.

Saut added that, in the future, SPMT would still has room for rationalisation across various non-container terminals within SPMT’s groups.

According to him, this can be achieved by strengthening shipping connectivity.

“SPMT could also improve synergic hinterland connectivity with existing port services traditionally,” Saut said.

Saut continued that improving connectivity at ports within SPMT’s group could improve costs in hinterlands.

Saut continued that costs in hinterlands have been a problem for cargo owners.

Furthermore, SPMT also needs to select superior shipping operators or agents to enhance services and reduce berth times through competitive stevedoring activities at both national and international levels.

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