Intermodal Connectivity through Hub & Spoke

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1 Update Mar 2017 Intermodal Connectivity through Hub & Spoke member of

2 HUB Tj. Priok Sea Port (Port Handling) West SPOKE (proposed) East SPOKE Cikarang Dry Port (Customs Clearance & Port Clearance) Cikarang Dry Port work as spoke and hub with Tanjung Priok Seaport

3 Port Code: IDJBK EJIP MM 2100 LIPPO JABABEKA 62% HYUNDAI GIIC SURYA CIPTA KIIC KIM KIKC KBI Connecting industries in the hinterland to the seaport

4 All formalities are completed at Cikarang Dry Port

5 Only vessel berthing and port handling need to be done at the seaport

6 27 shipping lines

7 Flow Chart Seaport Abroad Tanjung Priok (IDJKT) CDP (IDJBK) Bonded Logistics Center Shipper / Consignee Import Process CDP/IDJBK as Place of Delivery On Multimodal B/L By Carrier By Consignee / Forwarder Export Process CDP/IDJBK as Place of Receipt On Multimodal B/L By Carrier By Shipper / Forwarder Cikarang Dry Port as place of receipt or delivery

8 Under Multimodal Transport Bill of Lading

9 Bonded transfer with electronic seal

10 For monitoring & security measure

11 200 ha of integrated port & logistics facilities Empty Depot Bonded Logistics Center 2 (under construction) Office: CDP, Customs, Quarantine, Banking Bonded Logistics Center Physical Inspection Gate Mobile X-Ray CFS Reefer To Surabaya Container Yard To Tg Priok 11

12 Container Yard s capacity 400,000 TEUs per annum

13 128 reefer plugs available

14 Physical Inspection Facilities

15 Mobile X Ray for container scanning

16 Empty Container Depot

17 Special containers handling

18 Container Freight Station for Less than Container Load consolidation Consolidators: Operator:

19 Online Tracking

20 Domestic Rail Freight Service

21 Seaport Dry Port Railway Connectivity Emplacement at the seaport 21

22 Highway & Railway Access Legends: Highway Railway Connecting road from Highway Jababeka New Exit KM 29 Exit KM 31 Cikarang Barat Delta Silicon EJIP Lippo Cikarang Exit KM 34 Cibatu Hyundai 22

23 New Toll Gate KM 29 Cikarang Utama Toll Gate Highway Exit KM 29 Flyover to Jakarta New Highway Exit KM 29 (Coming Soon) 23

24 Smart Port Solution Customs & other government agencies TPS Online TPS online comply E-billing, mobile system CRM implementation Automation & integration order & manifest system Integrated application Fleet management system Terminal Operator billing system (SP3B integrated, etc) e-do CDP System Applications CDP integrated security system Comply to Customs auto-gate Local, mirror, cloud Integrated data center CDP cloud E-seal as integrated platform Data center

25 Connecting Dry Ports: CDP Lat Krabang Benefits Expand and Explore the market Connecting strategic industrial zones and getting closer to the markets One Stop Service Solution Port, Customs, and Quarantine are located and integrated in the same area 6 days Better Visibility and Certainty Predicted lead time and cost using Multimodal Transport Bill of Lading Faster Transit Time 6 days total lead time Lat Krabang Cikarang including 3 days sailing time In Cooperation With Service First Customer s Satisfaction is Our Priority Fastest Transit Time in The Market Page 25

26 Benefits of Hub & Spoke Cargo Owner Streamlined Process One stop service Reduce shipment time & cost Better supply chain planning Liner & 3PL Reduce berthing queue Increased truck utilization Government & Nation Expanding seaports reach to hinterland Developing new economic & production centers in hinterland Increasing sea port handling capacity Reduce dwelling time, congestion, & fuel consumption Lower road & highway maintenance cost 27

27 Bonded Logistics Center in Cikarang Dry Port

28 Definition Bonded logistics center is similar to free trade zone concept where international traders could pile their stock at a designated warehouse or area in Indonesia. With fiscal facilitation import taxes or duty on the stockpile would be deferred, until the stock is bought by a buyer and leaves the warehouse. In several countries it s known as non resident inventory. Page 29

29 Legal Frameworks Gov t Regulation Nr. 85/2015 November 2015 MoF Regulation Nr. 272/PMK.04/2015 December PLB inaugurated by President (including CDP s) March nd Economic Policy Package September 2015 Page 30

30 Goods Ownership in PLB PLB 1 PLB owned Goods are entitled to PLB Operator 2 Supplier owned Supplier-owned goods are consigned to PLB (consignment). Transaction has not yet occurred upon entering PLB 3 Importer owned Goods have been entitled to importer in domestic, and importer stored it temporarily in PLB. Transaction has occurred. Page 31

31 Existing Cotton Supply Chain Origin Country Middle Country Destination Country Farmer Grading Warehouse Distribution Center Regional Distribution Center Distribution Center Buyer PORT STORAGE

32 New Scheme Cotton Supply Chain Origin Country Middle Country Destination Country Farmer Grading Warehouse Distribution Center Regional Distribution Center Distribution Center Buyer DOMESTIC PORT STORAGE

33 Location in Cikarang Dry Port Bonded Logistics Center Bonded Logistics Center 2 (under construction) Logistics Park Warehouses TPP Railway: Domestic International Port (70 Ha): Customs Quarantine Physical Check Container Yard Reefer Plugs CFS Page 34

34 Bonded Logistics Center: Cotton Page 35

35 Bonded Logistics Center 2 (construction progress) Page 36

36 Benefits Bonded Logistics Center Shipper Saving warehouse cost Saving transportation cost Closer to buyer Buyer Certainty in supply Faster lead time Reducing inventory and working capital Government & Nation Increasing logistics efficiency Increasing local industry competitiveness Becoming logistics hub of SE Asia Page 37

37 Thank You Jl. Dry Port Raya, Kota Jababeka, Cikarang, Bekasi 17530, West Java, Indonesia PT. Cikarang Inland Cikarang Dry Port

38 Stakeholders and Customers Terminal Operator (5) PT Mustika Alam Lestari Terminal 3 Land Transporter (2) Logistics Service Provider (40+) Page 39

39 Stakeholders and Customers Shipper Consignee (400+) Page 40