Containerised dry bulk cargo and its impact to port operations

Transcription

1 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, 1 Presented on 31 st of May th ASEAN Ports and Shipping 2012 Exhibition and Conference, at Hotel IndonesiaKempinski, Jakarta

2 Presentation Outline Continues improvement of dry market Containerisation of dry bulk in Indonesia Adaptations that need to be taken Problems and strategies 2

3 CONTINUES IMPROVEMENT OF DRY BULK CARGO MARKET

4 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

5 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

6 Indonesia dry bulk cargoes ( ) Grains Coal 1% 6% 2% 4% 28% Fertilizer Alumunium Cement 60% Steel products The volume quantity at 400 million ton (2011) with the annual growth 5-7 percent from

7 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

8 CONTAINERISATION OF DRY BULK IN INDONESIA

9 RATIO OF CONTAINERISATION BULK CARGOES 30% 25% 20% Percentage15% Container Services 10% 5% 0% Year

10 Containerisation of Dry Bulk in Indonesia Exploration study/survey on grains products in Indonesia ( ) finds that 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

11 30 DOMINANT DRY BULK TERMINALS IN INDONESIA BCT Adang Apar KBS Jorong Taboneo IBT Lamongan Gresik Berlian, Tanjungwangi MT MT Less than 10MT

12 Studi Case of Australia-Indonesia wheat supply chain ( ) Container to Priok Cost (US$) 4000 Container (TEU) Bulk (20 tons) 3500 Bulk to Priok Container to Perak Bulk to Perak Days farm Distrib + ter Saler+Ret 0 Belawan Priok Perak Tj Emas Barito Makassar Bulk (20 tons) Container (TEU) handl+proc Shipment Fin-Cons The container transport of raw wheat has been more competitive than dry bulk transport operation

13 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

14 ADAPTATIONS THAT NEED TO BE TAKEN

15 Development options based on dry bulk service innovation Regional dry bulk Centres in Indonesia Hinterland/ Foreland Objectives Logistics efficiency Higher Value added value Facility Expansion For dry Strategic Cooperation Jetty Mgmt Service Rail service for dry bulk cargoes Container Barge Service New Innovation on dry bulk cargoes Logistic Services on Dry Bulk

16 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

17 Regionalitation dan Polarisation of Dry Bulk Operations

18 Terminalition of dry cargo chain Rodrigue dan Notteboom (2009) Port of Los Angeles/Long Beach (2009)

19 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

20 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

21 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

22 PROBLEMS AND STRATEGIES

23 Problems and risks of dry bulk logistics Shipping Cargo Owners Terminal owner Land transport Logistics providers Monopoly logistics services Higher inventory carrying costs Discontinue of service volume Limitation of land transport hauliers/trucks Insufficient Logistics knowledge Adjustment of tarrif control Basic infrastructure on dry bulk cargoes Lower transportation budget Temporary cargo demand Difficult to have a longterm terminal contract Short term contract Limitation of equipment availability for dry-bulk related cargo Long customs and quarantine procedure Availability of wagon based on rail services The reliability operation of land operation The limitation of land infrastructure including roads/bridges Land availability for logistics centres The shortage of skillful personnel for dry bulk logistics services

24 Logistics strategy of Containerised Dry Bulk Cargoes Finance Budgeting? Insurance? Investation? Shipping Cargo guarantee Standard required Cargo consolidation Mar Infor Sys IT Solution that may all Chain linked and effective? Logistics Strategy for Dry Bulk Terminal / Jetty Continuity of trafic in/out Handling equipment? Inventory facility? Land Transport Routes? Distribution centres? Frequency? Time? Quality of Roads? Number of trucks? Cargo owner Type of commodity? Level volumes? Costs? Quality? Delivery?

25 INVESTMENT LEVEL Best practices of implementation CONCEPT PROVISION OF AREA FOR CONT DRY BULK CARGO DEVELOPMENT EQUIPMENT/ PLANNINGINVENTORY CONTAINERISED AND DESIGN AND DEVELOPMENT BULK FEEDERING SERVICE COMMERCIAL JETTY & FLOATING PREPARATION TERMINAL SERVICES Coordination, coopetation, and collaboration may be the best strategies to be implemented LAUNCH STRATEGIS ALLIANCE (SOC, JV, JO) RAIL SERVICE & LOGISTICS SERVICES DEVELOPMENT TIME