Causing Billions of Loss, Union Urges to Evaluate the Incompetent JICT RTGC Operator Vendor

Damas Jati - 15/01/2018, 13:27

The union of Jakarta International Container Terminal workers - SP JICT - is urging the management to evaluate the new vendor of rubber tyred gantry crane (RTGC) operator - PT. Multy Tally Indonesia - as there are many evidences to say that this operator is not competent. 


 


According to SP JICT its incompetence has resulted in lower productivity, giving much loss not only to JICT, but also to shipping lines, truckers, and shippers. In addition, its lower productivity has resulted in a very longer dwelling time, reaching over 6 days, much longer than the government target of less than 3 days. 


In press conference Sunday (January 14), SP JICT General Secretary Firmansyah Sukardiman explained that the JICT productivity during January had been on free fall, to only 10-14 moves per hour (MPH), from normally 26 MPH. 


As a result, delays took place everywhere, not only at the sea side (shipcalls) but also at the land side (trucking trip). "There is a massive delay of vessels with the record of 44 hours suffered by a CMA CGM vessel," Firman noted. 


“As many as 13 ship calls faced delay in just ten days. In addition, as many as 5 calls moved from JICT to other terminals, including to TPK Koja and MAL,” Firman further said.


This condition, according to Firman, resulted in much loss. “JICT lost much of its income plus extra cost that would be claimed by shipping lines from double berthing. Meanwhile, shipping lines have to pay extra cost due to delay and truckers have much loss from lower trip productivity due to longer waiting time in delivery from the terminal,” Firman explained, adding: “Of course shippers or cargo owners also suffer from it.”


The analysis from SP JICT concludes that in the first 10-days of the PT.MTI operation (January 1-10), JICT total loss reached Rp.8.7 billion, totaling from the loss of income from its three calls move that will be collected from CHC, storage, and lift on/lift off services.


There were three calls that moved from JICT to other terminals from January 1 to 10, including: Posen 1711S with capacity of 1,725 TEUs and KMTC NHAVA SHEVA 17125 with capacity of 1,540 TEUs that moved to TPK Koja and Laila 1803S with capacity of 1,112 TEUs that moved to MAL.


In addition, JICT has to pay extra cost of Rp 112 million for pilotage & tug service due to double handling.


Truckers suffer the highest loss as their productivity has dropped by more than one trip a day, creating a loss of more than Rp 1.5 million/truck/day. In a day, the potential loss of 2,500 trucks serving this terminal reached Rp 3.7 billion or Rp 37.5 billion in ten days.


Meanwhile, shipping lines would suffer loss of around Rp.4.8 billion, totaling of mooring service cost of vessel delays.


“JICT, shipping lines, trucking companies, and cargo owners will suffer more and more loss unless an appropriate solution for this problem,” Firman said.


He said, there is no other solution, except the management has to evaluate the vendor of RTGC operator – PT Multy Tally Indonesia. “We have been on a conclusion that this problem is totally caused by the incompetence of this vendor. Hence, we urge the management to evaluate this vendor as soon as possible; otherwise, we will get more and more loss. And the government’s target to cut dwelling time will never come true, even it will be longer.”


Wrong Solution, Proving Incapability


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In responding the drop of productivity at this terminal, the management of JICT has just asked for RTGC operator assistance from IPC Tanjung Priok Branch. In a letter No 1074/gp-jict/I/2018 dated January 11, 2018, signed by JICT President Director Gunta Prabawa, JICT asked for 40 RTGC operators and 4 coordinators.


The parent company IPC than sent a positive response to the proposal and ordered the IPC Branch Tanjung Priok to soon provide assistance to JICT. In a letter No KP.20.01/12/1/3/SBP/SUM/PI.II-18 signed by IPC Director for HRD and Legal Affairs Rizal Ariansyah dated January 12, the IPC order Branch Tanjung Priok to provide assistance to JICT for three months, from January 12 to April 18. All costs resulted from the assistance will be covered by IPC/Pelindo II Headquarter.


Chairman of SP JICT Hazris Malsyah questioned the solution, saying this proves that the management of JICT and IPC admit the incompetence and incapability of the vendor PT Multy Tally Indonesia. He also questioned why JICT and IPC totally back up this vendor.


First, what we can conclude from those letters that both JICT and IPC have implicitly admitted the incompetence and incapability of PT Multy Tally Indonesia to run the job,” Hazris told Indonesia Shipping Gazette.


Second, this will raise question, why do JICT and IPC totally back up this vendor?” Hazris asked, adding: “It is clear. This vendor is incapable and incompetent to do the job. What should be done by the management is doing evaluation! Not backing it up!”


“There is a hidden agenda behind it, I guess,” Hazris said, adding: “If not, why IPC is ready to cover the costs for operator assistance. It should be claimed to the vendor.”


 PT Multy Tally Indonesia has a Rp 14 billion contract to supply operators of RTGC in 2018.