A Mega Logistics Center Expected in Tanjung Priok

A Mega Logistics Center Expected in Tanjung Priok

*Wisnu Waskita, a logistics observer & practitioner

Indonesia should have a ‘mega logistics’ zone. And since Tanjung Priok handles more than 65% of export import, this port remains an appropriate location to realize the concept, according to Wisnu Waskita, a logistics observer and practitioner.

Wisnu, who is also an executive board for logistics company PT.Tata Waskita Indonesia noted that the existing less integrated logistics service has resulted in cost inefficiency and finally created a high cost paid by end user (consumers).

“Consumers pay higher for the goods they buy. Inefficient logistics cost has contributed significantly to it,” said Wisnu.

Hence, he calls all parties to appreciate and support the program set up by state port corporate PT.Pelabuhan Indonesia II/IPC to build facilities for integrated logistics center at Tanjung Priok Port, in a bid to support fluent flow of export and import from and to this country.

This facility, he said, would be able to create export/import cost efficiency as it will integrate the supply of materials to fabrication on one hand while on the other hand it will integrate the distribution of products from fabrics. In addition, this will also help the process of services for importation of both full container load (FCL) and less than container load (LCL).

“Take lesson from our neighbor country Singapore. This country has designed a mega logistics. We can copy this concept to be applied in Tanjung Priok Port,” he told reporters on Thursday, April 4.

“What the PSA (Port of Singapore) has done is expected to be a motivation for other countries, including Indonesia,” he said.

As the report has said, Singapura has designed to make Jurong as an industrial city, while Tuas is designed to be a port center that can handle more than 65 million TEUs a year.

The Government of Singapore has designed Tuas as a mega port and mega logistics center. The operation of Port of Singapore, including Tanjong Pagar and Pasir Panjang will be removed to Tuas.

Wisnu suggests IPC/PT.Pelindo II as the biggest operator of Indonesia’s port to prepare and build integrated logistics center or mega logistics center, in anticipating the increasing needs of port user and in responding the industry trend toward digitalization and e-commerce.

“Indonesia players should lead the market to and from this country,” he said, adding: “Foreign players are still dominating the market share to and from this country through their agents.”

According to Supply Chain Indonesia (SCI), the value of logistics activities in Indonesia will reach Rp 889.4 trillion in 2019, an 11.56% increase year on year, from Rp 797.3 trillion in 2018.

Infrastructure

Quotingthe data from Central Bureau of Statistics (BPS), Wisnu said that the activities of logistics this year would grow up significantly, thanks to the high growth of non-oil and gas industries, following the improvement of infrastructure.”

So, this is the momentum to build integrated or mega logistics center at Tanjung Priok,” he said.

Inresponding such initiatives, IPC Operation Director Prasetyadi explained that an independent consultant was still doing feasibility study for the facility.

Heexpected the study will be completed this year and would start to build the facility by 2020.

Prasetyadirevealed that the integrated logistics center remained a long-term program of IPC. “Now an independent consultant is still doing study an analysis,” he said.

Accordingto data, in 2018, IPC handled 7.64 million TEUS containerized cargoes, totaling from all its ports. It increased 10.2% year on year, from 6.92 million TEUs in 2017.

PC’s total break bulk (non-containerized cargos) also experience an increase in 2018, by 8.55%, from 57.09 million tons in 2017, to 61.97 million tons.

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