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Govt to transform port system to hub-and-spoke
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New Priok Container Terminal in Kalibaru, North Jakarta was inaugurated on Sept. 13 by President Joko "Jokowi" Widodo. (Courtesy of Presidential Office/Press Bureau)
T
he government plans to transform Indonesia’s port system from a point-to-point, or direct-route, operation to a hub-and-spoke model, Transportation Minister Budi Karya Sumadi said.
Currently, goods are shipped directly from international ports to ports throughout the country. With the new concept, Budi explained, several Indonesian large ports would act as hubs, strategic centers of the networks, and the spokes would radiate out to connect remote points throughout the country.
"We know we have big ports, such as Tanjung Priok [Jakarta], Tanjung Perak [Surabaya], Belawan [Medan] and Makassar [South Sulawesi], but none of them serves as a hub. They mostly still depend on other international ports. With this role, we are going to conduct reforms based on this hub-and-spoke concept," Budi Karya said in Jakarta on Tuesday.
The new concept will strengthen Tanjung Priok’s role as a domestic and international hub port. Therefore, imported goods from Europe and China will transit through Tanjung Priok.
However, he said the new system had to be coupled with service improvements. Dwell time, which begins from the time a ship berths at a port to the time its cargo is unloaded and leaves the port, or vice versa, is one of the parameters to be improved.
Currently, dwelling time in Tanjung Priok stands at between 3.2 and 3.7 days, and he aims to reduce the time to 2.5 days. "The image of a port is based on the dwell time," Budi added. (evi)
