DRAFT NATIONAL PORT MASTERPLAN 2011 - 2030

Progress and Ideas 09 August 2011

DRAFT MOT MINISTER REGULATION ON A NATIONAL PORT MASTER PLAN (NPMP)

CONSIDERING THAT: a. Article 71, Shipping Law No. 17 the year of 2008 and Article 7, 8, and 9 of Government Regulation No 61, the year of 2009 regarding Ports provide that NPMP shall be formulated b. Based on Article 71 para (4) of the Shipping Law, NPMP shall be decided by the Minister c. Taking into consideration to the statements as described in a and b above, the NPMP is needed to be stipulated in Minister of Transport Regulation REFERRING TO: 1. Shipping Law No. 17 the year of 2008 2. Government Regulation No. 61 the year of 2009 regarding Ports 3. President Regulation No 47 the Year of 2009 regarding Establishment and Organization of State Ministers 4. Minister of Transport Regulation No KM 43 the Year of 2005 regarding Organization, and Working Arrangement of the Ministry of Transport as ammended with Minister of Transport Regulation No 20 the yaer of 2008 Has decided to stipulate: Minister of Transport Regulation regarding NMPM Article 1 NPMP containing National Port Policy and Port Location Plan and Port Hiearchy is an intergrated part of National Port System

Article 2 NPMP provides guidance for stipulating port location, construction, operation and development, and arrangement of a Port Master Plan The NPMP is developed with consideration of: National Spatial Plan, Provincial Spatial Plan, and Local Spatial Plan Potential for regional economic and socio economic development Potential for natural resource development Development of the strategic environment, either domestic or international
Article 3 The NPMP is stipulated for a period of 20 years and should be reviewed and updated every 5 years If there is a change in the strategic environment, the NPMP may be reviewed more than once every years Revision of the NPMP may be made based on the five years evaluation The contain of NPMP is elaborated as described in the Attachment Article 4 Director General of Sea Transport shall supervise and take further action needed to implement the NPMP Article 5 This Regulation shall take into effect as the date of enactment. To promulgate this law to the public, it is hereby ordered to announce the enactment of this Minister of Transport Regulation by placing it in the State Gazette of the Republic Indonesia Stipulated in Jakarta on the dated of ...... 2011 Minister of Transport Freddy Numberi

Draft Outline Attachment: REGULATION OF MOT MINISTER ON A NATIONAL PORT MASTER PLAN

LAMPIRAN : PERMENHUB NO ---- NOPEMBER 2011 PERATURAN MENTERI PERHUBUNGAN TENTANG: RENCANA INDUK PELABUHAN NASIONAL

1. INTRODUCTION 1.1. Vision of National Port Master plan 1.2. Target 2030 2. PRESENT/CURRENT PORT CONDITIONS 2.1. Policy Framework 2.2. Port Traffic, Facilities and Operations

(2) LAMPIRAN : PERMENHUB

3. NATIONAL PORT POLICY 4. FUTURE PORT DEVELOPMENT 4.1. Strategic Environment 4.2. Forecast of Indonesia Port Traffic

(3) LAMPIRAN : PERMENHUB

5. PORT DEVELOPMENT IMPLEMENTATION PLAN 5.1. National Port Development Implementation Plan 5.2. Collector and Feeder Port Implementation Plan 5.3. Human Resources and Institutional Development 5.4. Technology Development for Port Management and Operation 5.5. Port Development Investments 6. CLOSING STATEMENT

CHAPTER 1 : INTRODUCTION 1.1. Vision of National Port Master plan 1.2. Target 2030

Vision of NPMP
The vision is to create a strong economic base that provides port planning and development, in particular as regards with connecting reinventing of port management in Indonesia including empowering port authorities competencies, clear direction and strengthen the main economic drivers and diversify into new sectors /main commodities, inclusive connect more developed regions to lagging regions and achieve sustainable development and targeted economic and social development measures.
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Target 2030
The 2030 vision encompasses . . . a national port system that will contribute to consistently reducing international and domestic transport costs by:
Being able to accommodate the ships that will provide the lowest seafreight costs Serving ships promptly and effectively without causing undue delay Ensuring high levels of cargo handling productivity Optimizing the cost of port service delivery

By 2030, 16 of Indonesias main container ports will need to provide additional capacity. This includes accommodation for 9.4 million TEU at Tanjung Priok, 4.3 million TEU at Tanjung Perak, 1.9 million TEU at Belawan/Kuala Tanjung and 0.9 million TEU at Makassar.
8

Target 2030 (2)

Total investment cost for Indonesias main ports (US$ 19.2 billion):
Cruise, 122 Coal, 2,491 Petroleum, 3,470 Container, 11,517

70-75 % (private sector) and 25-30 % (public sector)

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CHAPTER 2 : PRESENT/CURRENT PORT CONDITIONS 2.1. 2.2. Policy Framework Port Traffic, Facilities and Operations

10

Policy Framework
Shipping Law No. 17/2008 and GR 61/2009 Masterplan of acceleration and expansion of Indonesia economic development/ Indonesia economic corridor (MP3EI) National Transportation System (SISTRANAS) Blueprint of Intermoda/Multimoda Transport KM 15/2010 Blueprint National Logistics System (Draft) National Spatial Plan Act No. 26/2008 Economic Zone of Industries (KEK) Act. No. 39/2009 Investment of Capital Act. No. 25/2007 Fairness of Competation Act. No. 5/1999 Regional Government Act. No. 32/2004 National Development Planning (RPJM, RPJP) Presidential Regulation No. 67/2005 and 13/2010 (PPP) International Conventions related to port affair
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Indonesian Port Traffic by Trade Flow and Cargo Type (000s tons) 2009 (= 930 Mil. Ton)
180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 1999 2009 General Cargo 70,966 143,699 Container Cargo 27,692 88,222 Liquid Bulk 148,644 176,072
000's tons

000's tons

600,000 500,000 400,000 300,000 200,000 100,000 Dry Bulk 1999 95,176 2009 560,366

000's tons

600,000 500,000 400,000 300,000 200,000 100,000 Loading Unloading Export Import General Cargo 55,430 55,430 14,212 18,628 Container 13,610 13,613 30,342 30,658 Dry Bulk 123,771 123,743 303,133 9,719 Liquid Bulk 19,675 19,675 94,769 41,954

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Indonesian Top 50 Ports for Total Traffic by Trade Flow, 2009 (000s tons)
Legend:
60,000 30,000

Export Import Unloading Loading

13

Indonesian Top 50 Ports for Total Traffic by Cargo Type, 2009 (000s tons)
Legend:
60,000 30,000

General Cargo Container Dry Bulk Liquid Bulk

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CHAPTER 3 : NATIONAL PORT POLICY

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National Port Policy

Greater parcipitation of private sector, fair competition in providing maritime transport services (including port services), regional government autonomy, accountability of government institution governance, and greater concern for maritime safety and security and environmental preservation for the sake of national interest. As node of transportation network, gateway for economic activities, interfaces of multimodal transport, promoting industry and trading activities, cargo consolidation centre, promoting wawasan nusantara Separation of regulator and operator functions (reflected by establishing of PA/PMU and Port Business Entity) PA/PMU shall be landlord authority and shall be clearly reflected in the establishment of PA/PMU PA shall have a certain degree of autonomy in organizing commercial port
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National Port Policy (2)

Increasing PSP under fair competition environment PSP could be in term of PPP through concession agreement or other form of cooperation with PA/PMU Restructure the status of Pelindo versus the role of PA landlord organisations and as regulators Clear guidelines on the formulation of operational regulations by PA/PMU The Ministry develops port policies related to:
Planning and development of basic infrastructure including port entrances, lighthouses, aid to navigation, port basin, and breakwater Planning and development of ports (location, function, type of management Planning and development of port hinterland connection

Procedure of new port development (greenfield) and new public terminal shall be clearly formulated
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CHAPTER 4 : FUTURE PORT DEVELOPMENT 4.1. 4.2. Strategic Environment Forecast of Indonesia Port Traffic

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Future Trend of Port Demand

Method Framework for Traffic Forecasting
Voyage data; maritime traffic by port pair, 2009 Socio economic data (GRDP, population, etc.) & Ports statistics Growth of specific commodities demand and productions

Data

Modeling

Commodity Type (11 types) Port-pair OD Matrix Development & Port Demand Identification Modeling Port Demand by Commodity Type Intl & Domestic Traffic (for national level)

Prediction

Prediction of Future condition (MP3EI, specific commodity trend) Prediction of Future Port Demand by Commodity Type Assigning National Port Demand to Specific Ports

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Future Trend of Container Demand

International Traffic, Modeling based on Other Countries & Indonesia GDP Domestic Traffic, by Indonesia GDP High growth of container demand also resulted from containerization of general cargo It is predicted that national container demand on 2030 might reach 29.4 Million TEUs of International Traffic (6.2 Million TEUs on 2009) and 18.3 Million TEUs of Domestic Traffic (2.7 Million TEUs on 2009)
000's TEUs

50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Domestic International

2024

2025

2026

2027

2028

2029

2030

Year

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Future Trend of Port Demand by Commodity Type

2009 Type of cargo General Cargo Container Dry Bulk Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk Type of Trade Foreign Domestic 32,840 61,000 312,852 144 279,303 10,531 5,162 3,832 13,879 110,859 27,223 247,514 14,941 139,349 91 30,665 2,343 60,124 39,349 385 38,485 479 424,946 Total 143,699 88,222 560,366 15,085 418,652 10,623 35,828 6,175 74,003 176,072 91,495 60,923 23,654 968,361 2015 Type of Trade Foreign Domestic 39,213 106,894 328,918 6,700 279,303 13,714 7,323 4,316 17,562 178,042 118,649 30,069 29,323 653,066 3.0 9.8 0.8 89.7 4.5 6.0 2.0 4.0 4.5 5.0 4.0 148,562 65,626 342,135 21,925 203,330 400 39,934 2,639 73,907 52,718 501 51,574 642 609,040 5.0 15.8 5.5 6.6 6.5 27.9 4.5 2.0 3.5 4.5 5.0 5.0 6.2 Total 187,775 172,519 671,053 28,625 482,633 14,114 47,257 6,954 91,469 230,759 119,151 81,643 29,965 1,262,107 4.6 11.8 3.0 11.3 2.4 4.9 4.7 2.0 3.6 4.5 5.0 4.0 4.5 2020 Type of Trade Foreign Domestic 43,294 157,271 310,318 8,757 250,000 16,686 9,346 4,672 20,858 216,653 144,355 37,471 34,827 727,537 2.0 8.0 (1.2) 5.5 (2.2) 4.0 5.0 1.6 3.5 4.0 4.5 3.5 2.2 180,748 100,020 438,906 28,655 272,101 1,000 48,586 2,885 85,679 65,700 610 64,271 819 785,374 4.0 8.8 5.1 5.5 6.0 20.1 4.0 1.8 3.0 4.0 4.5 5.0 5.2 Total 224,043 257,291 749,224 37,411 522,101 17,686 57,932 7,557 106,537 282,353 144,965 101,742 35,646 1,512,911 3.6 8.3 2.2 5.5 1.6 4.6 4.2 1.7 3.1 4.0 4.5 3.5 3.7 2030 Type of Trade Foreign Domestic 50,245 294,234 284,436 14,264 200,000 23,537 14,514 5,422 26,700 315,952 213,681 55,467 46,805 944,867 1.5 6.5 (0.9) 5.0 (2.2) 3.5 4.5 1.5 2.5 4.0 4.0 3.0 2.6 242,911 183,446 675,731 48,947 443,224 2,000 68,536 3,348 109,676 97,252 903 95,136 1,213 1,199,340 3.0 6.3 4.4 5.5 5.0 7.2 3.5 1.5 2.5 4.0 4.0 4.0 4.3 Total 293,155 477,680 960,167 63,210 643,224 25,537 83,050 8,770 136,376 413,204 214,584 150,603 48,017 2,144,207 2.7 6.4 2.5 5.4 2.1 3.7 3.7 1.5 2.5 4.0 4.0 3.0 3.5

Liquid Bulk 136,723 Petroleum & Products 91,110 CPO 22,438 Other Liquid Bulk 23,175 Total 543,415

Average annual growth rate (%) General Cargo Container Dry Bulk Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk Liquid Bulk Petroleum & Products CPO Other Liquid Bulk -

Total 3.1 Source: Prepared by Nathan Associates Inc. as described in text.

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Future Trend of Port Demand

by Economic Corridor Development Area, Forecasting Year 2030 (tons), Base Case
Legend:
500,000 250,000

General Cargo Container Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk Petrolium & Product CPO Other Liquid Bulk

22

Future Trend of Port Demand

Assignment to specific port; container in TEUs
5,000,000

2,500,000

2009 2015 2020 2030

23

Future Trend
Implications of Indonesia Port Traffic Forecast:
By 2020 Indonesia container traffic will be more than double 2009 volumes and will double again by 2030. New and expanded container terminals are urgently required in many locations. Slower growth of dry and liquid bulk traffic means that total cargo tonnage will only increase by 50 percent by 2020 and another 50 percent by 2030. Additional bulk port capacity will be needed in some locations and may be undertaken by private sector.
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Collect and analyze information on existing and planned port facilities including meters of berth and depth Separate facility data into specialized container facilities, conventional berths used for containers and general cargo berths

Method Framework for Investment Requirement

Review overall container and general cargo productivity factors by type and size of facility 3 Estimate existing container and general cargo capacity and compare with existing throughput (calculate capacity utilization) Identify potential for productivity improvements over time due to improved operations and more and higher capacity cranes and another cargo handling equipment

5 Recalculate capacity utilization based on assumed productivity increases 6 If additional capacity needed for container demand and excess capacity exists for general cargo; convert additional conventional berths to container If still additional capacity is needed to accommodate forecasted container demand, assume construction of new berth(s) with a minimum length of 200m and associated yard and equipment

Calculate unit costs for new container berth and associated yard and equipment based on differentiated cost assumptions analysis for individual ports Calculate investment requirements for additional container capacity for new construction and for conversion of conventional berths to container use Identify specific year that additional capacity needs to come on -line.

10

11

12

Identify potential for private sector investment and requirements for public investment

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CHAPTER 5 : PORT DEVELOPMENT IMPLEMENTATION PLAN 5.1. 5.2. 5.3. 5.4. 5.5. National Port Development Implementation Plan Collector and Feeder Port Implementation Plan Human Resources (Implementation Strategy for Continuous and Sustainable Training Program on Port Sector) and Institutional Development Technology Development for Port Management and Operation Port Development Investments (Investment Plan Direction)

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National Port Development Implementation Plan

Port Location and Development Needs in 2030 Prioritized Actions for Connectivity and Port Infrastructure Development to Support the Program of Indonesia Indonesia Economic Corridor 2030 a. Port Development Stage in the Short Term b. Port Development Stage in the Middle Term c. Port Development Stage in the Long Term

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Collector and Feeder Port Development Implementation Plan

The Divestiture Policy Implementation: Port management capacity building (PMU, Local Government, DGST) Funding capital repair and improvement by central government Long term liabilities (maintenance including dredging)

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Collector and Feeder Port Strategy Implementation

Careful clustering of ports mixing attractive ports with some less attractive ports

Provision of additional subsidy to make the ports more attractive A process to deregister and abandon unnecessary ports

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Institutional Development
Art 344 (3) of the Shipping Law No.17/2008 Art 165:3 of the GR No 61/2009 MOT Regulation No. Km 63/2011 MOTs Letter No. HK 003/1/11/Phb 2011 Dated 06/5/2011 to PELINDOS Legal Status as provided in Shipping Law Future org. struct Role and duties Legal Status

How the PA should be established

Organization and working procedure Working area coverage

Internasional best practices ESTABLISHMENT OF PA

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International Best Practices for Port Authority Organisation

PA is characterized by creating automous PA which should be: Financially independent Have their own personnel scheme Have a management that is responsible for and held accountable performance by board

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Legal Status of PA (as Provided in the Shipping Law)

Full Government Agency (Line agency operating port) Its responsibilities directly goes to the Transport Minister Its personnels are civil servant (PNS) Its income serves as state income Its Organization structure based on MENPAN Regulation PA/PMU as a landlord authority shall be clearly reflected in the establishment of PA/PMU
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PAs Role and Duties as Landlord Authority and Regulator

Granting concession or other Master Planning Right to manage port land and water area (Art. 85) Ensuring safety, security and environ mental preservation Providing and maitaining basic infra structure

Providing land and water area

Regulating & supervising port land utilization

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Organisation Structure (Short-Term MENPAN Guidance)

Executive Director

Corporate Services

Customer Services

Planning and Port Development

Accounting; Finance/Asst Mngmt; Legal/Risk Mngt; Personnel; Purchasing; Payroll; Informt Servics (MLS; Port Infmt Services)

Property Mngm; Lease Agreement/Licences; Ops Management; Field Offices; Safety/ Security: Corporate Commnunication

Planning (Master Plan ning; Strategic Planning) Marketing and Sales; Engineering; Environ mental Management

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Future Organisation Structure (with BLU Status)

Board of Directotrs

Executive Director

Corporate Services

Customer Services

Marketig and Promotion

Master Planning and Develop ment

35

Technology Development for Port Management and Operation

Adopting International best practices:
Providing modern infrastructure Highly efficient services level (one stop total services, distribution and logistics consolidation center). Technology Information Communication (TIC), including NSW, CITOS, CIMOS, PORTNET, EDI, VTIS, etc.

36

West Kalimantan No Strategic Ports, regional ports centred around Pontianak (illustration)

37

Port Development Investments

Container Port Investments for Main Indonesia Container Ports, 20152030 (US$ millions)

Region and port North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar

2015 218 12 100 56 -

2020 218 109 166 -

2030 655 109 100 154 80 80 100 120 300

Total 1,092 121 109 100 154 80 80 166 201 177 300

Region and port

2015

2020

2030

Total

Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong

697 70 731 -

349 122 610 -

2,441 610 2,926 131 81 88 81

3,487 802 4,267 131 81 88 81 11,517

Total above ports 1,886 1,574 8,057 Source: Nathan Associates Inc. as described in text.

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Port Development Investments (2)

Investment Requirements for Indonesia Main Ports by Cargo Type, 2011-2030 (US$ million)
Port North and West Sumatera Belawan/Kuala Tanjung Dumai Teluk Bayur Pekanbaru Batam Pembuangan Sibolga Aceh Bintan Teluk Tapang West Kalimantam Pontianak (S. Pemuju) Tlk Air South Sumatera Palembang and Environs Panjang Jambi Bengkulu Tlk Semangka Bangka/Belitung 1,092 121 109 100 154 80 80 124 257 134 37 222 54 60 173 22 15 118 45 1,092 242 302 121 109 251 53 222 46 54 100 98 1,433 102 80 29 137 663 Container CPO Petroleum Coal Cruise Total

117 16 46

38

14 137 663

1,106 -

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Port Development Investments (3)

Investment Requirements for Indonesia Main Ports by Cargo Type, 2011-2030 (US$ million)
Port East-South Kalimantan N th d W t S t Balikpapan & Environs Samarinda Banjarmasin Sangkulirang Container CPO Petroleum Coal Cruise Total

166 201 177 300 4,267 3,487 802 -

48 30 412 36 7 8 -

39 199

578 807 -

122

831 231 1,595 402 54 14 4,644 3,647 221 81 184 797 122

South -Central Sulawesi Makassar Pare-Pare Luwuk and Environs Java Tanjung Priok & Environs Tanjung Perak & Environs Tanjung Emas Pelabuhan Ratu Balongan/Cirebon Cilacap Jepara (Tg Jati) 13 Other Locations Bali-NT Tanah Ampo

66 54 7 377 152 221 81 184 797

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Port Development Investments (4)

Investment Requirements for Indonesia Main Ports by Cargo Type, 2011-2030 (US$ million)
Port
The East Bitung Jayapura Merauke Ambon Sorong Halmahera (Ujung Pulau) Total S N th A i t I

Container

CPO

Petroleum
15 26 31 17 10 3,470
Cruise, 122

Coal
2,491

Cruise
122

Total
131 96 26 119 98 20 19,249

131 81 88 81 10 11,517 1,649 d ib d i t t

Coal, 2,491 Petroleum, 3,470 Container, 11,517

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Indicative Funding Requirements by Private and Public Sector for Development of Port Facilities, 2011-2030 (US$ millions of 2010)
Estimated Share Likely Funded by Capital Private Requirements Sector Gov't 75% 85% 85% 85% 50% 25% 15% 20% 20% 50% Amount Required from Private Sector Gov't 8,638 1,402 2,950 2,117 61 15,168 2,879 247 694 498 61 4,380

Type of Facility

Container 11,517 CPO 1,649 Petroleum 3,470 Coal 2,491 Cruise 122 Total 19,249 Source: Nathan Associates Inc.

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TERIMA KASIH

43

Main container ports forecasted traffic

Region and port North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong 2009 4,062.8 927.4 229.7 2,305.8 338.8 296.1 760.4 140.8 924.7 639.0 809.4 1,166.1 3,763.7 703.9 6,686.0 10.0 1,043.2 63.7 100.8 307.4 10.9 319.3 GenCar (000 tons) 2015 2020 5,309.0 1,211.8 300.2 3,013.0 442.7 386.9 993.7 183.9 1,208.3 835.0 1,057.6 1,523.8 4,918.1 919.8 8,736.7 13.0 1,363.1 83.3 131.7 401.6 14.3 417.3 6,334.4 1,445.9 358.2 3,594.9 528.2 461.7 1,185.6 219.5 1,441.7 996.3 1,261.9 1,818.1 5,867.9 1,097.4 10,424.1 15.6 1,626.5 99.4 157.2 479.2 17.0 497.8 39,929 2030 8,288.4 1,891.9 468.7 4,703.9 691.1 604.1 1,551.3 287.2 1,886.4 1,303.7 1,651.2 2,379.0 7,678.1 1,436.0 13,639.8 20.3 2,128.3 130.0 205.7 627.8 22.3 651.4 52,247 2009 888.4 42.1 73.1 104.2 99.2 62.0 301.7 32.0 38.1 95.0 118.0 456.2 1,744.3 575.2 3,922.8 5.7 62.6 27.8 10.1 15.2 3.4 22.0 8,699 Container (000 TEU) 2015 2020 1,737.3 82.3 143.0 203.7 194.1 121.2 590.0 62.5 74.5 185.9 230.8 892.0 3,411.1 1,124.9 7,671.0 11.2 122.3 54.4 19.8 29.8 6.6 42.9 17,011 2,591.0 122.7 213.3 303.8 289.4 180.8 880.0 93.2 111.1 277.2 344.1 1,330.4 5,087.2 1,677.6 11,440.4 16.7 182.5 81.1 29.5 44.4 9.9 64.0 25,370 2030 4,810.4 227.7 396.0 564.0 537.4 335.7 1,633.7 173.0 206.2 514.6 638.9 2,469.9 9,444.7 3,114.6 21,239.9 31.0 338.8 150.5 54.8 82.5 18.4 118.9 47,102

Total above ports 25,610 33,465 Source: Nathan Associates Inc. as described in text.

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Container Terminal Berth Capacity Indicators, 2009-2025

Berth Depth Berths Design Berth Berth-m Length Alongside per Ship Capacity Capacity Year Type of Berth (m) (m) Terminal (TEU) (TEU/ Berth) (TEU/m) 2009 Multipurpose 150 10-11 2 1,000 100,000 667 2009 Sub Panamax 250 12 3 3,000 350,000 1,400 2012 Panamax 280 14 3 4,500 450,000 1,607 2012 Panamax 280 14 4 4,500 495,000 1,768 2014 Post Panamax I 300 15 3 5,700 500,000 1,667 2014 Post Panamax I 300 15 4 5,700 550,000 1,833 2017 Post Panamax II 350 16 4 8,000 700,000 2,000 2025 Post Panamax III 400 16-18 4 12,000 1,000,000 2,500 Source: Nathan Associates Inc.

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Capacity Analysis for Main Indonesian Container Ports, 2015

Region and port Container TPK Conventional Total Cont. Length TEU/ m Capacity Length TEU/ Capacity Total Capacity Capacity Length (000 teu) m (000 teu) (000 teu) Utiliz. % General Cargo Additional Conventional Cont. Capacity Tons/ Capacity Capacity TEU Berth m (000 tons) Utiliz. % (000s) (m)

North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong

850 222 -

1300 845 845 845 845 845 975 845 845 845 845 845 1300 1300 1300 1625 845 845 845 845 845 845 845 845

1,105 188 342 225 827 203 1,105 2,431 644 5,376 190 -

242 217 428 -

650 650 650 650 650 650 650 650 650 650 650 650 650 650 650 650 650 650 650 650 650 650 650 650

157 141 278 -

1,262 188 141 278 342 225 827 57 64 152 304 1,242 2,583 1,090 5,896 27 190 56 66 37 20 55

138% 44% 101% 73% 57% 54% 71% 110% 117% 122% 76% 72% 132% 103% 130% 42% 64% 98% 30% 80% 34% 78%

2,180 838 145 1,714 422 475 532 350 491 703 469 735 7,281 384 5,845 206 1,187 128 152 851 573 197

2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520

5,493 2,112 365 4,318 1,063 1,197 1,341 883 1,238 1,771 1,181 1,852 18,347 969 14,729 519 2,991 324 384 2,146 1,444 497

97% 57% 82% 70% 42% 32% 74% 21% 98% 47% 90% 82% 27% 95% 59% 3% 46% 26% 34% 19% 1% 84%

475 2 -

400 36 200 156 800 192 1,200 2,985

405 266 848 240 850 1,870 495 3,308 225 -

88

57

6 11 34

98 234 156 210 235 687 800 41 -

64 152 102 137 152 446 520 27 -

828 35 1,776 3,165

86 102 58 30 85

56 66 37 20 55

Total above ports Source: Nathan Associates Inc. as described in text.

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Capacity Analysis for Main Indonesian Container Ports, 2020

Region and port Container General Cargo Additional Cont. TPK Conventional Total Cont. Conventional Capacity Length TEU/ m Capacity Length TEU/ m Capacity Total Capacity Length Tons/ m Capacity Capacity TEU Berth (000 teu) (000 teu) Capacity Utiliz. % (000 tons) Utiliz. % (000s) (m) (000 teu) 1,250 222 405 266 848 200 240 850 2,670 495 4,508 225 1,625 1,056 1,056 1,056 1,056 1,056 1,625 1,056 1,056 1,056 1,056 1,056 1,625 1,625 1,625 2,031 1,056 1,056 1,056 1,056 1,056 1,056 1,056 1,056 2,031 234 428 281 1,378 211 254 1,381 4,339 804 9,157 238 242 217 428 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 197 176 348 2,228 234 176 348 428 281 1,378 71 79 402 380 1,552 4,529 1,362 9,807 33 238 70 83 47 24 69 116% 52% 121% 87% 68% 64% 64% 131% 140% 69% 90% 86% 112% 123% 117% 50% 77% 117% 36% 95% 40% 93% 2,180 838 145 1,714 422 475 532 350 491 703 469 735 7,281 384 5,845 206 1,187 128 152 851 573 197 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 7,690 2,956 511 6,046 1,489 1,676 1,877 1,236 1,733 2,479 1,654 2,593 25,686 1,356 20,621 727 4,188 453 538 3,004 2,021 696 82% 49% 70% 59% 35% 28% 63% 18% 83% 40% 76% 70% 23% 81% 51% 2% 39% 22% 29% 16% 1% 71% 363 37 400 200 200 400 200 1,000 2,400

North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong

88

71

22 32

98 234 156 210 235 687 800 41

79 190 127 171 191 558 650 33

558 315 1,634 -

86 102 58 30 85

70 83 47 24 69

12

Total above ports Source: Nathan Associates Inc. as described in text.

2,972

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Capacity Analysis for Main Indonesian Container Ports, 2030

Region and port Container TPK Conventional Length TEU/ m Capacity Length TEU/ m Capacity (000 teu) (000 teu) General Cargo Total Cont. Conventional Total Capacity Length Tons/ m Capacity Capacity Capacity Utiliz. % (000 tons) Utiliz. % (000 teu) 2,878 234 420 348 494 281 1,378 71 291 434 419 1,552 5,179 1,687 11,838 33 238 70 83 47 24 69 167% 97% 94% 162% 109% 119% 119% 243% 71% 119% 152% 159% 182% 185% 179% 93% 143% 216% 66% 176% 75% 173% 2,180 838 145 1,714 422 475 532 350 491 703 469 735 7,281 384 5,845 206 1,187 128 152 851 573 197 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 10,766 4,139 715 8,464 2,084 2,346 2,628 1,731 2,426 3,471 2,315 3,630 35,960 1,899 28,870 1,017 5,863 634 753 4,205 2,829 975 77% 46% 66% 56% 33% 26% 59% 17% 78% 38% 71% 66% 21% 76% 47% 2% 36% 21% 27% 15% 1% 67% Additional Cont. Capacity TEU Berth (000s) (m)

North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong

1,650 222 200 405 266 848 200 200 240 850 3,070 695 5,508 225 -

1,625 1,056 1,219 1,219 1,219 1,056 1,625 1,056 1,056 1,056 1,219 1,219 1,625 1,625 1,625 2,031 1,056 1,056 1,056 1,056 1,056 1,056 1,056 1,056

2,681 234 244 494 281 1,378 211 244 293 1,381 4,989 1,129 11,188 238 -

242 217 428 -

813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813 813

197 176 348 -

1,932 216 44 55 256 102 -

1,200 200 200 200 200 200 200 200 600 2,800 1,000 4,800 200 200 200 200 12,600

88

71

98 234 156 210 235 687 800 41 -

79 190 127 171 191 558 650 33 -

81 219 918 4,265 1,427 9,402 101 81 36 50 19,185

86 102 58 30 85

70 83 47 24 69

Total above ports Source: Nathan Associates Inc. as described in text.

48

West Kalimantan No Strategic Ports, regional ports centred around Pontianak

49

South Sumatra no Strategic Ports, regional ports centred around Panjang and Palembang

50

East and South Kalimantan Strategic Ports: Balikpapan, Samarinda and Banjarmasin

51

South Sulawesi Ports & Terminals centred around Makassar, no Strategic Ports

52

Java, South Sumatra Strategic Ports Regions Jakarta (Tanjung Priok) and Surabaya (Tanjung Perak)

53

Bali, Lombok, Nusa Tenggara and to the south and east No strategic ports

54

The East Strategic Ports: Bitung, Ambon and Sorong

55

The East Strategic Ports: Bitung, Ambon and

56

Assumed Indonesian Port Productivity Factors by Type of Facility, 2009-2030

Type of cargo and terminal Containers (TEU/ m of berth) Specialized Terminal Tanjung Priok Other ports over 750,000 TEU Other ports 300,000-750,000 TEU Other ports under 300,000 TEU Conventional Terminal 2009 2015 2020 2030

1,250 1,000 750 650 500

1,625 1,300 975 845 650

2,031 1,625 1,219 1,056 813 3,528

2,031 1,625 1,219 1,056 813 4,939

1,800 2,520 General cargo (tons/ m of berth) Source: Nathan Associates Inc. as described in text.

57

Assumed Indonesian Port Productivity Factors by Type of Facility, 2009-2030 (2) Incorporated improvements in the productivity factors to reflect:
projected increases in traffic volumes increased vessel sizes provision of higher capacity cranes and more overall cargohandling equipment improved training and performance of operators

58

Assumed Indonesian Port Productivity Factors by Type of Facility, 2009-2030 (3)

Productivity is assumed to improve :
Container :30 % ( 2009 - 2015) ; 25 % 2015 - 2020. General cargo : 40 % (2009 through 2030.
This is due to factors cited above, plus the greater use of unitized or palletized cargo handling in place of individual bags for break-bulk cargo.

The rate of general cargo handling per meter of berth is only 4.9 thousand tons in 2030, The handling of containerized cargo at conventional terminals of 8.1 thousand tons per meter of berth (assuming an average of 10 tons per TEU). Cargo at a specialized container terminal has an assumed productivity in 2030 of over 20 thousand tons per meter of berth.
59