sabang the right market segments (part 3

1

Overseas Port Management

Experience That Counts

BKPS Sabang Port Seminar

Capture the Right Segments

For Sabang Free Port

3

GENERAL STRATEGY IS CORRECT

INTERNATIONAL PORT

FISHERY

TOURISM

INDUSTRIES

SECTORS OF FOCUS

4

How to Achieve the Sabang’s “Dream”The challenge is how do you achieve that

“dream” or vision?

Illustration – a humorous story

3 keys or policies

The political will to succeedSound detailed strategy componentsSpeed & first mover advantage in the Aceh context

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The Political Will (Determination)

The foremost & absolute essential requirement.

The project must be supported by the Regency (Kabupaten) Government in terms of policies, finance, regulations & coordination of all relevant agencies to facilitate the project and remove all hindrances.

The projects must not be hindered by any temporary setbacks.

E.g. once you have decided on either Privatization or PPP as the business model – then do it.

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Detailed Strategy ComponentsSabang International Port – 3-Prong Strategy

1) Regional Transshipment Port Bangladesh, Myanmar, Phuket, Penang Belawan, Dumai, Pajang, Sibolga, Padang, etc.

2) Provincial / Aceh Transshipment Port Meulabuah, Bandar Aceh, Lhokseumawe/Blang

Lachang

3) Development of Sabang Cargo Base Free industrial & Commercial in Balohan

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Port : Strengths & Assets

Strategic Location – at top of Malacca Straits

CT3 wharf (423m) + General Cargo Berth (180)

Industrial & Commercial Free Zone (under planning)

Friendly procedures for setting up; tax free; 100% foreign ownership; 100% profit repatriation.

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POTENTIAL AREA OF INFLUENCE FOR SABANG

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Challenges for Sabang Free Port

1) Fierce competition on regional & provincial Level, e.g. Yangon, Penang, Port Kelang, Lhokseumawe, Belawan.

2) Feeder vessel connections to support T/S – none at present

3) No Domestic cargo base to provide critical mass for attracting T/S cargo.

4) Port efficiency & productivity must match competitors’ and international standards

- Issues : terminal layout, equipment, technology & systems disciplined & trained labor,

Ports in Aceh – Provincial Competition

10

Lhoknga

Susoh

Kuala Beukah

Sabang, Meulaboh and Lhokseumawe identified as the potential main deep water ports for Aceh and Nias

11

Sabang Has No Cargo Base at Present

Sabang Ulee Lheue

Ljokseu-mawe

Langsa Meulaboh Sinabang Blang Bin-tang (U)

Blang Lan-cang

(Arun)

Kuala Langsa

Malahay-ati

Lhoknga

Export Volume

315.585 200 144397.052

74.591 381670.618

7 0.026 1713077.084

1010.825 0 0

Import volume

0 0 98332.603

139.501 12782.658

0 0 0 3238.153 30527.485

52560

100,000

300,000

500,000

700,000

900,000

1,100,000

1,300,000

1,500,000

1,700,000

Volume of export and import handled at Aceh Ports in 2011

Tons

Data obtained from: http://bappeda.acehprov.go.id

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SABANG PORT STATISTICS

Data obtained from BPKS

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Sabang Has Small Population Base (2011)

Sabang has a small population that is 0.7% of the overall population in Aceh

Data obtained from: http://bappeda.acehprov.go.id

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Solutions – OPM Can Assist

1) Get feedback from shipping lines, investors and feeder operator taking a stake in Sabang International Port.

2) Get feedback from manufacturing, processing and regional distribution companies to set up in Sabang Free Zone.

3) Improve layout and correct deficiencies in CT3.

4) Hi-impact international marketing; contact key decision makers; use customized package of services & tariff incentives to suit each line.

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Cruise CenterVital Component for Tourism

Correct strategy – Sabang has great natural beauty.

Powerful catalyst for touristic , economic and social developments in the entire Pulau Weh.

Proven statistics : dollars spent by cruise ship and passengers has a multiplier effect of 8 times or more.

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Cruise Berth in Sabang or Balohan?

Data obtained from: BPKS presentation (Strategic Devt & Investment Opportunities; Sabang Free Port and Free Trade)

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Operational Essentialsfor Cruise Terminals

i. Security first and foremost – ISPS certifiedii. Safe & quick berthing & un-berthing.iii. Fast clearing of passengers fm cruise

terminal with maximum time for their local tours. Similarly for embarkation after tour.

iv. Comfortable & smooth running buses (of different sizes) for local tours.

v. Good tour guides.vi. Competitive charges for cruise terminal

services.

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Suggestions for SabangCruise Tourism

Suggest emphasis on eco-tourism – e.g. jungle safari tour; lake tour; water tour to see marine life & corals.

To start with: offer a day’s stay for cruise liner.

Shopping for Aceh handicrafts.

An opportunity to taste Sabang/Acheh food.

Other ideas?

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OPM Can Assist BKPSMarketing to International Cruise Lines

- our cruise consultant managed Singapore Cruise Center for over 10 years bringing the annual passenger turnover from 400k passengers to over 10 m passenger within 10 years.

Master planning of cruise terminal & development

Management & operations of Sabang Cruise Terminal and training locals to take over within 18-24 months.

Syndication of valued added investors, e.g. international tour companies, marina operators, etc

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Singapore Cruise Center

.

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Singapore Cruise Centre – Another View

.

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Singapore Cruise Centre – Ferry Terminal

.

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Marina Bay Cruise Centre

.

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Marina Bay Cruise Centre – Side View

.

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Why Speed is VitalCompetition in port and free zone activities in

Straits of Malacca getting increasingly more competitive.

Sabang or Bandar Aceh – only one can be the winner as an international port or major cruise centre.

Investors funds for projects are limited; shipping lines ports-of-calls or node ports are also limited.

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ConclusionThe political will – determine to succeed by

taking on all challenges and removing all hindrances.

Clarity of vision and plans, e.g. in getting value-added investors, partners, shipping lines, feeder operators, operate first class terminal.

Speed is vital – increase speed to get investors, partners and market share.

Embark on high-power international marketing NOW!

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Thank you