development of multimodal transport in north java corridor
TRANSCRIPT
2
Study focus
Development Theme
Driver for national industry and services provision
Economic centresJakartaBandungSemarangYogyakartaSurabaya
Main economic activity
Food and beverageTextileTransportation EquipmentShippingICTDefence EquipmentGreater Jakarta Area
“to ensure that the infrastructure, services and facilities that areprovided in the Corridor meet the needs of the users of thetransport system, and especially the needs of main economicactivities of the corridor as identified in the MP3EI”
4
Mode choice in principle
Distance
Flow concentration
Cargo value
Cargo perishability/fragility
Cargo density
Road Rail Sea
Low
Low
High
High
Low
High
High
Low
Low
High
6
Geographical Pattern of Intra-Java Freight Flows
0 1000 2000 3000 4000
Banten
DIY
DKI
Jawa Barat
Jawa Tengah
Jawa Timur
Destination
Million tonnes
Ori
gin
Banten DIY DKI Jawa Barat Jawa Tengah Jawa Timur
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Fertiliser, 600,000
Silica, 7,874
Iron Ore, 180000
Petroleum, 496,000
Cement, 450,000
Container, 400,810
Parcel (multiproduct), 110,854
Antaboga (multiproduct),
243,000
Other multiproduct, 130,792 Steel, 25,731
Existing rail freight task (Java) – excl coal.
Source: KTPA, 2012
8
Key Obstacles to Efficient Multimodal Freight Transport in the Java Corridor
GROUP KEY ISSUES
ROAD ISSUES Slow delivery of expressway system
Overloading
Congestion
Suboptimal road investment prioritisation
Distortion due to fuel subsidies
RAIL ISSUES Lack of network capacity
Limitations on train weights and dimensions
Lack of competition
MARITIME ISSUES Limited port capacity
High port access costs
Unreliable port performance
High cost and unreliability of domestic shipping services
MODAL
INTERCONNECTIVIT
Y ISSUES
Poor rail access to port terminals
Scarcity and poor performance of intermodal terminals
Lack of intermodal focus in planning and system management
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Some surprises
• Truck costs are not as high as expected relative to other
modes. This reflects fuel subsidy, lack of RUC and probably
high level of overloading
• Truck travel times are not as low relative to other modes as in
other places. This appears to reflect traffic congestion and
restrictions on truck operation in cities.
• Some high value goods which we would normally expect to
travel by truck are shipped using sea mode (for security
reason), i. e.: electronics and car
• Some low value goods that seem natural targets for rail travel
by road: for example, around 300 trucks each carry 30 tons of
coal daily from Cirebon to Bandung for textile factories around
Bandung.
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Targeting the right cargoesCommodity Comments
Existing bulk traffics Need to avoid complacency
Steel Krakatau steel already sends cargo by both rail and sea, and is interested in increasing non-road share. Also significant growth with the Posco Krakatau steel development.
Port-relatedcontainers
Pressure on landside access to ports will make increased use of rail imperative. Also port-related movement tend to be better suited to rail because there is not – or need not be – a truck distribution leg at the port end.
Niche bulks Rail already has a position in many bulks, but some customers –e.g. cement – have an interest in increasing their use of rail
Java-Sumatrafreight
The need to make the Straits crossing, congestion at the ferry and relatively long distances make this trade a priority target for ro-roshipping services
Automotive A more difficult target for rail, but at least one major manufacturer is interested in considering and rail is quite widely used in other countries.
Jakarta-Surabaya general cargo
It will be difficult for rail or sea to be sustainably profitable in these cargoes, but both rail and sea currently play a minor role in thecarriage of these cargoes. Double-tracking should improve competitive position of rail.
Low
hanging
fruit
More
difficult
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RIGHT infrastructure and services
Immediate(before 2014)
Complete Jakarta-Surabaya double-trackingImprove access links to major portsImprove facilities for handling motor vehicles at T PriokPromote use of full potential of existing intermodal terminalsDevelop common user terminal at CilegonDevelop Cikarang-Surabaya rail services
Mediumterm(2015-2019)
Provide additional container capacity at T Priok and T PerakEnsure all new terminal developments have high quality road and rail accessCreate network of intermodal terminals/dry portsExpand ro-ro services between Sumatra and JavaDevelop specialist rail services for automotive industry
Longer term(2020 and beyond)
Create freight only rail links in congested section of the networkIncrease structural strength of key rail freight links
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The RIGHT supporting policies
Immediate(before 2014)
Set and monitor KPIs for cargo handling performance at key portsAdopt new road design standards for all of strategic freight networkFormally establish peak logistics industry consultative bodyRemove fuel subsidy for heavy diesel fuelsDefine and implement rail track access chargeFoster competition in container terminal servicesModernise PTKAI rolling stock (commence)Adopt point-of-origin approach to enforcement of vehicle limitsFurther streamline customs clearance proceduresIntensify congestion management efforts in major citiesInclude multi-modal transport priority actions in Renstra
Mediumterm(2015-2019)
Restructure government institutions to better support multimodal transportDevelop national road freight strategyProgressively introduce road pricing schemeTrial new approaches to expressway deliveryRevise procedures for prioritising road capacity improvementsRestructure PKAI on business linesProvide customs clearance at all dry portsIntegrate transport considerations into industrial estate planning
Longer term Introduce vehicle booking systems at T Priok and T Perak
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Reform Themes and Supporting ActionsTHEME ACTION ITEM
Improving land transport access to ports
1: Construct Tanjung Priok rail link
2: Complete Tanjung Priok access road
3: Activate Tanjung Perak rail connection
4: Accelerate proposed expressway links to Tanjung Perak
5: Ensure high quality access road to Kalibaru
6: Incorporate planning for rail links in new terminal developments
Delivering increased port capacity
7: Set and monitor Key Performance Indicators (KPIs) for cargo handling performance at key ports
8: Promptly deliver increased container port capacity
9: Improve facilities for handling motor vehicles at Tanjung Priok
10: Introduce a vehicle booking system at the main container terminals
Developing freight rail infrastructure and terminals
11: Complete double tracking Jakarta–Surabaya
12: Develop selected freight only rail links
13: Selectively improve rail track strength
14: Promote use of the full potential of existing intermodal terminals
15: Construct a common user rail terminal at Cilegon
16: Develop a network of new intermodal terminals
Strengthening the freight capability of road network
17: Develop a national road freight strategy
18: Adopt new road design standards for all roads in strategic freight network
19: Trial new approaches to expressway delivery
20: Change the way in which road capacity projects are prioritised
Fostering a more competitive environment
21: Remove fuel subsidy on diesel fuel
22: Progressively introduce a road pricing regime
23: Define and implement track access charges
24: Adopt point-of-origin approach to enforcement of weight limits
25: Foster competition in the provision of container terminal services
26: Modernise PT Kereta Api Indonesia (PTKAI) freight operations
Introducing new service models
27: Promote Cikarang–Surabaya rail services
28: Expand Ro-Ro shipping services between Java and Sumatera
29: Develop specialised rail services for automobiles
Improving planning and trade facilitation
30: Formally establish peak logistics industry consultative body
31: Restructure government institutions to support multimodal approach
32: Integrate transport considerations into planning of industrial estates
33: Intensify congestion reduction efforts in major urban centres
34: Further streamline cargo clearance procedures
35: Provide customs clearance at inland terminals
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Indicative Timing for Recommended Actions..1/2
Short Term
(before
2014)
Medium
Term (2015–
2019)
Long Term
(2020 and
beyond)
In Progress
Action 2: Complete Tanjung Priok access road
Action 4: Accelerate proposed expressway links to Tanjung Perak
Action 9: Improve facilities for handling motor vehicles at Tanjung Priok
Action 11: Complete double tracking Jakarta–Surabaya
Committed
Action 1: Construct Tanjung Priok rail link
Action 5: Ensure high quality access road to Kalibaru
Action 8: Promptly deliver increased container port capacity
Action 18: Adopt new road design standards for all roads in strategic freight
network
Action 23: Define and implement track access charges
Action 25: Foster competition in the provision of container terminal services
Action 33: Intensify congestion reduction efforts in major urban centres
Planned
Action 3: Activate Tanjung Perak rail connection
Action 6: Incorporate planning for rail links in new terminal developments
Action 34: Further streamline cargo clearance procedures
Previously recommended
Action 26: Modernise PT KAI freight operations
Action 13: Selectively improve rail track strength
Action 14: Promote use of the full potential of existing intermodal terminals
Action 15: Construct a common user rail terminal at Cilegon
Investigation and preparation Implementation
15
Indicative Timing for Recommended Actions..2/2
Short Term
(before
2014)
Medium
Term (2015–
2019)
Long Term
(2020 and
beyond)
Action 16: Develop a network of new intermodal terminals
Action 17: Develop a national road freight strategy
Action 19: Trial new approaches to expressway delivery
Action 20: Change the way in which road capacity projects are prioritised
Action 21: Remove fuel subsidy on diesel fuel
Action 22: Progressively introduce a road pricing regime
Action 28: Expand Ro-Ro shipping services between Java and Sumatera
Action 31: Restructure government institutions to support multimodal
approach
Action 32: Integrate transport considerations into planning of industrial estates
Action 35: Provide customs clearance at inland terminals
New initiatives
Action 7: Set and monitor KPIs for cargo handling performance at key ports
Action 10: Introduce a vehicle booking system at the main container terminals
Action 12: Develop selected freight only rail links
Action 24: Adopt point-of-origin approach to enforcement of weight limits
Action 27: Promote Cikarang–Surabaya rail services
Action 29: Develop specialised rail services for automobiles
Action 30: Formally establish peak logistics industry consultative body
Investigation and preparation Implementation
16
Options for Next Step No Initiative Justification Activity Outputs
1. Detailed analysis of specific commodity supply chains (automotive, steel and cement)
To understand what needs to be done for potential commodity to divert to rail, and to provide a basis for estimating the potential size of mode change
Detailed survey on the movement of raw material to final product delivery of specific to improve the understanding on existing commodity movement and its transport system
• Trade and supply chain pattern analysis for each commodity
• Cost and tariff structures• Understanding of barriers to modal
shift in each chain• Estimates of modal share existing and
future2. Diagnostic audit of
dry port performanceTo use the experience of Gedebage and Cikarang Dry Ports to understand what needs to be done to support development of successful dry ports in Indonesia
Diagnostic audit of factors that currently inhibit use of the Gedebage and Cikarang dry ports and analysis of what can be done to remove obstacles to improved performance of these ports and identify lessons learned for future dry port development
• Fact finding problems and constraint in Gedebage and Cikarang
• Detailed recommendations for what can be done to improve situation at these facilities
• Criteria for the selection and development of future dry ports.
3. Assessment of potential intermodal terminal markets
(IMT) and locations
Support planning to develop container yard connected to railway to increase the
flexibility of freight rail
Asses both demand and supply conditions at previously identified potential IMT locations, including
working with PTKAI on potential for development in several stations. Identify the possibility of further development of those container yard
• Potential location • Potential market • Potential development as
“consolidation freight centre”• Operational and business scheme
4. Exploration of potential for Java-Sumatra ro-ro services
Need to develop alternatives in Java-Sumatera corridor to decrease road traffic load
Detailed survey on ro-ro Jakarta –Belawan. Inititalizing assesment to potential demand from Central/East Java – Sumatera corridor
• Potential demand/commoodity (Semarang/Surabaya – Sumatera)
• Lesson learned to Jakarta- Belawan
5. Development of Cikarang-Tanjung Perak service options
More promising (double track vs Pasoso). Support to development freight rail in Java
North Corridor
Assess size of potential market and key determinants of mode choice for this movement. The analysis could
also incorporate an assessment of the feasibility of higher priority for freight trains on the double tracked section of the northern route.
• Potential market Cikarang to East Indonesia
• Problems and constraint to
development (include accessibility to Tjg. Perak Port)
• Modal share existing and future