from serving to driving indonesia's growth - world...
TRANSCRIPT
From serving to driving Indonesia's growth
World Bank – CIIP Implementation Conference Washington DC – USA, October 17, 2013
R.J. LINO President Director
PT. Pelabuhan Indonesia II (Persero)
Delivering lasting transformation at IPC
1. Includes NE, SE, and S. Asia 2. Includes domestic Note: Container flows based on forecasts excluding empties and transshipment but including domestic for intra-regional trade; some trades excluded for display purposes; CAGR based on 2007-2015 Source: BCG analysis, Singapore case study
Global container flows by main trades, 2015 (M TEUs)
Indonesia an important link in global trade
2 | ENERGIZINGTRADE ENERGIZINGINDONESIA
Rise of middle class drives domestic demand Indonesia’s middle class and affluent population expected to grow by 70 M by 2020 ~
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Tremendous growth and potential to domestic trade
Fast growing, vibrant domestic trade routes
Note: Province to province origin-destination goods flow for all means of transportation (sea, air, land), CAGR 2006-2011 Source: OD Matrix - Ministry of Transportation 2006 and 2011
Inter-island trade has increased ~5x from 2006 to 2011
4 | ENERGIZINGTRADE ENERGIZINGINDONESIA
However, Logistic inefficiency currently bottleneck for growth
It is cheaper to ship goods from Jakarta to Hamburg
than to Padang
Source: Shipping companies, Quotes from domestic logistic company (2012), BCG analysis
5 | ENERGIZINGTRADE ENERGIZINGINDONESIA
The transformation story of IPC
Stage 1 (2009 and before)
Pelindo II
Starting point: "Massive internal
and external challenges"
Stage 2 (2009 – 2012)
Indonesia Port Corporation
Transformation Part I: "Serving Indonesia"
Stage 3 (2012 and beyond)
Indonesia Port Corporation
Transformation Part II: "Driving Indonesia's growth"
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Starting point in 2009: Massive internal and external challenges
Low trust to management
Internal challenges External challenges
Negative public & customers perception
Low employee affiliation New regulation opening the port
market
Low employee and asset productivity
War for talents
Lack of entrepreneurship and energy
More demanding and sophisticated customers
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The creation of our new logo symbolizes change, strength, optimism and agility. It becomes a symbol of pride within the organization for everyone to stand behind
As we take the company forward
Defining the new identity
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The recipe for success: ongoing improvement on soft and hard infrastructure
Grooming of talents
Soft infrastructure Hard infrastructure
Procurement of new handling equipments
Improvement of operations: handling method, process
Improvement of new facilities Improvement of service:
24/7 operations
Land optimization & configuration Deployment of Information & Communication Technology
Development of new ports
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Reorganizing The Terminal Operator
Significant impact achieved for IPC
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Source: IPC
Doubling container
traffic in 3 years
Strong growth in
revenue and profit
Improved public and
customer perception
Ranking of logistics
performance index
improved
2,4 2,5 2,6 2,9
3,1 3,3 3,4
3,6 3,9 3,8
4,6
5,7
6,4
2006 2010
3
7
8
6
4
2
2000
5
2004 2002 2012 2008
Container traffic at Tanjung Priok (million TEUs)
0
1
2
3
4
5
6
7
8
2011 2012 2010 2009 2008
IPC Revenue (Rp Tn)
+1%
+39%
EBIT
75 59
Multiple awards won
• Asia’s Best Container
Terminal Award Year 2011
& 2012
• INSA’s Version Best
Container Terminal Year
2010 & 2011
• Asia HRD Award Year
2012
2010 2012
Example: Long lasting impact created in Pontianak Port
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15 Zero
Wealth-driven demand will likely generaten new ‘hotspot’ for domestic container trade
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PHASE 1 PHASE 2 DEVELOPMENT : 2012 – 2017 ESTIMATE PROJECT COST : US $ 2,5 Billion LENGTH OF BERTH : 4000 M DEPTH : - 16 M LWS First Operation Container Terminal (CT 1) will start in 2014 Container Terminal : 3 Terminal AREA : 132 Ha CAPACITY : 4,5 MILLION TEUs/Year Oil & Gas Terminal : 2 Terminal AREA : 48 Ha CAPACITY : 10,0 MILLION M³ /Year
DEVELOPMENT : 2018 – 2023 ESTIMATE PROJECT COST : US $ 2,2 Billion LENGTH OF BERTH : 4000 M TOTAL CY AREA : 300 Ha DEPTH : - 20 M LWS First Operation Container Terminal Phase 2 will start in 2021 Container Terminal : 4 Terminal AREA : 300 Ha CAPACITY : 8,0 MILLION TEUs/Year
Newpriok port development plan
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Setting up Newpriok for success
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PCS / INAPORTNET: Putting logistics community (B2G-B2B) onto single platform
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Port Community System: INAPORTNET National IT platform for flow of document, information and payment for: B2G
(Port and Custom), G2G and B2B. Service: Vessel and Cargo. Domestic and International. Port service and logistics service (transportation)
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Service Roadmap : National SUPER PORTAL