Strategic Alliances to Unlock the Value of Port and Logistics in Sumatera
STRATEGIC ALLIANCES TO UNLOCK
THE VALUE OF PORT AND LOGISTICS IN SUMATERA
Towards Kuala Tanjung
Hub Port City
PT PELABUHAN INDONESIA I (PERSERO)
25 JUNE 2015
13th ASEAN PORTS AND SHIPPING, JW MARRIOT, JAKARTA
PELINDO I PORT DEVELOPMENT | 1
Todays’ agenda
1.
2.
3.
4.
Pelindo 1 at a glance
Challenges of port and logistics
Strategic Alliances to unlock the value
Case studies in Pelindo 1
PELINDO I PORT DEVELOPMENT | 2
Todays’ agenda
1.
2.
3.
4.
Pelindo 1 at a glance
Challenges of port and logistics
Strategic Alliances to unlock the value
Case studies in Pelindo 1
PELINDO I PORT DEVELOPMENT | 3
Pelindo I currently covers 24 ports across Aceh, North Sumatra, Riau and
Riau islands
Pelindo I – Area of works
Malahayati
Lhokseumawe
Aceh
Main Port
1st class
Kuala Langsa
2nd class
Pkl.Susu
Malaysia
Meulaboh
3rd class
Belawan,/BICT
4th class
Kuala.Tanjung
TB Asahan
North Sumatra
Sibolga
Subsidiary
port
Currently under
development
Bg. Siapi-Api
Dumai
Indonesia
Riau
G.Sitoli
Pekanbaru
Pulau Sambu
Bengkalis
S.Pakning
Tj. Uban
Tj.Pinang
TB.Karimun Batam
Slt.Panjang
West
Sumatra
Kuala Enok
Rengat
Tembilahan
PELINDO I PORT DEVELOPMENT | 4
Pelindo I is the single largest port operator in North Sumatra
Key competivenesses of Pelindo I
i Strategically
located ports with
additional port
capacities
Solid port
portfolio with
strategic
locations and
diversified
cargo
iv Solid performance
Diversified cargo ii
handling
driven by a captive
market and untapped
growth potential in
liquid bulk
Strong market iii
position with well
established
clientele
PELINDO I PORT DEVELOPMENT | 5
Top 4 ports contribute about 80% of Pelindo I's total throughput
each year, with Dumai contributing close to half of that
Traffic by primary ports1), 2009 – 2013 [m MT]
+2.4%
81.3
78.4
CAGR
[%]
80.6
> Throughput has been on an
increasing trend, but
decreased by 8% from 2012
to 2013
73.8
67.2
36%
31%
> Over the past 5 years, more
than 30% of Pelindo I's total
throughput have been
contributed by Dumai
37%
36%
+4.2%
33%
17%
19%
16%
11%
11%
– Trend is likely to continue
into the future
15%
12%
17%
15%
14%
5%
4%
9%
2009
Dumai
18%
17%
14%
2010
Belawan
BICT
2011
Pekanbaru
1) Subsidiary port traffic included in that of its primary port
-1.1%
15%
+11.1%
13%
14%
8%
17%
Lhoksumawe
+2.9%
14%
-17.8%
> Dumai and Belawan together,
contributes more than 50% of
total throughput
> Top 5 ports out of the 14
primary ports under Pelindo I,
contributes close ~85% of
throughput each year
4%
16%
15%
2012
2013
+4.1%
Others
PELINDO I PORT DEVELOPMENT | 6
Aceh is dominated by production of palm oil in the south,
as well as production of chemicals and extraction of
minerals in the north
North Sumatra is dominated by agricultural production in
the form of rubber, foodstuffs, and palm oil on its western
side
Riau's economic activity is mainly driven by production of
palm oil, wood products, and rubber throughout the
province of Riau
Production is mainly highlighted by manufacturing of
mechanical & electrical products in Batam as well as mining
of bauxite in Bintan
PELINDO I PORT DEVELOPMENT | 7
Todays’ agenda
1.
2.
3.
4.
Pelindo 1 at a glance
Challenges of port and logistics
Strategic Alliances to unlock the value
Case studies in Pelindo 1
PELINDO I PORT DEVELOPMENT | 8
Despite the on going port development, the industry will face
numerous key challenges
Key challenges for Indonesia's port industry
Infrastructure
Operating above capacity, as
significant investments have not
taken place in the past decades
to upgrade and increase capacity
4
Bureaucracy
Reducing paper work and easing
licensing regime to attract foreign
and promote local investment
2
Regulatory
Lack of favorable access to
foreign investors allowing for
operational control, and
increased investment
5
Geography
Archipelago of 17,000 islands,,
hence thrust to increase
connectivity through ports is a
must to ensure economic growth
3
Competitiveness
Reforming market structures and
positioning for global
competitiveness
6
Labor
Lack of efficient labor class in the
ports system at current incentive
structures; Powerful lobbying
unions
1
PELINDO I PORT DEVELOPMENT | 9
As such key questions to be answered to tackle those challenges in
preparing the long-term strategy
Key questions to be addressed
The winning strategy will be different from the existing one – What is the new
strategy that should be adopted to win the future?
Existing core markets with limited growth potential – How do we grow markets in
Sumatera where production in the hinterland is limited?
New potential for profitable growth – container demand in North Sumatera and
Riau dry bulk in North Sumatera and liquid bulk in Riau are gaining momentum
Revised
formulation of
consolidated
strategy
necessary
Positioning to be updated – The expected shift of market environment requires
adapted business models
Port facilities to be upgraded– What facilities are needed to be upgraded in order
to capture additional demand (including prioritization)?
PELINDO I PORT DEVELOPMENT | 10
Todays’ agenda
1.
2.
3.
4.
Pelindo 1 at a glance
Challenges of maritime logistics
Strategic Alliances to unlock the value
Case studies in Pelindo 1
PELINDO I PORT DEVELOPMENT | 11
Selecting ideal strategic partners involve looking at four key criteria
Schematic profile of "wanted" partner
Ideal partners
> Willingness to start investing
a minority share (e.g. 15%)
potentially followed by a later
integration
> Strategic national or
international growth path
Common
goal
> Robust partner (including
commitment, and joint
business development)
Trustworthy
Potential for
long-term
partnership
Good
fit/synergies
> High cost and sales
synergies potential/fit,
including strategy, brand
portfolio, manufacturing,…
PELINDO I PORT DEVELOPMENT | 12
Todays’ agenda
1.
2.
3.
4.
Pelindo 1 at a glance
Challenges of maritime logistics
Strategic Alliances to unlock the value
Case studies in Pelindo 1
PELINDO I PORT DEVELOPMENT | 13
1. Container Terminal Belaw an
Belawan
Phase I
Phase 2
Existing
Layout Container Terminal Belawan
PELINDO I PORT DEVELOPMENT | 14
2. Terminal Multipurpose Kuala Tanjung
Trestle
Total Capacity
145.000 ton
PTPT
. Du
PrPrat. Du
SaSaat
amet et
m mam
udud a a
er era
a
PT
.PE
LIN
DO
CA
Container Yard
Total capacity:
400.000 TEUs
NT
W1
EEN
2
( 1:1
)
W2
( 1:12
SP
)
.
W3
NG
( 1:1
2
TA
)
KA
W4
0M
.0
50
P=
2
( 1:1
)
Railway’s
Emplasement
W5
( 1:1
2
)
.5
SP .4
SP .3
SP .2
SP
W6
( 1:1
2
SP
)
.
TA
NG
KA
P=
50
.0
0M
W7
( 1:1
2
)
W9
2
( 1:1
)
W8
( 1:1
2)
0
W1
2
( 1:1
)
Layout of Multipurpose Terminal Kuala Tanjung
PELINDO I PORT DEVELOPMENT | 15
THANK YOU FOR YOUR ATTENTION
PELINDO I PORT DEVELOPMENT | 16
THE VALUE OF PORT AND LOGISTICS IN SUMATERA
Towards Kuala Tanjung
Hub Port City
PT PELABUHAN INDONESIA I (PERSERO)
25 JUNE 2015
13th ASEAN PORTS AND SHIPPING, JW MARRIOT, JAKARTA
PELINDO I PORT DEVELOPMENT | 1
Todays’ agenda
1.
2.
3.
4.
Pelindo 1 at a glance
Challenges of port and logistics
Strategic Alliances to unlock the value
Case studies in Pelindo 1
PELINDO I PORT DEVELOPMENT | 2
Todays’ agenda
1.
2.
3.
4.
Pelindo 1 at a glance
Challenges of port and logistics
Strategic Alliances to unlock the value
Case studies in Pelindo 1
PELINDO I PORT DEVELOPMENT | 3
Pelindo I currently covers 24 ports across Aceh, North Sumatra, Riau and
Riau islands
Pelindo I – Area of works
Malahayati
Lhokseumawe
Aceh
Main Port
1st class
Kuala Langsa
2nd class
Pkl.Susu
Malaysia
Meulaboh
3rd class
Belawan,/BICT
4th class
Kuala.Tanjung
TB Asahan
North Sumatra
Sibolga
Subsidiary
port
Currently under
development
Bg. Siapi-Api
Dumai
Indonesia
Riau
G.Sitoli
Pekanbaru
Pulau Sambu
Bengkalis
S.Pakning
Tj. Uban
Tj.Pinang
TB.Karimun Batam
Slt.Panjang
West
Sumatra
Kuala Enok
Rengat
Tembilahan
PELINDO I PORT DEVELOPMENT | 4
Pelindo I is the single largest port operator in North Sumatra
Key competivenesses of Pelindo I
i Strategically
located ports with
additional port
capacities
Solid port
portfolio with
strategic
locations and
diversified
cargo
iv Solid performance
Diversified cargo ii
handling
driven by a captive
market and untapped
growth potential in
liquid bulk
Strong market iii
position with well
established
clientele
PELINDO I PORT DEVELOPMENT | 5
Top 4 ports contribute about 80% of Pelindo I's total throughput
each year, with Dumai contributing close to half of that
Traffic by primary ports1), 2009 – 2013 [m MT]
+2.4%
81.3
78.4
CAGR
[%]
80.6
> Throughput has been on an
increasing trend, but
decreased by 8% from 2012
to 2013
73.8
67.2
36%
31%
> Over the past 5 years, more
than 30% of Pelindo I's total
throughput have been
contributed by Dumai
37%
36%
+4.2%
33%
17%
19%
16%
11%
11%
– Trend is likely to continue
into the future
15%
12%
17%
15%
14%
5%
4%
9%
2009
Dumai
18%
17%
14%
2010
Belawan
BICT
2011
Pekanbaru
1) Subsidiary port traffic included in that of its primary port
-1.1%
15%
+11.1%
13%
14%
8%
17%
Lhoksumawe
+2.9%
14%
-17.8%
> Dumai and Belawan together,
contributes more than 50% of
total throughput
> Top 5 ports out of the 14
primary ports under Pelindo I,
contributes close ~85% of
throughput each year
4%
16%
15%
2012
2013
+4.1%
Others
PELINDO I PORT DEVELOPMENT | 6
Aceh is dominated by production of palm oil in the south,
as well as production of chemicals and extraction of
minerals in the north
North Sumatra is dominated by agricultural production in
the form of rubber, foodstuffs, and palm oil on its western
side
Riau's economic activity is mainly driven by production of
palm oil, wood products, and rubber throughout the
province of Riau
Production is mainly highlighted by manufacturing of
mechanical & electrical products in Batam as well as mining
of bauxite in Bintan
PELINDO I PORT DEVELOPMENT | 7
Todays’ agenda
1.
2.
3.
4.
Pelindo 1 at a glance
Challenges of port and logistics
Strategic Alliances to unlock the value
Case studies in Pelindo 1
PELINDO I PORT DEVELOPMENT | 8
Despite the on going port development, the industry will face
numerous key challenges
Key challenges for Indonesia's port industry
Infrastructure
Operating above capacity, as
significant investments have not
taken place in the past decades
to upgrade and increase capacity
4
Bureaucracy
Reducing paper work and easing
licensing regime to attract foreign
and promote local investment
2
Regulatory
Lack of favorable access to
foreign investors allowing for
operational control, and
increased investment
5
Geography
Archipelago of 17,000 islands,,
hence thrust to increase
connectivity through ports is a
must to ensure economic growth
3
Competitiveness
Reforming market structures and
positioning for global
competitiveness
6
Labor
Lack of efficient labor class in the
ports system at current incentive
structures; Powerful lobbying
unions
1
PELINDO I PORT DEVELOPMENT | 9
As such key questions to be answered to tackle those challenges in
preparing the long-term strategy
Key questions to be addressed
The winning strategy will be different from the existing one – What is the new
strategy that should be adopted to win the future?
Existing core markets with limited growth potential – How do we grow markets in
Sumatera where production in the hinterland is limited?
New potential for profitable growth – container demand in North Sumatera and
Riau dry bulk in North Sumatera and liquid bulk in Riau are gaining momentum
Revised
formulation of
consolidated
strategy
necessary
Positioning to be updated – The expected shift of market environment requires
adapted business models
Port facilities to be upgraded– What facilities are needed to be upgraded in order
to capture additional demand (including prioritization)?
PELINDO I PORT DEVELOPMENT | 10
Todays’ agenda
1.
2.
3.
4.
Pelindo 1 at a glance
Challenges of maritime logistics
Strategic Alliances to unlock the value
Case studies in Pelindo 1
PELINDO I PORT DEVELOPMENT | 11
Selecting ideal strategic partners involve looking at four key criteria
Schematic profile of "wanted" partner
Ideal partners
> Willingness to start investing
a minority share (e.g. 15%)
potentially followed by a later
integration
> Strategic national or
international growth path
Common
goal
> Robust partner (including
commitment, and joint
business development)
Trustworthy
Potential for
long-term
partnership
Good
fit/synergies
> High cost and sales
synergies potential/fit,
including strategy, brand
portfolio, manufacturing,…
PELINDO I PORT DEVELOPMENT | 12
Todays’ agenda
1.
2.
3.
4.
Pelindo 1 at a glance
Challenges of maritime logistics
Strategic Alliances to unlock the value
Case studies in Pelindo 1
PELINDO I PORT DEVELOPMENT | 13
1. Container Terminal Belaw an
Belawan
Phase I
Phase 2
Existing
Layout Container Terminal Belawan
PELINDO I PORT DEVELOPMENT | 14
2. Terminal Multipurpose Kuala Tanjung
Trestle
Total Capacity
145.000 ton
PTPT
. Du
PrPrat. Du
SaSaat
amet et
m mam
udud a a
er era
a
PT
.PE
LIN
DO
CA
Container Yard
Total capacity:
400.000 TEUs
NT
W1
EEN
2
( 1:1
)
W2
( 1:12
SP
)
.
W3
NG
( 1:1
2
TA
)
KA
W4
0M
.0
50
P=
2
( 1:1
)
Railway’s
Emplasement
W5
( 1:1
2
)
.5
SP .4
SP .3
SP .2
SP
W6
( 1:1
2
SP
)
.
TA
NG
KA
P=
50
.0
0M
W7
( 1:1
2
)
W9
2
( 1:1
)
W8
( 1:1
2)
0
W1
2
( 1:1
)
Layout of Multipurpose Terminal Kuala Tanjung
PELINDO I PORT DEVELOPMENT | 15
THANK YOU FOR YOUR ATTENTION
PELINDO I PORT DEVELOPMENT | 16