1. Internship Presentation by: Silvan van Heel silvanvanheel@hotmail.com Makassar International Hub Port Silvan van Heel PT. Pelindo IV, Makassar

2. Occasion: The fast growth of International trade development provides an opportunity of shifting goods distribution pattern that use containers. Silvan van Heel PT. Pelindo IV, Makassar

3. The Container terminal is considered international when it can have direct shipments between Makassar and Singapore Silvan van Heel PT. Pelindo IV, Makassar Pelindo IV’s objective What are import and export volumes in the hinterland. How can Pelindo IV use this knowledge in order to increase the performance of Container Terminal Makassar? And therefore see if it is possible to get the status of having an international hub port in Makassar and attract foreign container vessels.

4. Objective: To analyse the main drivers for receiving international ship calls in Container Terminal Makassar. Silvan van Heel PT. Pelindo IV, Makassar The objective is to come up with a proposal stating recommendations to improve the position of the Port of Makassar as an international port. This includes a study in the market identifying export and import volumes and suggestions how to direct them to the port of Makassar. Secondly if the container terminal complies with all the required rules, regulations facilities that need an international terminal should have. MarketCompliance

5. The hinterland is the supplier of international cargo and therefore it’s potential is evaluated Silvan van Heel PT. Pelindo IV, Makassar Market Sulawesi Traffic in 2010: 750.000TEU Traffic in 2014: 1.000.000 TEU Sulawesi Traffic in 2010: 750.000TEU Traffic in 2014: 1.000.000 TEU East- Kalimantan Traffic in 2010: 350.000 TEU Traffic in 2014: 480.000 TEU East- Kalimantan Traffic in 2010: 350.000 TEU Traffic in 2014: 480.000 TEU Maluku and Papua Traffic in 2010: 200.000 TEU Traffic in 2014: 300.000 TEU Maluku and Papua Traffic in 2010: 200.000 TEU Traffic in 2014: 300.000 TEU

6. These shipcalls will play a role of significance in directing extra international cargo towards Makassar Container Terminal. Silvan van Heel PT. Pelindo IV, Makassar Market

7. The Makassar Port Master Plan predicts that the port will cater up to 33M tonnes by 2022 and 64M tonnes by 2032 Silvan van Heel PT. Pelindo IV, Makassar Market Reasons for growth: - Makassar New Port - Pendulum Nusantara Reasons for growth: - Makassar New Port - Pendulum Nusantara Total traffic and international volume are related to each other. This is proven by correlation the result was a factor of 0,9. If the total traffic increases so does the international volume. Total traffic and international volume are related to each other. This is proven by correlation the result was a factor of 0,9. If the total traffic increases so does the international volume.

8. The routing will stay relatively the same on both import and export, the main difference will be the point costume-clearance. Silvan van Heel PT. Pelindo IV, Makassar Market

9. After the custom-clearance in Jakarta/Surabaya cargo, ships domestically Silvan van Heel PT. Pelindo IV, Makassar Maluku and Papua Market

10. A significant number of cargo within Pelindo IV’s corridor is recorded as domestic. In fact part of this cargo movement is international Silvan van Heel PT. Pelindo IV, Makassar International volume Recorded as International Recorded as Domestic Market

11. Cargo that is collected will be domestically shipped over the existing connections in the hinterland to Container Terminal Makassar a great extend will be combined and transshipped directly to Singapore. Silvan van Heel PT. Pelindo IV, Makassar Market

12. Available Predicted Volumes Silvan van Heel PT. Pelindo IV, Makassar

13. Monthly Makassar has 1500 TEU Export and 500 TEU import. This is not yet satisfactory for shipping agents to service a vessel between Makassar and Singapore Silvan van Heel PT. Pelindo IV, Makassar 1000 TEU per week 600-700 TEU per move Market With the prediction….

14. A hub port not only provides loading/discharging of cargo and vessel berthing services, but also provides value-added services including transshipment, consolidation, distribution center, vessel repair, bunker, etc. Silvan van Heel PT. Pelindo IV, Makassar Compliance Vessel maintenance services Vessel Bunker services Berth length Container yard Terminal handling facilities Security and safety

15. Pelindo IV is the locomotive in the area of Sulawesi for the Masterplan of Acceleration and Expansion of Indonesia Economic Development (MP3EI). And a contester for an international hub port Silvan van Heel PT. Pelindo IV, Makassar Compliance National regulations involved with international operations: National Policies: MP3EI, National Spatial Plan, National Medium Term Development Plan Ministerial Decrees Rules on Cabotage

16. Checklist requirements Primary Main Port Silvan van Heel PT. Pelindo IV, Makassar Primary Main Port Inter- national Hub Role as international hub port that serves international container transshipment with worldwide scale shipping activities It has the ambition and the facilities to operate international, after completion of the new port their position will be improved. Nevertheless there are no international ship calls Role as main port that serves national and international container movement with 2,500,000 TEUs/year or other equal size modes In 2014 the total movement was approx. 600.000 TEU After the realization of the 1 st phase the total movement will be approx. 1mil TEU per year. (combined with CTM) Role as transshipment port with capacity 3,000,000-3,500,000 TEUs/year or other equal size modes Max capacity is 700TEU Max capacity after realization phase 1 300 TEU Located within 500 mill of international shipping routes Yes Has a minimum depth 12 m LWS12.512 Has a container wharf with minimum 350 m2, supported by 4 cranes, and 15 hectares container terminal 7Gantry cranes 15,2 ha 4 Gantry cranes 16 ha Located about 500-1,000 mill from other international hub ports 458Miles to Surabaya Compliance

17. Reaching a higher port classification can be achieved with physically expanding the port Silvan van Heel PT. Pelindo IV, Makassar Secondary Main Port Inter- national Port Role as national container distribution and international container activities Yes, Role as passengers and container transportation gates YesNo extra Located beyond 500 mill of international shipping routes and within 50 mill of national shipping routes 450mile s to international route Has a minimum depth 9 m LWS12.5m12m Has a container wharf with minimum 250 m2, supported by 2 cranes, and 10 hectares container terminal 7Gantry cranes 15,2 ha 4 Gantry cranes 16 ha Located about 200-500 mill from other international ports 458 Miles to Surabaya Compliance

18. By national regulation Makassar container terminal could function as international Port, however it requires recognition from international maritime organization. Silvan van Heel PT. Pelindo IV, Makassar International regulations: ISO9001 Customs Safety Policies: ISPS code PSC Area for improvement on: Customs Port regulations Compliance

19. The future for Pelindo IV hinterland and the container terminal Makassar shows a good trend. There are multiple strength and opportunities that help to improve the position of the port. Silvan van Heel PT. Pelindo IV, Makassar StrengthWeakness Oppor- tunities Makassar has the largest volume of international cargo in the hinterland nearly reaching the under threshold to get the interest of shipping agencies. Pelindo IV lacks reliable information and statistics about container volume from the hinterland. Information is stored in various methods that makes it hard to compare or not digitally administrated. ThreatsLimited space in the container yard. These will be resolved after the planned expansion “The Makassar New Port”. The realization of this project has been multiple times postponed. It is now projected to be operational in 2017. The custom-clearance in Makassar is not believed to perform as good as in Jakarta and Surabaya. This could lead to extra delays.

20. By national regulation Makassar container terminal could function as international Port, however it requires recognition from international maritime organization. Silvan van Heel PT. Pelindo IV, Makassar International regulations: ISO9001 Customs Safety Policies: ISPS code PSC Area for improvement on: Customs Port regulations Compliance

21. By national regulation Makassar container terminal could function as international Port, however it requires recognition from international maritime organization. Silvan van Heel PT. Pelindo IV, Makassar International regulations: ISO9001 Customs Safety Policies: ISPS code PSC Area for improvement on: Customs Port regulations Compliance

22. Until custom-clearance in Jakarta/Surabaya cargo, ships domestically Silvan van Heel PT. Pelindo IV, Makassar Identify cargo volume Maluku and Papua

23. Makassar is connected 16 ports in the region “East Indonesia” The aim is to consolidate international cargo in Makassar and directly ship to the Port of Singapore. Silvan van Heel PT. Pelindo IV, Makassar Attracting foreign vessels

24. Monthly Makassar has 1500 TEU Export and 500 TEU import. This is not yet satisfactory for shipping agents to service a vessel between Makassar and Singapore Silvan van Heel PT. Pelindo IV, Makassar Attracting foreign vessels Port Facilities 1000 TEU per week Custom-clearance Port Facilities 600-700 TEU per move Custom-clearance