DEVELOPMENT OF DRYPORTS IN INDONESIA A dryport is a port that handles cargo.

But in the practical sense a dryport meaning could be narrowed as an inland container terminal that has direct road, rail or other access to an adjacent sea port, and has export import facilities. The dryport should in fact accept the container as if the container has reached the seaport itself. Thus the owner of the goods inside the container can easily process the documents and the cargo at the said dryport as a one stop window. This is convenient for the owner. In a more grand scale, the existence of the dryport can increase the development of the export oriented regional economics. A seaport as the funnel for trade traffic has proven to be essential towards international trade originating in that said area. A dryport can also be considered in that same way. But the real question is can dryports really improve the economic level of the surrounding regions? Has there been any example of a dryport being the center of a manufacturing basis? Sadly the answer is that it is very difficult. Of course, in North America and Europe there are industries that rely on land transportation because of the vastness and the population distribution. The industries in Milan, Lyon, Detroit, for example rely on land transportation. But in Indonesia there are yet to be centers of industries far from a seashore. It is as easy to build a factory next to the shore as it is far inland. But we do this not because it is simple but because it is hard. If all the manufacturing is done near the shores, then the hinterlands will become deserted and underdeveloped.

REGULATORY AND INSTITUTIONAL ISSUES As said above, the dryport is a port. In this opinion no special treatment or regulation is necessary. As the seaport has a harbourmaster, the dryport has an administrator. Both are appointed by the Ministry of Transportation. The operator and owner of the dryport may be private, public state owned enterprise or a public private cooperation (concession based). The approval for the construction and operation of the dryport lays with the Ministry of Transportation. Where possible, the local government is involved from the beginning of the planning stage and include the dryport in their spatial planning (RTRW). The local governments are also urged to lead the land acquisition process. Other ministries such as the Ministry of Trade, Ministry of Public Works should also involve in the development of the dryport. Issues such as attraction of investors, construction of connecting road networks into the dryport, political support for the owners etc should be dealt with in a national scale, as this can be seen as a major national project with national impact and interests. To make this port the one stop window, not only handling of containers. The relevant authorities must open services at the dryport. These include the Customs ( Direktorat Jenderal Bea Cukai), Ministry of Finance and the Quarantine service (Badan Karantina Pertanian), Ministry of Agriculture. The inspections and processes are done internally by officials of those regulators. After the official offices have finish their processes, the container are then sealed to be opened only after arriving at the destinations. There are only few dryports in Indonesia, so no classification is necessary. The administration is chiefed by an echelon IV official, which is the lowest, because of the small amount of traffic involved. EXISTING AND FUTURE DRYPORTS

The following table is the number of container export and import from existing dryports (2008 numbers)

LOKASI DRY PORT IMPORT 45.000 34.000 7.000 8.000 12.000 20.000 8.000 12.000 146.000

Jumlah Peti Kemas (Teus) EXPORT 55.000 36.000 8.000 12.000 18.000 30.000 12.000 13.000 184.000 TOTAL 100.000 70.000 15.000 20.000 30.000 50.000 20.000 25.000 330.000 2015 6% / Thn 168.948 118.264 25.342 33.790 50.684 84.474 33.790 42.237 557.528 2020 5% / Thn 215.625 150.938 32.344 43.125 64.688 107.813 43.125 53.906 711.563 2025 4% / Thn 262.341 183.639 39.351 52.468 78.702 131.170 52.468 65.585 865.725

Cikarang Gede Bage Cibungur Cirebon Solo Surabaya Tonjong Cilegon Jumlah

The Surabaya, Cirebon and Cilegon dryports can be disputed as seaports due to the very short distance from the seaports. The Rambipuji dryport in East Java which exported cigar leaves has stopped operation at the moment because of the shortage of traffic. The Gedebage, Cibungur, Solo are rail based dryports while the rest are road based. The Cikarang Jababeka dryport is the largest and busiest dryport when it opens completely, with 200 hectare area. The facilities that need to be available are one stop services area, a bonded area, logistics area, maintenance area and supporting services area. These areas are necessary for the independent operation of the dryport, without which, there will be needed extra facilities outside the control of the dryport operator. Potential dryport locations may include Batam, Medan, Dumai, Yogyakarta and Makasar. Even if the dryports are just feeders to international seaports in other islands but the prospect of the one stop service for the exporters should be analyzed for future opportunities.

FUNCTION OF DRYPORT Since the dryport is to facilitate handling and transportation of containers, the infrastructure and services for transportation should be guaranteed. This means that the shortest time possible is needed to get from the dryport entrance to the seaport container yard. Together with the administrative process, this should take less than 24 hours. The whole dryport function should be evaluated from 3 aspects : a. Proximity to industry b. Integrated logistics solution c. One window administrative stop

The example above is for the Cikarang dryport, still a potpourri of services. The dryport itself should be in close contact with the seaport. As little handling as possible must be the goal. Thus, the dryport experience never ends at its exit gate, but it should be a streamline system, integrated with the connections, not just the first seaport but as an integrated international logistics system. Currently, the inland dryports are not considered in the bill of lading. They are considered inland transportation, separate from the main sea transit. This is not an Indonesian regulatory issue but more an international trade and commerce practice. Overseas international procedures are being evaluated but the answer to this problem has yet to be obtained. This is an example for export process from Gedebage dryport. As you can see, the stacking in the Jakarta Tanjung Priok Harbor is testimony that the just in time philosophy still has a lot to

be desired.

The loading time and cost for the Gedebage Dry port Rail Service until Tanjung Priok compared to direct truck transport by the owner from his premises in Bandung to Tanjung Priok are as follows :

The cost and travel time from the dryport has had significant pressure towards the amount of cargo going by the dryport as those going separately by themselves to the seaport. The market share for the Bandung Gedebage dryport is as follows :

Thus the potential for dryports will continue to increase, as the demand for container traffic will be more important than bulk cargo traffic. How this demand will be address must need more commitment from all sides. If the commitment can be reached then the demand can be served.