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Report No. 1124a-IND FILE COPYAppraisal of Tanjung PriokPort Project Indonesia
October 15, 1976
Transportation DivisionEast Asia & Pacific Region
FOR OFFICIAL USE ONLY
Document of the World Bank
This document has a restricted distribution and may be used by recipientsonly in the performance of their official duties. Its contents may nototherwise be disclosed without World Bank authorization.
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CURRENCY EQUIVALENTS
Currency Unit Rupiah (Rp)US$1 = Rp 415
Rp 1 = USJ0.24
Rp 1 million = US$2,410
WEIGHTS AND MEASURES
i meter (m) 2 3.28 feet (ft) 21 square meter (2) 10.76 square feet (f )1 cubic meter (m ) = 35.29 cubic feet (ft )1 kilometer (km) 2 = 0.62 miles (mi)1 square kilometer (km ) = 0.39 square miles (sq mi)1 hectare (ha) = 2.47 acres (ac)1 metric ton (m ton) = 1,000 kilograms (kg)
or 2,204 pounds (lb)
ABBREVIATIONS AND ACRONYMS
ADB - Asian Development Bank
BAPPENAS - National Planning CouncilBCE - Base Cost Estimate
BPP - Badan Pengusahaan Pelabuhan (Tanjung Priok Port Administration)cfs - container freight shedsDGH - Directorate General of HighwaysDGSC - Directorate General of Sea Communicationsdwt - deadweight tonsGDP - Gross Domestic Product
LWOST - Low Water Ordinary Spring TidesMOC - Ministry of Transport, Communications and TourismMOF - Ministry of Finance
MPW - Ministry of Public Works and PowerNDF - National Development FundPERUM - Perusahaan umum (independent authority)RLS - Regular Liner Service of Inter-Island Shipping FleetUKA - Usaha Karya (Labor Pool)UNDP - United Nations Development Programme
FISCAL YEAR
April 1 - March 31
FOR OFFICIAL USE ONLY
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
TABLE OF CONTENTS
Page No.
SUMMARY AND CONCLUSIONS ........... .. ...............
I. INTRODUCTION ........ ........................... . 1
II. BACKGROUND . ........................................ 1
A. Economic Setting ...... ........................ 1B. Transportation ................................ 2C. Transport Planning, Policy and Coordination ... 5
III. PORT FACILITIES, ORGANIZATION AND OPERATIONS .... ... 5
A. Existing Facilities ........................... 5B. Organization .................................. 6C. Operations .................................... 8
IV. THE PROJECT ........................................ 11
A. Capital Investment Program .................... 11B. The Project .................................. 11C. Project Execution .............................. 14D. Consulting Services ............. .............. 15E. Procurement and Disbursement ...... ............ 15F. Ecology ................................... 15
V. ECONOMIC EVALUATION . ............................... 16
A. General ....................................... 16B. Traffic Forecast ........... ................... 16C. Project Benefits and Risks ...... .............. 17D. Economic Return and Sensitivity Analysis .18
This report has been prepared by Messrs. F. Higginbottom (Engineer),R.H. Roberts (Economist), J. McCunniff (Financial Analyst, Consultant)and K.C. Rodley (Financial Analyst).
This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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Page No.
VI. FINANCIAL EVALUATION ............................... 19
A. General ....................................... 19B. Accounting and Costing Systems, Rates and
Charges ..................................... 19C. Asset Values ....... ........................... 19D. Financial Management and Staffing .... ......... 20E. Past Earnings and Financial Position .... ...... 20F. Future Earnings and Financial Position ........ 21G. Cash Position and Financial Plan .... .......... 23H. Auditing and Insurance ..... ................... 23
VII. AGREEMENTS REACHED AND RECOMMENDATION .... .......... 24
ANNEXES
1. Asian Development Bank Financed Project of 19722. Existing Facilities at Tanjung Priok3. Description of Ongoing Government Works in Basin III4. Detailed Description of the Bank-Financed Project5. Technical Assistance and Training Program6. Alternative Container Handling System Pending Completion of
the Container Stacking Area7. Traffic Forecast8. Details of Modification Required in the Accounting System9. Outline of Cost Finding Procedures Proposed10. Recommended Changes in the Tariff Structure11. Explanatory Notes on Balance Sheet for March 31, 1973;
December 31, 1973; and December 31, 197412. Assumptions Used in Financial Forecasts13. Plan of Action for BPP
TABLES
1. List of Operating Companies and Sheds Allocated2. Capital Investment Program 1976-833. Detailed Cost Estimates4. Contracts for Execution of Bank-Financed Project Works5. Construction Schedule6. Annual Estimated Project Expenditure7. Disbursement Schedule8. Traffic Projections 1976-859. Port Traffic 1970-7510. Economic Costs and Benefits11. Summary of Principal Port Tariffs12. Fixed Asset Values, Second Revaluation of 197313. Summary of Wage Increases Since 1973
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14. Income Accounts - Revenues, Expenses and Net Income 1972-82
15. Balance Sheet Data Actual 1972/73-7516. Balance Sheet Data - Estimated 1976-8217. Estimated Caph Flow Data 1976-8218. Summary Cash Flow Data; Financial Plans 1976-79; and 1976-82
CHARTS
1. Organization of the Directorate General of Sea Communications2. Organization of Tanjung Priok Administration
MAPS
12150 Indonesia - Ports and Port of Tanjung Priok12151 Basin III East Development
September 1976
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
SUMMARY AND CONCLUSIONS
i. Tanjung Priok, Indonesia's largest port, handles 30% of thecountry's general cargo trade, and is particularly important as a distri-bution point for imports of consumer and industrial goods for the West Javaarea and outlying islands. The Government has requested the Bank to financethe first phase development as proposed in the port master plan. The planwas prepared by consultants (Swan Wooster Engineering Co., Canada) at theGovernment's request, and financed by the Association under technical assis-tance credits. It proposes development in three phases; the first phase isexpected to handle increased traffic until 1983, when a further extension isforecast to be necessary. Technical assistance for management, operational,planning and financial improvements is also proposed.
ii. The Port Administration of Tanjung Priok (Badan Pengusahaan Pelabuhan(BPP)) is currently responsible to the Ports and Dredging Directorate of theDirectorate General of Sea Communications (DGSC) in the Ministry of Transport,Communications and Tourism (MOC). Reorganization within DGSC will establishan independent authority ["perusahaan umum" or Perum] for ports and dredging,responsible for ports served by the Regular Liner Service (RLS) fleet and adirectorate for other ports. Assisted by an earlier Asian Development Bank(ADB) financed project, BPP has improved the port since 1973, and is generallyefficient; but its organization is over-centralized and its financial relationswith the Government are unsatisfactory and would be revised under the project.BPP will be a part of the Perum but with exclusive responsibility for themanagement and operation of its assets; its operations will be reorganized toconform to proposed changes in port operating procedures.
iii, Licensed private operating companies and forwarding companiesundertake cargo handling operations, except for one unit operated by BPP.There are too many companies with widely varying efficiency, and berthsare not efficiently allocated among them; also Customs Department will notpermit movement of cargo from transit sheds for any reason until it hasbeen cleared, and their methods are slow. Consequently, cargo moves slowlyand productivity is poor. Changes in the operational procedures are pro-posed, to rationalize allocation of berths, sheds and warehouses among thecompanies and, if a current experiment is successful, to reduce the numberof companies; modern cargo handling methods will be introduced, and Customsprocedures revised.
iv. Following severe congestion in the port prior to and during 1973,the Government commenced construction of 920 m of general cargo, combinationand container berths in Basin III East. This construction is about 60% com-pleted, and is consistent with Phase I of the master plan on which the proj-ect is based. The proposed project includes the ongoing Government construc-tion in Basin III East and would provide in addition:
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(a) back up facilities, container handling and otherequipment in Basin III East;
(b) 545 m of new general cargo berths for the regionaltrade and mechanical handling equipment;
(c) improvements to the land access to the port;
(d) roads services and houses needed to replacethose to be demolished for the Phase II exten-sion; and
(e) consulting services and technical assistance.
V, The proposed project is estimated to cost US$79.3 million witha foreign exchange component of US$41.5 million equivalent. The proposedloan of PS$32 million equivalent would finance the estimated foreign exchangecosts of civil works, mechanical equipment and consulting services exceptthose for the ongoing Government construction. The Government would financethe foreign exchange cost of the ongoing work and the local currency costs ofthe project, including compensation to lessees of port land required for theproject; these costs are estimated to be about US$47.3 million.
vi. Civil works and mechanical equipment procurement contracts wouldbe awarded on the basis of international competitive bidding, except for theroads and services for housing. A 7-1/2% preference on civil works contractswould be granted to Indonesian firms and eligible joint-ventures in accordancewith Bank Group guidelines.
vii. Technical problems may delay full completion of the ongoing worksto October 1977, but it is expected that the Bank-financed works will bestarted in March 1977; it is expected to be completed by mid 1979.
viii. The proposed project would avoid the constraints on economicgrowth which a shortage of port capacity in Tanjung Priok would impose onWest Java and the other islands. Evaluated in terms of ship waiting-time avoided, this would yield a return of 18%. However, the full economicreturn is believed to be greater than this.
ix. BPP's earnings position has been generally satisfactory. Its abilityto finance port development is, however, severely restricted by liability forincome tax (45% of net income) and contributions to the National DevelopmentFund (NDF) (30.25% of net income). Capital expenditures have recently depletedcash resources to the extent that BPP has accumulated tax arrears amounting toRp 7,000 million (US$17.5 million) as of December 31, 1975. In addition, in1976 BPP has become liable for the payment of a tax equal to 10% of the writeup of fixed assets in service resulting from revaluation of assets as ofDecember 31, 1972, completed in 1973, but just recently approved by Government.This amounts to about Rp 3,368 million.
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x. During negotiations it was agreed that BPP would be permitted toearn a return of 5% in 1977 to 1980 inclusive and not less than 7% thereafterbefore providing for NDF contribution but after income tax and revaluationtax, the latter being spread over a four-year period beginning in 1977 forpurposes of calculating the return. The specified return would be achievableprovided additional revenues were obtained, as assumed in the projections, byadjustment to storage and wharfage charges and upward adjustment of rates,amounting to 10% in 1979 and 20% in 1980.
xi. Substantial inputs of government capital will be required toensure that BPP has adequate funds for its port expansion. These funds areexpected to total Rs 17.3 billion during the 1976-82 period and constitute25% of capital investment needs. Internally generated funds would provide19.5% of capital investment requirements in 1976-79 and almost 19% over theseven-year period 1976-82. This is acceptable; the BPP contribution wouldbe much higher were Government equity contributions considered a return ofinternally generated funds at least to the extent of BPP's contributions tothe NDF amounting to Rp 9.1 billion during the 1976-82 period.
xii. The proposed project provides a suitable basis for a Bank loanof US$32 million equivalent to the Government of Indonesia for a periodof 20 years, including a four-year grace period. BPP would assume a debtto the Government for a similar amount, for the same term, but at 12%interest.
September 1976
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
I. INTRODUCTION
1.01 The Government of Indonesia has asked the Bank to help in financingthe expansion of Tanjung Priok, Indonesia's largest port, [in order] to meetanticipated traffic growth and to provide adequate facilities for contain-erized cargo. The proposed project, which forms part of the Government'sSecond Five-Year Development Plan (Repelita II), 1975-79, is based on Phase Iof a master plan study prepared by consultants (Swan Wooster Engineering Co. -Canada) in the period June, 1974 to July, 1975; it would be partially financedby a Bank loan of US$32 million equivalent. The loan would be made to theGovernment for a term of 20 years, including a four-year grace period. Whenestablished as a part of the Perum in DGSC (para 3.04), Tanjung Priok PortAdministration would assume a debt to the Government of US$32 million equiv-alent for a similar term at an interest rate of 12% p.a., under a subsidiaryagreement satisfactory to the Bank (para 4.06).
1.02 The Bank Group's previous assistance to the transport sector hasamounted to US$381 million, and includes three credits (154-IND, 260-IND and388-IND) and one loan (1236-IND) for highway projects, one loan for railways(1005-IND), one credit (318-IND) and one loan (1250-IND) for inter-islandshipping as well as a fertilizer distribution project (Loan 1139-IND). Nomajor difficulties have arisen but progress on the first three of theseprojects has been slow.
1.03 This project, which will aim to improve cargo handling productivityand throughput, is based on the consultant's study, data supplied by theGovernment and the findings of an appraisal mission composed ofMessrs. F. Higginbottom (engineer), J. McCunniff (consultant, financialanalyst) and R. Roberts (economist) which visited Indonesia in November1975.
II. BACKGROUND
A. Economic Setting
2.01 The Indonesian archipelago comprises thousands of islands spreadout along 5,000 km of the equator in a band about 2,000 km wide. However,five large land masses (the islands of Kalimantan, Sumatera, Irian Jaya,Sulawesi and Java) accgunt for more than 92% of the country's total landarea of 1.9 million km . About two-thirds of Indonesia's population of130 million (1975 estimate) is concentrated on the island of Java which
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covers only 7% of the total land area and is o e of the most densely popu-
lated regions in the world (625 persons per km ). The average populationdensity in the rest of Indonesia is much lower than Java and the Govern-
ment is encouraging migration from Java to other islands, but with onlylimited success. Urbanization is accelerating and the population of thecapital, Jakarta, is about 5 million.
2.02 Gross Domestic Product (GDP) was the equivalent of about US$16.3billion in 1973 or about US$130 per capita. The economy grew during the
First Five-Year Plan and in 1975 at over 7% p.a. The Second Five-Year Planprojects continuation of the growth pattern from the previous plan period but
with greater emphasis on industrial expansion, particularly in basic industry;
transport is projected to grow at a rate of 10% p.a. With the increase inoil prices, additional resources have become available to the Governmentand have already been committed to expanding investment. Indonesia's exportearnings are expected to rise further from US$4.4 billion in 1974 to US$10.5billion in 1980 and to provide the necessary foreign exchange and savings for
additional increases in the rate of investment.
B. Transportation
(a) General
2.03 Indonesia makes significant use of all modes of transport. Javahas extensive road and rail systems which account for 33% and 70% respec-tively, of the total networks in the country. Roads provide the basic links
within the individual islands outside Java, though the density of these net-
works is much lower. There are also about 450 km of petroleum pipelines in
operation or under construction in South-Central Java and a few gas pipelinesin Java and Sumatera. Marine transport, which already plays a vital role in
freight and passenger movements between the islands is expected to grow withthe development of the other islands. Air transport is developing rapidly,
but almost exclusively for passenger use. The largest single item in freight
transport, measured in ton-km, is the movement of petroleum and its productsby domestic shipping; without this traffic, road and sea traffic are roughlyequal and each is about three times rail traffic. More than half of totalpassenger-km is produced by road transport, with rail contributing the second
largest share and the balance by sea.
2.04 The contribution of transport to GDP virtually stagnated for mostof the 1960's but grew nearly 11% p.a. in constant prices over the FirstPlan period as the economy recovered. The Government's policy in the FirstFive-Year Plan emphasized rehabilitation of transport facilities and the
condition of infrastructure and the transport fleet has improved markedly
as a result. In addition, some fleet expansion took place, particularly in
road transport and aviation. The primary aim of the Government's SecondFive-Year Plan in the transport sector is to create substantial capacityincreases both by additional investment and by improved productivity, throughcompletion of unfinished rehabilitation work and further strengthening ofsectoral institutions and organizations. Over the Second Plan period,
investments for transport in the public sector (assuming continuation of
development expenditures at increased levels) and by the private sector
are estimated at about Rp 1,800 billion (US$4.3 billion, in 1973 prices)roughly 17% of total investments; about 56% of this will flow through the
public sector under various central and local governments' development
budgets with the remainder being financed privately, particularly for the
purchase of road and other transport vehicles.
(b) Highways
2.05 The extra-urban public highway network totals 86,264 km. The
roads are classified as "national" (10,628 km), "provincial" (24,466 km) and
"district" (kabupaten) (51,170 km), indicating their relative importance and
the basis for defining administrative, financial and executive procedures
associated with construction and maintenance. In addition to the public
highway network, agricultural estates and oil companies construct and main-
tain their own roads.
(c) Railways
2.06 Railways are confined (with one minor exception in Madura) to twoislands: about 4,700 km on Java and 2,000 km on Sumatera. The railways,
which were built during the 70 years prior to World War II to move primary
commodities to foreign markets, suffered with declining exports in the1950s and 1960s and, as with most public infrastructure in Indonesia,
they were allowed to deteriorate. Limited rehabilitation took place
during the First Five-Year Plan and freight traffic recovered initially,
at about 7% p.a. in ton-km, but has since shown little growth; while
passenger traffic after many years of decline is starting to show an up-
ward trend. Due to long neglect in replacing over-age assets and to poor
maintenance facilities, railway operations have remained deficient. The
railway has formulated a comprehensive program of modernization and re-
habilitation which, coupled with technical assistance, formed the basis
of a Bank railway project (Loan 1005-IND), presently being implemented.
(d) Aviation
2.07 In 1972 about 95% of domestic civil air traffic movement in
Indonesia passed through 27 airports (about one-third of these movements
through Jakarta). Recent improvements were concentrated in these airports
to permit use by modern aircraft, which could handle the rapid rise in
passenger traffic (nearly three times between 1968-72) most efficiently.As a result, 19 airports can now accept passenger jets as against only 3
at the start of the First Plan. While landing fields have been improved,
substantial deficiencies persist in aeronautic communications, naviga-
tional aids and air traffic control. In line with the rapid rise in
traffic, the capacity of the civil aviation fleet has been expanded and
the types of aircraft diversified. Most of the needs in the aviation sub-
sector are for equipment for which bilateral financing is likely to be
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available. The Government is studying the construction of a new inter-national airport for Jakarta. During the Second Plan, the Governmentalso intends to promote the construction of landing fields in the remotedistricts.
(e) Shipping
2.08 In 1974, the Indonesian shipping fleet, excluding sailing craft,consisted of about 1,055 registered vessels totalling about 1.2 milliondeadweight tons (dwt). Of this, 57 vessels, totalling about 0.5 milliondwt, consisted of ocean-going general cargo ships, 336 vessels (0.4 milliondwt) consisted of inter-island registered ships, each over 500 dwt, whilethe remainder was composed of tankers (0.1 million dwt) and small vessels.Of the inter-island fleet, 200 ships (220,000 dwt) were licensed to oper-ate in the RLS. With IDA assistance (Credit 318-IND), the Government isproviding funds for the rehabilitation and improvement of the RLS fleet.A second shipping Loan 1250-IND has been made and Norway and Japan have alsomade loans which, together, will provide additional funds to improve and ex-pand the fleet to meet the rapidly rising demand for shipping services; theproject also emphasizes safety and improvement of fleet operations on mainRLS-routes through the introduction of palletization of general cargo traffic.
(f) Ports
2.09 Indonesia has about 300 ports scattered over the archipelago, butabout 70% of traffic volume is concentrated in ten of them. The major portsare Tanjung Priok and Surabaya in Java; Belawan, Palembang and Panjang inSumatera; Banjarmasin and Balikpapan in Kalimantan; and Ujung Pandang(Makasar) in Sulawesi. Tanjung Priok, the largest general cargo port, servesthe Jakarta metropolitan area and West Java, and handles about 30% of thecountry's general cargo trade.
2.10 Studies of short-term port requirements have been completed byconsultants, NEDECO (Netherlands), and minor works to improve operationsin some of the main ports have been undertaken with assistance from the ADB,the Netherlands and Japan. Preparation of master plans for the ports ofSurabaya, Belawan and Panjang have been completed by consultants, Sir WilliamHalcrow & Partners (UK), financed by UNDP with ADB as executing agency. Aproject for expansion of Surabaya and Belawan is under preparation with ADBfinancing. A master plan for development of Palembang is also in hand byconsultants (Ernst Fraenkel Associates, USA).
2.11 In 1973, the need to import large volumes of rice and wheat re-sulted in severe congestion in Tanjung Priok which restricted the country'sability to meet the emergency created by rice crop failures, and limitedthe import of steel and cement for important development projects. Short-term measures, including some rehabilitation of berth aprons and sheds,which were subsequently adopted under an ADB-financed project (Annex 1),substantially improved the port's operations and, together with a level-ing out in the traffic growth, greatly reduced ship-waiting time. To
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meet the evident longer-term need for development of Tanjung Priok, theGovernment initiated a master plan study of the port by IDA-financed consult-ants (Credits 216-IND and 275-IND), which was completed in September 1975.However, following the experiences in 1973, the Government considered the needfor additional port capacity so acute that, in June 1974, it commenced construc-tion of the Basin III East berths, which form a part of the present project(para 4.02), and are consistent with the master plan.
C. Transport Planning, Policy and Coordination
2.12 Responsibility for planning and policy formulation in the trans-port sector is divided at the national level between two ministries, theMinistry of Public Works and Power (MPW) for roads, and the Ministry ofTransport, Communications and Tourism (bOC) for other modes. The Ministriesformulate investment proposals for each mode which are submitted to theNational Planning Council (BAPPENAS) for review. The Government intends toemploy one expatriate expert in MOC, financed under Technical AssistanceCredit (275-IND), to help it in reviewing these investment proposals.
2.13 Modal planning is hindered by a lack of trained staff and by thelimited and irregular flow of data. Nevertheless, planning of highways inthe Directorate General of Highways (DGH) has been greatly strengthened inrecent years with the assistance of a UNDP highways planning advisory team,and will receive further significant assistance under a proposed Bank loan.Railway planning will be improved under the current Bank loan for the rail-ways, while strengthening of the port planning function is proposed underthe present project (paras 3.05, 4.02 (f) and Annex 5). The Government hasinitiated training programs for transport planning staff and is pursuingseveral means to improve the availability of information, among them the pro-vision of an expert financed from Technical Assistance Credit (275-IND) towork with MOC on data problems. The training of Indonesian staff as well asimprovements in modal planning and data gathering will take time and it willbe some years before these essential prerequisites for improved transportcoordination are available.
III. PORT FACILITIES, ORGANIZATION AND OPERATIONS
A. Existing Facilities (Map 12150)
3.01 Currently Tanjung Priok has 3,250 m of berths 1/ for the deepseatrade in Basins I (East), II and III, which have 8 m 2/ to 10 m depth along-side (10,000 - 20,000 dwt ships); and 2,100 m of berths for the regional and
1/ The term berth is used to denote the water frontage served by atransit shed; more than one ship may often be served on a "berth"frontage.
2/ All water depths given below Low Water Ordinary Spring Tide (LWOST).
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inter-island trade in Basin I West Perahu and Nusantara basins, with 8 mand 4.5 m depth alongside respectively (10,000 and 2,000 dwt ships). Usableberthing space is somewhat less than the total available, due to dispositionof the transit sheds. Two berths in the deepsea harbor are restricted tothe handling of bulk cement and fertilizer. Transit sheds (20 in the deep-sea harbor and 15 in the regional harbor) are satisfactory, and there areample warehousing and open storage areas in both harbors. A separate oilbasin, with 11 m depth (45,000 dwt ships) provides, in addition to fouroil berths, a berth for bulk wheat imports.
3.02 All the basins are adequately protected by two breakwaters, withaccess from seawards through the 11 m deep West approach leading to theNusantara channel (6 m deep) and the east-west channel (11 m deep) servingBasins I, II and III and the Oil basin. A new east approach channel is beingdredged. Maximum tide is 1.4 m above LWOST. Maintenance dredging require-ments are not excessive. While roads inside the port are generally satis-factory, land access to the port will be improved (para 4.02 (c)). Railaccess is available, but little used except for petroleum products and fer-tilizer traffic. There are sufficient tugs and floating craft available, butmechanical equipment and pallets for handling general cargo are inadequate.Details are given in Annex 2.
B. Organization
Government Organization for Ports
3.03 The Port Administration of Tanjung Priok (Baden PengusahaanPelabuhan (BPP)) is presently a department of the Directorate of Portsand Dredging in the Directorate General of Sea Communications (DGSC) underthe MOC. DGSC's overall responsibilities and organization are shown inChart 1.
3.04 The Government now proposes to establish a "perusahaan umum" (Perum),an independent authority under Law 19 of 1960 to control the Borrowers portand dredging activities. It will be responsible for all such activities inthe country's regional administrative areas except that the number of portsfor which it is responsible will be limited to those visited by RLS ships;for control of the remaining ports, a port directorate will be created withinthe MOC. Both the Perum and the directorate will be responsible to the DGSC.It is expected to be operative by June 30, 1978. The proposed reorganizationwill permit greater emphasis on the planning of future port developmentswhich, as previously noted, is inadequate.
3.05 A number of studies and master plans for development of variousmajor and minor ports has been made, as previously noted, but little has beendone to improve minor ports, although the need for such improvement is oneof the reasons for the excessive time the inter-island ships presently spendin port. It was agreed during negotiations that the proposed ports director-ate will: (i) establish an adequately staffed port planning organization,(ii) update and complete the inventory of facilities at all existing ports forwhich it is responsible and (iii) undertake a survey of those ports served by
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the RLS which would recommend improvements necessary to expedite shipturnaround time, and prepare an outline of the work required. Technicalassistance for these items is included in the proposed project (para 4.02 (f)and Annex 5).
Tanjung Priok Port (BPP)
3.06 BPP is headed by a Port Administrator and has a Secretariatcovering administration, legal and personnel matters, a planning andproject unit, two security units and six operating divisions - traffic,service, pilotage, finance, dredging and technical - which are in turnorganized into functional units. Total personnel is about 3,550 of whichsome 2,200 are maintenance crews or security guards. Details are shownin Chart 2. A separate organization, Usaha Karya (UKA), controlled byBPP, is responsible for registration and allocation of cargo-handlinglabor to operating companies (para 3.13); it is financed by contributionsfrom the operating companies, on the basis of daily labor provided.
3.07 BPP has markedly improved operating conditions in the port since1973 with the aid of the ADB-financed project previously referred to, and is,in general, an efficient organization, albeit somewhat overstaffed. It lacksskilled tradesmen and equipment operators; training to correct this is in-cluded in the project (para 4.02 (f) and Annex 5). BPP's main problems arethat its financial relations with Government are unsatisfactory (para 3.08),and its current methods of controlling operations are over-centralized(para 3.09). These matters and other minor improvements to the organizationare amplified below.
3.08 BPP cannot borrow money in its own name, and all funds for capitalimprovements and additions are channelled through the MOC's budget. There aregenerally no budgetary carry-over arrangements from year to year; however,this has recently been arranged for the ongoing work in Basin III. Funds forcapital works are made available to the port without interest or obligationto repay, including the proceeds of international loans such as the ADBloan of 1972. BPP will become part of the overall Perum to be establishedfor ports (para 3.04) but will have exclusive responsibility for the manage-ment and operation of its assets, including procurement, for the selection ofits officers and staff within the approved establishment, and for the plan-ning and implementation of its future development, subject only to a reason-able degree of supervision by the Perum and approval of its budgets. BPPwill have timely access to sufficient funds to carry out its day-to-dayoperation and its development programs and would be subject to audit (para6.19). During negotiations, these changes in BPP's legal status were dis-cussed and agreed.
3.09 BPP's arrangements for control of day-to-day cargo handling opera-tions are over-centralized, as are arrangements for maintenance of the equip-ment and facilities employed therein. Both operational and maintenancedepartments should be restructured in line with the proposed reorganizationof the operating companies (para 3.16) and section heads given greater day-to-day decision-making authority, including the procurement and storage of
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spare parts, within agreed policy and budget restraints. Other changes which
are considered necessary for improving BPP's overall efficiency are: (i) thepresent planning and project bureau and the maintenance department should beseparated; at present, they are headed by the same officer who is too cir-
cunmscribed by the day-to-day demands of the maintenance function to be able tofill the planning role satisfactorily; the planning and project bureau shouldbe strengthened; and (ii) the Port Administrator should be given authority todispose of scrap material by auction, subject only to approval of the Ministerof Transport, Communications and Tourism of the Borrower. Current proceduresare time consuming, so that scrap material remains in the port area too long
and takes up valuable space. These recommended changes were discussed andagreed during negotiations and will be timed to coincide with the proposedchanges in operating procedures (para 3.16).
Customs Department
3.10 The Customs Department of the MOF at Tanjung Priok is broadly
organized in three sections: (i) documents and collection, (ii) exami-nation and (iii) administration. Relations with BPP are good and Customshave demonstrated a readiness to cooperate in arranging for examinationsin specific areas and permitting movement to bonded warehouses. Customsprocedures do, however, undoubtedly contribute to slow cargo movementbecause of (i) the out-dated customs code, which is being reviewed byspecialists financed by the International Monetary Fund; (ii) the cumber-some procedures, and number of Customs officers involved in assessingdues and clearing consignees papers; and (iii) the inability to movegoods from the transit sheds without Customs authority, since the mainexamination of goods takes place in the transit sheds and there is nocustoms fence around some areas.
3.11 Rectification of the physical problems which contribute to slowcargo movement are further discussed in para 3.16. As regards the exces-sive time required by Customs to clear goods and consignees' papers, astudy to recommend a solution is proposed under the technical assistancepart of the project (para 4.02 (f) and Annex 5) and this, together with theimplementation of improvements, satisfactory to the Borrower and the Bank,based on the study's recommendations, was agreed during negotiations.
C. Operations
3.12 BPP is directly responsible for all shipping movements andallocation of ships' berths; it also has direct knowledge of all cargomovement through its officers stationed on the quays and in the transitsheds and warehouses; adequate records are maintained by its trafficdivision.
3.13 Physical movement of cargo from the ship's hold to transitshed, open storage, or for direct delivery 1/, is undertaken by 21 private
1/ Direct delivery of break bulk general cargo (small parcels) is notpermitted by Customs.
operating companies (which also function as agents for shipping companies),licensed by DGSC, which are allocated transit sheds, or a part thereof
by BPP, and Unit Usaha, 1/ operated by BPP. A list of the operating com-panies and shed allocation is at Table 1. All movements of cargo fromtransit sheds and open storage, whether for delivery to consignees or forfurther storage in warehouses is performed by forwarding companies (whichalso function as Customs agents); some of these companies are also licensedby DGSC to operate warehouses and open storage areas. Labor is obtained fromthe pool operated by UKA.
3.14 Each operating gang comprises 45 men, divided equally betweenhandling cargo from ship to quay apron, placing and stacking it in shedor open storage and loading it from shed or storage for delivery to con-signee; one gang is engaged for each ship's hold being operated. Onaverage about 7,000 men are employed daily of which about 5,000 are inthe first shift from 0800 hrs to 2000 hrs and the balance in a secondeight hour shift available at the ship's option. There is ample laborto increase either shift if necessary.
3.15 The cargo handling system is sound in principle and is operated inmany ports, but for many reasons movement of cargo is slow and labor produc-tivity poor (about 5.7 tons/gang hour for break bulk cargo). There are toomany operating companies, which leads to inefficiencies. Not all of theberths allocated to a specific operating company are adjacent (Table 1) and,although BPP can require an operating company (ship's agent), whose allottedberths are all occupied, to place a ship at another company's berth, there hasto be agreement between the companies, a procedure which is time consumingand not always used. Goods are stored in the transit sheds for excessiveperiods, due to Customs regulations and BPP's tariff policies (para 6.04).The requirement that all movement from transit sheds be undertaken by theforwarding companies rather than by the operating companies also handicapsthe movement of cargo. Lastly, insufficient use is made of mechanical equip-ment and modern operating procedures, e.g., palletization, due in part, tothe resistance of port labor to changes in traditional methods.
3.16 To achieve required improvements in operating procedures itis proposed that:
(a) the port shall be divided into operational areasfor cargo-handling operations, as may be agreedbetween the Borrower, Bank, and BPP, each to includethe transit sheds and warehouses within its limitsand be enclosed by a Customs fence with controlgate. Each area would be a separate Customs area.Subject to agreement as noted, areas might be desig-nated as follows: (i) Nusantara basin area, (ii)West side of Basin I bounded by P.N. Dok, the Perahubasin and the Entrepot canal, (iii) the pier between
1/ Unit Usaha has been set up under BPP to operate sheds, as a checkon the performance of other operating companies.
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the Perahu basin and the Entrepot canal, (iii) the pierbetween Basins I and II, (iv) the pier between Basins IIand III, and (v) in Basin III East (a) general cargo berthsand (b) container cargo operations;
(b) within each agreed area unrestricted movement betweentransit sheds and warehouses will be permitted for allcargo remaining in the sheds beyond the free period,subject to notification to, but not permission of,Customs;
(c) sheds allocated to operating companies on each area orpier shall be arranged so that each company's shedsshall, to the extent possible, be adjacent. Except asmay otherwise be agreed such arrangement shall be com-pleted by end 1978. Further, the amalgamation of oper-ating companies currently being arranged in the Nusan-tara basin area, if successful, shall be applied asspeedily as possible to the remaining areas of the port;
(d) the warehouses in the Perahu basin area shall consti-tute a separate storage area for the long-term storageof such goods as BPP shall designate; with movementthereto by the forwarding companies after obtainingpermission of Customs;
(e) delivery to all consignees from all areas will be bythe forwarding company of consignee's choice, as atpresent following Customs clearance; and
(f) in licensing the operating companies or newly formedassociations of operating companies BPP shall requirethem to improve productivity by increased use ofmechanical equipment, with palletization of cargo inthe ships' hold, on the quay, in the transit sheds oropen storage areas, and in subsequent transfers to ware-houses.
Some of the foregoing proposals will not be easy to implement because theproposed liberalization of cargo movement would involve the forwarding com-panies, as well as BPP and Customs. Nevertheless, it is expected such areorganization would speed the movement of cargo and increase productivityabout 40% by 1985, following the training of cargo handling labor, for whichtechnical assistance is provided (para 4.02 (f) and Annex 5). During nego-tiations an agreed Plan of Action to carry out the above proposals was dis-cussed and agreed with the Government (Annex 13).
3.17 A team of specialists from the port of Amsterdam, financed by theNetherlands Government, has worked with BPP since 1973 to advise it on im-provements in its operational procedures and organization. The foregoing
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proposals are consistent with those made by the Amsterdam team. The team'sfifth progress report summarizes additional minor changes in day-to-dayoperations and organization, which are also important. A total of 150 pro-posed improvements spread over 15 operational and management disciplines havebeen made on which BPP's position is as follows:
Fully implemented 43
In course of implementation 45
Mixed solution implemented 17
Agreed but not yet implemented 43
Rejected 2
150
During negotiations, it was further agreed that the Amsterdam team's propo-sals, agreed by BPP, but not included in the recommendations in para 3.16should be implemented not later than 24 months after the effective date ofthe loan.
IV. THE PROJECT
A. Capital Investment Program
4.01 The port's capital investment program for the period 1976-83 totalsabout Rp 85 billion (US$205 million) (Table 2). It comprises Phase I of themaster plan, including ongoing construction in Basin III East, which is theproposed project, expenditures on Phase II of the master plan, expected tocommence in 1979 (Map 12150), continuing expenditures on the ADB-financedimprovements commenced in 1972 and scheduled for completion in early 1977, andother minor capital works. The timing and content of Phase II is closelylinked to the rate of development of containerization of break bulk generalcargo; if its development is slower than expected, Phase II may have to beadvanced, and would contain greater provision for break bulk and less forcontainerized, general cargo.
B. The Project
4.02 The project consists of Phase I of the master plan and includes(i) the berths in Basin III East, being constructed by the Government at itsown cost; and (ii) the Bank-financed additional facilities for these berthsand other agreed developments proposed in Phase I, required to meet trafficrequirements to about 1983. More specifically, the project consists of:
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(a) Basin III East
(i) completion of the 220 m container berth,180 m combination berth, and 520 m generalcargo berths under construction by theGovernment;
(ii) three transit sheds, open storage areas, accessroad, paving, services and necessary ancillaryworks behind the general cargo berths;
(iii) paving of about 6 ha on and behind the containerand combination berths together with necessaryservices and ancillary works; and
(iv) two 40-ton container cranes, specialized mobilecontainer handling equipment and mechanicalgeneral cargo handling equipment.
(b) The Regional Harbor (Perahu Basin)
(i) construction of 545 m of new berths with transitsheds, services, access road and ancillary works;and
(ii) provision of mechanical general cargo handlingequipment.
(c) Land Access Improvements
(i) improvements to the main external access road tothe port and entrance gates; and
(ii) new access roads in the port on the piers betweenBasins I and II, and Basins II and III.
(d) Construction of about 500 houses together with necessaryroads and services on land to be allocated by JakartaCity Council to replace port workers' houses, which haveto be demolished under the Phase II of the master plan.
(e) Engineering consultant services for (i) design and super-vision of the above items except item (a) (i) and provi-sion of general cargo mechanical equipment, and (ii)design only, of further improvements to the externalaccess road proposed under Phase II of the master plan.
(f) Technical assistance and training for accounting, labor,management, planning and customs procedures.
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(g) A study of the distribution methods to be adopted by the
Krakatau Steel Mill.
A detailed description of the Government-financed part of the project is
given in Annex 3, of the Bank-financed part in Annex 4, with details of
the technical assistance and training program in Annex 5. Item (g) has
been included on a request by the Government, approved by the Bank.
4.03 The total estimated project cost is Rp 32,915 million (US$79.3million equivalent); of which the Government will finance all local costs,
including lease acquisition and compensation, amounting to Rp 15,675 mil-
lion (US$37.8 million equivalent) and the foreign exchange cost of the on-
going construction, item (a)(i) of para 4.02, amounting to Rp 3,960 million
(US$9.5 million equivalent). The proposed Bank loan of US$32 million equiv-
alent (Rp 13,280 million) would finance the foreign exchange cost of the
Bank-financed part of the project.
4.04 Details of the cost estimates are given in Table 3 and are
summarized below:
% ofTotal Costof Bank-
Rupiah Million US$ Thousands FinancedLocal Foreign Total Local Foreign Total Works
A. Civil Works 4,045 3,631 7,676 9,750 8,750 18,500 38
B. Mechanical Equipment 65 3,913 3,978 160 9,430 9,590 20
C. Technical Assistanceand Training 111 622 733 270 1,500 1,770 3
D. Engineering ConsultingServices 336 976 1,312 800 2,350 3,150 6
E. Base Cost Estimate (BCE) 4,557 9,142 13,699 10,980 22,030 33,010 -F. Physical Contingencies 801 1,108 1,909 1,930 2,670 4,600 10
(15% BCE)G. Price Contingencies 1,452 3,030 4,482 3,500 7,300 10,800 23
(about 33% BCE) _
Total Bank-FinancedWorks 6,810 13,280 20,090 16,410 32,000 48,410 100
H. Tax on above item A 290 - 290 700 - 700
I. Lease Acquisitionand Compensation 830 - 830 2,000 - 2,000
J. Ongoing GovernmentWorks in Basin IIIEast 5,245 3,960 9,205 12,640 9,550 22,190
K. Housing Land Acquisitionand House Construction 2,500 - 2,500 6,000 - 6,000
TOTAL 15,675 17,240 32,915 37,750 41,550 79,300
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4.05 The cost estimates for civil works are based on preliminary designsand unit prices for similar ongoing works in Indonesia, and those for mecha-nical equipment on recent purchases, both at mid-1975 prices; they are con-sidered adequate. Physical contingencies are equivalent to 15% BCE, andprice contingencies have been calculated over the period from mid-1975 tocompletion of construction, on the basis of 14% of cost increase in 1975, 13%in 1976 and 12% in 1978 and 1979 for foreign exchange.
4.06 The proposed loan would be made to the Government and, until thePerum is established, the Government would transfer the proceeds of the pro-posed loan to BPP under the budgetary procedures without any charge; whenthe Perum is set up, BPP will assume as debt, the amount used out of theBank loan until that time, as well as the balance to be made available toBPP thereafter. In order to spell out the on-lending terms, a subsidiaryloan agreement, satisfactory to the Bank, would then be signed which wouldinclude 12% interest p.a. and the same repayment terms as the Bank loan.Submission of a draft of this subsidiary loan agreement which would beentered into by the Government and the Perum and details of other arrange-ments satisfactory to the Bank is a condition of loan effectiveness.
C. Project Execution
4.07 The Bank-financed part of the project would be executed by BPP withthe assistance of consultants (para 4.10). An adequately staffed projectunit with full responsibility for executing the project and with an adequatebudget is being established in BPP.
4.08 The ongoing Government-financed civil works in Basin III are beingundertaken by a local contractor under BPP's direction, with the assistanceof consultants. Problems have arisen during construction (Annex 3) which ithas been estimated will delay completion of the works by ten months, toOctober 1977. However, sufficient work is expected to be completed to enablethe Bank-financed work to commence by March 1977, and to be completed bymid 1979.
4.09 Additional land, which is essential for completion of the Basin IIIgeneral cargo berths and the access road to the container berth (Map 12151),is owned by the port but leased by six private port-related businesses andthe Customs Department. Alternative land is available in the port area toenable the lessees to be moved, and they will have to be relocated and appro-priate compensation paid. Arrangements have been made which will ensure theavailability of the required land for the project by January 1977.
4.10 Land at the North end of Basin III East (Map 12151), required forthe container stacking area, also owned by the port, is leased by two autoassembly companies. The companies have agreed to move but are requestinghigh compensation for relocating. This land would have to be available aboutSeptember 1977 if the full container stacking area behind the wharf is to becompleted under the Basin III civil works contract. It is apparent this willnot be the case; however, a 90 m wide apron behind the container berth can becompleted without using any of the leased land and the container cranes canbe erected by September 1977; with these and the apron available, operations
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can commence. Containers would be transported by road chassis and tractors
to existing inland container freight stations at Cakung and near the Nusantarabasin (Annex 6). The works required for the full container stacking area be-hind the berth, noted as a container option on Map 12151, would be undertaken
in about 1979 when work on the second phase of construction is expected tostart, and the required land is expected to be available.
D. Consulting Services
4.11 Swan Wooster Engineering Co. (Canada), has been appointed by BPPfor final design and supervision of the Bank-financed project items except
for mobile container and general cargo mechanical handling equipmaent, forwhich BPP will prepare bidding documents, subject to approval by the Bank.About 200 man-months of specialist consultant services will also be providedto carry out the technical assistance and training program (Annex 5) at an
estimated cost of about US$1.3 million.
E. Procurement and Disbursement
4.12 The Bank-financed project items would be executed under four civilworks contracts and three mechanical equipment procurement contracts (Table4). Indonesian firms and eligible joint-ventures would be given a 7-1/2%preference on civil works contracts in accordance with Bank Group guidelines.All contracts except that for housing services but including supply of mate-rials therefor will be awarded on the basis of international competitivebidding in accordance with Bank Group guidelines. The contract for procure-ment of the container cranes was let prior to approval of the proposed loan,following international competitive bidding in accordance with the guidelines,and will be followed closely by that for mobile container handling equipment.
4.13 The works are expected to be completed by mid-1979 (Table 5) assum-ing effectiveness of the proposed loan by February 1977. Disbursement for the
project civil works would be on the basis of 50% of total costs, representingthe estimated foreign exchange component. For technical assistance, training,procurement of mechanical equipment and on account of non-Indonesian consult-ants, disbursements will be made to meet 100% of the foreign exchange costs.On account of Indonesian consultants disbursements will be on the basis of
80% of total expenditures. Annual estimated project expendituire is shown inTable 6, and the estimated schedule of dLshursements for the proposed Bank
loan in Table 7. Retroactive financing, amounting to about US$750,000, may berequired for part of the container crane contract and for consulting services.
F. Ecology
4.14 None of the proposed works will affect the existing ecologyof the harbor, and the proposed improvement to the external access road,designed following an assessment of urban and port traffic, was discussedand agreed with the Jakarta planning organization.
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V. ECONOMIC EVALUATION
A. General
5.01 As previously noted, Tanjung Priok is the country's largest general
cargo port, not only serving West Java but also performing an important dis-
tribution function for imported consumer and industrial goods destined for other
islands of the archipelago. Failure to carry through the proposed project orsome acceptable alternative would impose a heavy cost and, ultimately, an upper
limit on the growth of external trade and inter-island traffic. This, in turn,would have a substantial impact on the prosperity of the Jakarta metropolitan
area and on the development of the other islands, and would also threaten
imported food and other essential supplies destined for West Java. The full
economic costs of such a course are incalculable, but certainly very great.As a conservative measure of these economic costs, the evaluation uses the
additional ship-waiting time which would result in the absence of the proposed
project. The saving in ship waiting time which is used is that accruing to
the Indonesian economy, although, of course, the benefits of avoiding a res-
traint on economic growth resulting from inadequate port capacity would all
accrue to Indonesia.
5.02 In comparing the situation with and without the project it isassumed in both cases that the present exclusive berthing practices will bechanged and ships will be berthed, in future, at the first available berth;
it is also assumed in both cases that reorganization and training will beundertaken, which are expected to increase cargo handling productivity by
40% over the existing rate, by 1985.
5.03 The proposed project would provide facilities for the efficienthandling of an increasing volume of containerized general cargo, thereby
reducing the turnaround time of container ships, and encouraging the use
of larger and more efficient ships (para 5.14); these facilities would besubstantially lower in capital cost than equivalent break bulk facilities(para 5.13).
B. Traffic Forecast
5.04 The traffic forecast is based on the underlying assumptions regard-
ing economic growth of Repelita II, the Government's long-term plan for theperiod 1975-80, and on forecast growth in population and personal income in
West Java and the metropolitan Jakarta area (Annex 7). Total general cargo
traffic is expected to be about 7.0 million tons in 1985 an increase of some
3.4 million tons from 1975.
5.05 General cargo imports are forecast to increase at an average rateof 3.9% over the period 1975-85 (Table 8), a rate which reflects declining
imports of steel products and rice due to the substitution, from 1978, ofdomestic manufacture of steel and to progress towards self-sufficiency inrice. It is assumed that growth in imports of other general cargo, which
levelled out in 1974 and 1975, will be resumed by the end of 1976 as worldtrade recovers from recession.
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5.06 The forecast of containerized general cargo imports is based on
the known plans of shipping companies, and experience at other major ports
in the region regarding the growth of containerization. The proportion of
1985 general cargo imports which is forecast to be containerized is substan-
tially less than the proportion which is potentially containerizable.
5.07 Inter-island general cargo in Tanjung Priok, both inbound and
outbound, grew very rapidly over the period 1970-75, the inbound increasing
at a compound rate of 17.7% p.a., and the outbound at over 15% p.a. (Table 9);
these high-growth rates are forecast to continue through 1978/79, gradually
diminishing thereafter to 12 or 13% in the period 1982-85 (Table 8).
5.08 The major bulk commodities, wheat, fertilizer, cement, and petro-
leum products will continue, throughout the forecast period, to be handled
over specialized berths, the capacity of which should be adequate to handle
the forecast volumes up to at least 1985. The forecast growth in these
commodities, therefore, does not create any additional capacity requirements
or affect the project's economic justification. Additional details of the
traffic forecast are contained in Annex 7.
5.09 The principal risk in the traffic forecast is that a smaller
proportion than forecast of the general cargo traffic will be containerized.The effect of this would be to bring forward the need for additionalbreak bulk berths and to defer the need for further container development
under Phase II of the master plan. It would not, however, significantly
affect the justification of the proposed project.
C. Project Benefits and Risks
5.10 The economic benefits of the proposed project are derived from
a comparison of ship-waiting time with and without the project. It isbelieved that the adoption of a non-exclusive berthing policy would vir-
tually eliminate the present ship-waiting time which, in 1975, averaged
one to two days per ship. However, even with the changed berthing policy
and the forecast improvement in cargo-handling productivity, berth occu-
pancy without the proposed project would reach about 85% in 1979; by 1982
the present facilities would be close to the saturation point, and ship-
waiting time would increase to about 5,900 ship days.
5.11 The economic costs of the forecast ship-waiting time would increase
from US$2.6 million in 1979 to US$14.2 million in 1982 and in 1983, and there-
after, are assumed to stabilize at US$20 million. The annual amounts of these
benefits are shown in Table 10, and comprise only those benefits accruing to
the Indonesian economy. It should be emphasized that the real economic costs
would be in terms of economic development foregone, and there is no reason to
expect that such costs, for which ship-waiting time is a proxy, would, in fact,
stabilize after 1982; on the contrary, it seems probaeIe-th-att they would con-
tinue to rise.
5.12 The proposed container facilities would permit faster and more
efficient handling of containers than at present, and this is likely to
result in some saving in dock labor costs. At market wage rates this would
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amount to about US$300,000 p.a., a benefit of US$150,000 p.a. has been takenreflecting a shadow wage rate of about 50%. This saving will be achievedthrough a reduction in the number of additional workers who would otherwisebe needed to handle forecast traffic increases.
5.13 The proposed container facilities would be at least five times asproductive as break bulk general cargo berths so that about 2,000 m of breakbulk berths, costing about US$50 million, would be required to provide thesame cargo capacity as the 400 m of container berths, costing about US$14million. Use of break bulk berths in lieu of the proposed container facil-ities would create an additional 900 jobs, but at an extra capital cost ofUS$36 million, or US$40,000 per additional job, an unacceptably high cost forIndonesia.
5.14 The more efficient container-handling facilities to be providedwould reduce the turnaround time of container ships, would encourage useof larger, more efficient ships, and would probably result over the long term,in reduced container freight rates. However, in view of the uncertaintyof the timing and scale of any reduction in freight rates, these have notbeen included in the benefits.
5.15 A lower volume of containerized cargo, the principal risk inthe traffic forecast, would reduce the utilization of, and justificationfor, the container facilities. However, it is most unlikely that con-tainer traffic would fall so far short of the forecast as to offset thesaving in capital cost derived from the container facilities. The pro-vision in the project of a combination berth, which can be used for breakbulk general cargo further reduces the risks in this regard.
D. Economic Return and Sensitivity Analysis
5.16 The foregoing benefit of ship-waiting time avoided, yields aneconomic return of 18% on the proposed project.
5.17 Due to the temporary traffic decline in 1974 and 1975, and to im-provements in port operations, the return on the project in the initial twoyears is low: 4% in 1979 and 5% in 1980, indicating that, if the berthingpolicy is changed and cargo-handling productivity is improved, the projectmay be somewhat premature. However, as previously noted, the benefit ofavoided ship-waiting time does not cover all the project's economic benefits;moreover, construction of the project has already commenced, and it would notbe economic to suspend the project on completion of the Government-financedworks, because the sunk investment would yield little benefit without thebackup area to be financed by the Bank.
5.18 The economic return was tested for sensitivity to changes inthe values of the key variables and, within a feasible range, was found tobe sensitive only to changes in capital costs. A 25% increase in capitalcosts would reduce the return to 14%.
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VI. FINANCIAL EVALUATION
A. General
6.01 In general, the port's financial position is satisfactory, although,as already noted, financial relations with the Government need to be alteredand the financial management and accounting staff needs to be strengthened.Accounting procedures were improved in 1973-74 with the help of ADB-financedtechnical assistance, but further changes are required. Technical assistancefor the introduction of various changes proposed is included in the proposedproject and detailed in Annex 5.
B. Accounting and Costing Systems, Rates and Charges
6.02 ADB-financed experts designed new accounting systems for the portin 1973-74 which have been partially introduced. They are generally satis-factory, but as regards assignment of expenses and some procedural matters,require some modifications (Annex 8). In addition, a costing system to re-flect all costs involved in particular, port functions should be designed andimplemented (Annex 9). During negotiations, implementation of accountingand costing systems satisfactory to the Borrower and the Bank were agreed,(Annex 13).
6.03 The establishment of rates for all port services performed ispresently the responsibility of the MOC. A summary of the principal tariffrates in effect since July 1974 are set forth in Table 11. They representsubstantial increases over those in effect since 1968 and are adequate tocover all current operating costs, including depreciation. However, theyare not cost-based, and should be reviewed after determining the costs ofeach port function. During negotiations it was agreed that the rates foreach of BPP's services and for each of the services provided by the cargohandling companies will be based on the costs of each service.
6.04 The present tariff for storage encourages the use of transit shedsfor long-term storage and contributes to congested sheds and reduced portthroughput: for the first six months of 1975, storage revenues totalled 62%of total operating revenues. Revision of this tariff and those for harbordues, berthing dues and wharfage are recommended (Annex 10). During negotia-tions, agreement was reached that all storage revenues will be collectedsolely by BPP in accordance with its tariff and that all payments for cargo-handling services will be made directly to the cargo-handling companies bythe users of such services; it was also agreed that warehouses will be pro-vided for the long-term storage of cargo.
C. Asset Values
6.05 BPP's fixed assets were revalued as of December 31, 1972 at aboutRp 35 billion (Table 12). This value has appeared continuously on the port'sbalance sheet since December 31, 1973, although not officially approvedby the MOC until M4ay 1976. The increase in value resulting from the re-valuation, about Rp 33.7 billion, is subject to a revaluation tax of 10% or
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about Rp 3.3 billion in 1976. It was agreed during negotiations that this
tax will be paid by BPP in equal amounts each year 1977 through 1980.
6.06 Further, because of substantial inflation it was agreed duringnegotiations that BPP's fixed assets will be revalued from time to time in
accordance with consistently maintained appropriate methods of valuation or
revaluation acceptable to the Bank.
D. Financial Management and Staffing
6.07 Aside from the chief financial officer, the qualified accounting
staff is limited to three people with high school bookkeeping certificates.
In order to carry out expeditiously the proposed financial reorganization
described in para 3.08, the Government agreed during negotiations to
strengthen the financial management accounting staff in a manner, and accord-
ing to a timetable, satisfactory to the Borrower and the Bank, and based uponthe recommendations of accounting consultants (Annexes 5 and 13).
E. Past Earnings and Current Financial Position
6.08 Actual operating revenues, operating expenses and net income for the
12 months period 1972/73, the last nine months of 1973, the calendar year 1974and the calendar year 1975 are set forth in Table 14. The following ratiosreflect the earnings results of these four periods.
9 mos.Ratios 1972/73 1973 1974 1975
Operating 67 82 58 60Return on Net Operating Revenues 61.9 1.6 11.1 19.8Return (After Taxes 27.8 1.0 5.9 10.4But Before National DevelopmentFund Payments)
These ratios are satisfactory except for the shortened period in 1973 when BPP's
fiscal year was changed to the calendar year. The results in 1975 reflect thefull impact of the tariff increases effected in July 1974 as well as the in-creases in wage rates (Table 13). Total revenues in 1975 were 87% higher thanin 1974 and net operating revenues rose in 1975 by about 80%. The accountsshow no interest expense since funds for capital additions and improvementshave been for the account of the Government.
6.09 Net operating revenues have been adversely affected by the practice,introduced in 1973, of payments by BPP to the operating companies of 20% ofstorage charges for the first 15-day period and 10% of such charges thereafter;in the first six months of 1975, the payments amounted to approximately 10% oftotal port revenues. These payments to the private companies are assertedlyto cover their administrative costs; but the cargo handling charges of private
companies should be reasonably related to all their costs and none should berecovered from the port. The practice appears inherently unreasonable and
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should be discontinued. This matter was discussed during negotiations and
agreement was reached on a revision of the financial relations between BPP
and its operating companies (para 6.04).
6.10 Previous years' assessments of income tax and National Development
Fund (NDF) payments due, have been excessive because of the low annual de-
preciation included in the accounts, which reflected the under-valuation of
assets. Further the port has not paid its income taxes and its NDF obligations
in full; and at the same time it has not been paid by Government departments
for many of its services in respect of Government cargo. It was agreed duringnegotiations that by July 1, 1977 the Government will prepare a plan for the
full settlement of all such claims and implement it after consulting with the
Bank. It was also agreed that Government will ensure that all future amountsowed for port services by the Government and any of its departments, agencies
or enterprises will be promptly paid when due.
6.11 Balance sheet data as of March 31, 1973, December 31, 1973, 1974
and 1975 are set forth in Table 15. Current ratios and liquid ratios have
been good, the former ranging between 3.8 and 1.6 and the latter between 3.6
and 1.5. The balance sheets show no long-term debt. Explanatory notes are
set forth in Annex 11.
6.12 The current assets include accounts receivable which are long
outstanding (Annex 11). A correct basis for the statement of current assets
and liabilities will be established by the consulting accountant.
F. Future Earnings and Financial Position
6.13 Estimated revenues, expenses and net income for 1976-82 are shown
in Table 14. The principal bases and assumptions on which the estimates aremade are set forth in Annex 12 and include BPP assumption of debt to theGovernment for the proposed Bank loan for a similar term at an interest rateof 12% p.a. under a subsidiary agreement satisfactory to the Bank (para 4.06).
6.14 For the years 1976-82, forecast revenues follow closely the trafficforecast in terms of the units employed in the existing tariff except for
storage. It is assumed that cost based tariffs will be introduced on January
1, 1979 which will considerably increase storage charges and reduce the volume
of cargo being held in transit storage areas. Storage revenue, which is nowdisproportionately high due to huge quantities of cargo stored at cheap rates,will decline. This revenue loss in 1979 is however, expected to be largelyoffset by an extension of warehousing services and an increase of wharfagecharges which currently do not meet the costs of the service and constitutea mere 1% of total port revenue. In addition to the proposed adjustment to
existing rates described above overall tariff increases of 10% effectiveSeptember 1, 1979 and 20% effective September 1, 1980 have been provided for.
Forecast expenses have been directly related to vessel and cargo traffic, as
appropriate (Annex 12). Inflation has been estimated at 12% in each year1977, 1978 and 1979, and 10% in 1980, 1981 and 1982. The cumulative effect
increases working expenses by 12% in 1977, 25% in 1978, 40% in 1979, 55% in1980, 70% in 1981 and 87% in 1982.
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6.15 Operating ratios range from 60% in 1977 to 78% in 1982; timesinterest earned, reflecting assumption of the ADB loan and future debt, anddebt service coverage are never less favorable than 1.5 and 1.9 respectivelyin 1982. These ratios are satisfactory.
6.16 Estimated balance sheet data for the years 1976-82 are shown inTable 16. The principal bases and assumptions on which the projections havebeen made are referred to in Annex 12. The assumption of the responsibilityfor the service of long-term debt (para 3.08) will adversely affect portfinances but, with the tariff levels assumed, not to an unacceptable degree;the debt/equity ratio rises to only 38/62 by 1982. The financial projectionsalso show that the maximum debt service ratio to net revenue in 1982 would be1:1.9. It was agreed during negotiations that no new debt would be incurredif these rates fell below 1.75. The current and liquid ratios reach a peakof 2.5 and 2.3, respectively, in 1981 and 1982, and remain at favorable levelsthroughout the period. The port's future financial position will be satis-factory.
6.17 The rates of return on average net fixed assets in use for the1976-82 period calculated on various bases as reflected by the financialforecasts are set forth below:
Return afterReturn Income taxes and
After Depreciation Revaluationbefore interest Tax Payments
1976 18.3 10.11977 20.2 9.11978 16.2 7.81979 9.4 5.31980 9.4 5.81981 12.2 9.31982 10.0 8.7
The returns on average net fixed assets in use are satisfactory. It wasagreed during negotiations that BPP shall earn after income and revaluationtax payments but before contribution to the NDF a return of not less than 5%of the average current net value of BPP's fixed assets in service in the fis-cal years 1977-80 inclusive and not less than 7% thereafter. Because of theimpracticability of earning such a return in any year in which a revaluationtax accrues, it was further agreed that the 1976 revaluation tax would bepaid by BPP (along with other arrears) in four equal amounts in 1977 through1980, and that the return would be calculated on that basis. With respect tofuture revaluations and the tax thereon, it was further agreed that for pur-poses of calculating the return, any tax payable will be deemed to be paid inequal installments over a period of four years, that is, the year in which itis incurred and the following three years.
- 23 -
G. Cash Position and Financial Plan
6.18 Estimated cash flow data for the forecast period are set forth inTable 17, which takes into account agreements reached during negotiationsconcerning the payment of arrears to Government for back taxes and the taxon the revaluation of 1973, current fixed payments to Government for taxesand contributions to the NDF. The cash position is made satisfactory by theinclusion of equity contributions by Government totalling Rp 17.3 billionduring the 1976-82 period. Because of the massive withdrawal of cash byGovernment amounting in the aggregate to more than Rp 33.0 billion, the cashposition would be negative in every future year, if the equity contributionswere not made. The amount of such contributions each year by Government isdetermined in the cash flow statement by the assumption that BPP's cash work-ing capital needs are about 12.5% of its annual working expenses. This isreasonable considering the revenue collection experience of BPP. The paymentby Government for services received from BPP (para 6.10), as agreed duringnegotiations, are reflected in the cash flow statement in the negative andlow increase in working capital in the years 1977 and 1978. Based on allassumptions referred to herein the future cash position will be satisfactoryif expenditures on other capital works are limited to US$1 million p.a.,except in 1977 and 1978 when works in Basin 1 financed by BPP will be in pro-gress. This was agreed during negotiations. The financial plan (Table 18)based on the cash flow estimates indicates that for the period 1976-79, in-ternally generated funds would provide 19.5% of investment program require-ments; and that this percentage would be nearly 19% in the full period 1976-82.This is satisfactory. The BPP contributions to its investment program couldbe much higher but for its payments to the NDF totalling Rp 9.1 billion during1976-82. To this extent the Government's equity contributions can be con-sidered as a return of BPP's internally generated funds.
H. Auditing and Insurance
6.19 External auditing is now the sole responsibility of the GovernmentAuditing Office, in the MOF. It is performed continuously by a team of sixauditors, whose main function is to ensure compliance with the approved portbudgets covering all expenditures, both capital and operating. The auditors'reports are transmitted to the MOC and are not received by the chief of theport's finance division; the report for the year 1971/72 was completed aboutJuly 1975. Agreement was reached during negotiations that independent ex-ternal auditors satisfactory to the Bank will be employed to have the accountsand financial statements for each fiscal year audited, in accordance withsound auditing principles consistently applied; and to furnish to the Bankas soon as available, but in no case later than four months after the end ofeach such year, (i) certified copies of its financial statements for suchyear as so audited and (ii) the report of such audit by the auditors.
6.20 Present insurance practices cover only life and accident insurancefor the staff and fire insurance on the shed used for the holding of danger-ous cargo, and is inadequate. It was agreed during negotiations that theport shall make provision for insurance against such risks and in suchamounts as shall be consistent with appropriate port management practices.
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VII. AGREEMENTS REACHED AND RECOMMENDATION
7.01 At negotiations, the Government confirmed that:
(a) it will establish an organization within DGSC res-ponsible for ports and dredging (para 3.04);
(b) an adequately staffed project unit is being establishedwithin BPP with an adequate budget (para 4.06); and
(c) the ongoing works in Basin III are expected to besufficiently advanced to enable the Bank-financedwork to commence in March 1977 (para 4.08).
7.02 Submission of a draft of the subsidiary loan agreement which wouldbe entered into by the Government and the Perum and of the details of arrange-ments for passing on the loan to BPP prior to the formation of the Perum, allsatisfactory to the Bank is a condition of loan effectiveness (para 4.06).
7.03 At negotiations, the following were the other major agreementsreached with the Government:
(a) A "Perum" for ports and dredging is to be establishedin DGSC as well as an adequately staffed planningorganization; an inventory of facilities at all existingports to be prepared by the Ports Directorate; and a sur-vey of RLS ports to be carried out (paras 3.04 and 3.05);
(b) BPP will be part of the overall Perum with exclusiveresponsibility for management of its own assets; itsoperational and maintenance departments are to berestructured and cargo handling areas reorganized,together with grouping of operating and forwardingcompanies, and liberalization of cargo movements, inorder to improve operational results (paras 3.08and 3.16);
(c) BPP to implement the Amsterdam team's proposals (para 3.17);
(d) BPP to implement revised accounting and costing systemssatisfactory to the Borrower and the Bank (para 6.02);to introduce a cost-based tariff (para 6.03); tostrengthen its financial management and accountingstaff (para 6.07);
(e) No new debt to be serviced by BPP shall be incurred if theBPP's net revenues in the prior year is less than 1.75 timesits debt service in any future year (para 6.16); and
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(f) BPP shall earn, after all taxes but before NDF contributions,a return of not less than 5% of the average current netvalue of its fixed assets in service in fiscal year 1977to 1980 inclusive and not less than 7% thereafter(para 6.17).
7.04 The project is suitable for a Bank loan of US$32 million equivalentto the Government of Indonesia for a term of 20 years, including a four-yeargrace period. BPP will assume a debt to the Government equivalent to theBank loan, for the same term, but at 12% interest. A subsidiary agreementsatisfactory to the Bank will be signed to this effect.
September 1976
ANNEX 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Asian Development Bank Financed Project 1972
The project comprised:
(a) upgrading and widening of aprons and transit shedfloors;
(b) strengthening of the breakwater;
(c) rehabilitation of all existing transit sheds andreconstruction of four transit sheds on the westside of the Basin I;
(d) construction and improvement of roads, open storageareas and parking areas;
(e) replacement and rebuilding of the water supply system;
(f) rehabilitation and construction of drainage, fendersand fences;
(g) installation of a new lighting system;
(h) procurement of cargo handling equipment and a 1,500 hptugboat; and
(i) provision of consultants services.
The estimated total cost is Rp 4.7 billion (US$11.3 million equivalent).
September 1976
ANNEX 2
Page 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Existing Facilities at Tanjung Priok(Map 12150)
A. Approaches, Navigation and Floating Equipment
1. Tanjung Priok is approached from seaward by an entrance channel
with approximately 11 m 1/ depth of water between the breakwater arms at the
western end of the port; a main East-West channel in the deepsea harbor be-
hind the breakwater, also with about 11 m depth of water, which serves
Basins I, II and III and the oil basin; and the Nusantara basin channel to
the Regional harbor with soye 6 m depth of water. Maintenance dredging is
moderate at about 200,000 m p.a. occurs mainly in the oil basin where a main
drainage canal discharges. Basins I and II each have 8 m depth of water
(10,000 dwt ships), Basin III, 10 m (20,000 dwt ships), the Nusantara basin
4.5 m (2,000 dwt ships) and the oil basin 11 m (45,000 dwt ships). A new
entrance channel with 12.5 m depth of water (60,000 dwt ships) is being
dredged at the eastern end of the port and will mainly serve the oil basin.
Tidal range is 1.4 m and mean high water about 0.9 m. The existing 8,500 m
long breakwater is adequate.
2. Navigational aids are satisfactory except that the power of some
lights needs to be increased; night navigation is possible but little used.
Pilotage is required for all vessels, excepting those under 20 m length, and
presents no problems.
3. Tugs available are adequate and include one new 1,500 hp just
received, two to be delivered in 1976 and five about 10 years of age; the
latter may require replacement during the period 1980-85; the pilot and
mooring boats available are adequate. There are three floating cranes
with nominal capacities of 15, 60 and 200 tons. Within the port area
there is one major shipbuilding and repair yard (P.N. Dok) and two smaller
ones.
B. The Overseas Harbor
4. Berthing space for general cargo ships in the overseas harbor
(Basins I (East), II and III) is provided on two finger piers each 1,030 m
long and 300 m wide, and amounts to some 3,650 m, excluding 700 m currently
1/ All depths are at LWOST.
ANNEX 2Page 2
under construction in Basin I; due to the disposition of sheds relativelyto available berthing space, this is effectively reduced to 3,200 m forcyrgo handling. There are 20 alongside transit sheds which provide 90,000m storage space (Table 1). Bulk berths are available for cement (P.T.Salman Cement Co.) and fertilizer (Pertamina Gulf) 180 m and 160 m long 2respectively with two cement storage silos of 26,000 tons and a 15,600 mfertilizer storage shed. The available apron space on many berths has beenimproved under an ADB-financed project (Annex 1), as has access to the rearof the sheds and the open storage areas; improvements have also been made towater and electricity services. The overseas harbor can accommodate regionaltraffic if necessary.
C. The Regional Harbor
5. The Regional harbor (Basin I (West) and Nusantara basin) currentlycomprises some 2,100 m berthing s Face (1,950 m effective) and has 15 transitsheds which provide some 64,000 m storage space, four of the sheds arenew and were provided under the ADB project. The existing Perahu basin can-not presently accommodate ships, and is used by barges which mainly handledangerous cargoes, off-loaded at buoy berths located at the Western harborentrance. The berths in Basin I which are included in the Regional harborcould accommodate overseas vessels if necessary.
D. General
6. Adequate warehousing and open storage are available in bothharbors and provision is made for separate storage of dangerous cargoes.Fresh water and bunkering services are available either by barge or atthe berths.
7. Cargo handling equipment available from BPP comprises twenty 5-tonforklifts, three 5-ton mobile cranes, two tractors and ten lowbed trailers,all practically new. About sixty-five 2.5-ton forklift trucks are providedby the operating companies. There are also twelve 3-ton capacity portalcranes which are no longer used and should be disposed of.
8. The port is served by road and rail but, except for fertilizerimports and petroleum products, only 2% of traffic is delivered by rail.Roads within the port are generally satisfactory, though some improvementsare proposed; external road access to the port and the entrance gates requireconsiderable improvement; these are included in the proposed project(Annex 4).
September 1976
ANNEX 3Page 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Description of Ongoing Government Works in Basin III
1. The Government-financed construction in progress on the East sideof Basin III, behind which the Bank-financed works in the area are to be
constructed, comprises a 920 m long reinforced concrete piled structure
dredged to 11 m depth alongside. This will provide 520 m berthing space
for general cargo ships, 220 m for container ships and 180 m for use by
either type of ship (combination berth). Provision is made for placing
container crane rails on the container and combination berths.
2. The berths are being constructed with precast deck units, over
which in-site concrete is placed to key the beam and slab units together
and provide the finished surface. The deck is supported on five rows of
piles over a width of 22.5 m, with a 2.5 m wide fendering beam overhanging
the seaward row of piles to give a total deck width of 25 m. The piles are
spaced at 5.64 m centers along the length of the wharf.
3. Construction is being carried out with the inshore edge of the
deck approximately 80 m from the existing undeveloped shoreline to take
full advantage of the existing water depth in Basin III and reduce dredging
requirements. The space between the structure and the existing shoreline
will be sand filled, terminating in a sloping face under the width of the
structure with its toe at the alongside dredged level. The sloping face
is covered by a rock blanket for protection against scour.
4. The piles are about 25 m long founded at approximately -22 m
level and are designed to carry loads of 180 tons and 235 tons respect-
ively under the general cargo and container sections. They are being
tested to 270 tons and 350 tons loading respectively. Some of the piles
which failed the test have been or will be re-driven. Pile testing and the
required re-driving has been done for about half the total piles, but re-driving and testing has still to be done on the remaining piles already
driven on the combination and container berth sections.
5. Difficulties have arisen concerning the placing of the sand fill
behind the reinforced concrete structure. Tests have shown the existence
of a layer of soft clay on the seabed about I m thick which, unless special
measures are taken, will imperil the stability of the sand fill and cause a
risk of it sliding forward into the basin. The simplest solution would beto dredge out all the soft layer but, because the piles have been driven and
about 150 m of deck placed at the South end, this is impractical. It is,
therefore, proposed to excavate the soft material in trenches between
ANNEX 3Page 2
the piles and for some distance in front of and behind the driven piles, stab-ilize the selected sand fill by vibroflotation and provide rock fill to thebase of the excavated trenches; finally a relieving platform will be providedbehind the wharf structure. BPP's consultants for the work have devised theremedial measures and the Bank has been kept informed. The necessity for thisadditional work will delay placing the fill, and excavation of the trencheswill be difficult.
6. BPP have advised the Bank that the works will be delayed as aresult of the above problems, but will be completed by October 1977; assur-ances have been given, however, that the work will be programmed to ensurethat sufficient work will be completed to enable the Bank-financed civilworks contract for Basin III to commence in January 1977 (Annex 4).
September 1976
ANNEX 4
Page 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Detailed Description of the Bank-Financed Project
Basin III
1. Complementing the berths being constructed by the Government(Annex 3), the civil works contract will include demolition of the exist-ing buildings on the land to be acquired, and filling of the Koja canal;appropriate rock protection against scour will be provided to 'the slopeof the fill material where the canal originally joined the Koja Terusan.These preparation works, together with the Government-constructed concreteberths and the filled area behind them, will provide the construction areaon which will be provided:
(a) For the General Cargo Berths (520 m)Three clear span transit sheds each 120 m x 50 m, with30 m surfaced apron in front and 45 m openings betweensheds for access to 3.6 ha open storage area. Behindthe transit sheds truck loading space will be availableand a 15 m wide access road. 11 m depth of water (30,000dwt ships) will be available alongside at LWOST.
(b) For the Combination Berth (180 m) and Container Berth (220 m)The area to be paved behind the front edge of the berthsis about 6 ha. About 25 m width at the front of the berthswill be required for crane movement and the balance of about5 ha will permit direct loading of containers on to roadchassis for conveyance to inland container handling depots,and temporary storage of a limited number of containers inthe event the road chassis are delayed for any reason. De-tails of the scheme are at Annex 6. 11 m depth of water willbe available alongside at LWOST.
2. All paving will be asphaltic concrete, sloped to provide ade-quate drainage; water supply, electricity, sewage, bunkering and fire-fighting services will be provided. Ancillary works will include main-tenance garages, a BPP office, Customs office space, a labor unit, anda gatehouse.
ANNEX 4Page 2
3. General cargo handling equipment to be provided will be:
25 - 3 ton forklift trucks
3 - 15 ton forklift trucks
2 - 10 ton mobile cranes
3 - tractors
15 - trailers
4. The container handling system is based upon the use of two 40-ton
container cranes with 35 m outreach, which will offload containers from theships to road chassis for conveyance to the inland container depots. Stacking
at the inland depot, at Cakung will be by rubber tire mounted overhead cranes,
which will span the stacking area. For movement from the stack to the con-
tainer freight shed, the overhead cranes will place containers on flat-bedtrailers which will be towed to the door of the shed for direct cargo unload-
ing by 1-1/2 ton forklifts. Heavy forklifts are included in the equipment to
move a container from a damaged trailer, and for general use (Annex 6). Totalequipment will be:
2 - 40-ton container cranes
2 - rubber tire mounted overhead cranes
40 - flatbed trailers
11 - tractors
2 - 20-ton forklift trucks
20 - 1-1/2-ton forklift trucks
Containers moved to the "Trisari" site near the Nusantara basin will behandled by the existing equipment there. Chassis-mounted containers will be
moved from the site by the shipping companies to the inshore container hand-ling facility.
Regional Harbor
5. The new construStion in the Regional harbor (Perahu basin) willrequire about 6,000,000 m dredging to provide access to the new 545 m longreinforced concrete, open-piled berths which are to be built with 6 mdepth of water alongside. Three transit sheds, one of 100 m x 50 m and two
of 112 m x 50 m, will be provided behind a 20 m berth apron, with space fortruck loading and 3.5 ha open storage area behind the sheds. A new accessroad approximately 1 km in length is to be provided.
ANNEX 4Page 3
6. Paving will be asphaltic concrete sloped to provide adequatedrainage, and water supply electricity, sewage, bunkering and fire fightingservices will be provided. Ancillary works will include a maintenancegarage, labor unit and gatehouse.
7. Mechanical cargo handling equipment to be provided comprises:
25 - 3-ton forklift trucks
2 - 20-ton mobile cranes
Improvements to Existing Road Access
8. The works on the external access roads will (i) improve theaccess from Jalan Martadinata to the Nusantara basin at entrance gateNo. 1 by provision of one-way access ramps; (ii) widen Jalan Martadinatabetween entrance gates Nos. 1 and 2 and provide one-way access ramps togate No. 2; (iii) provide a flyover to join Jalan Martadinata with JalanEnggano, which will cross the existing rail access to the port and theexisting road system serving the railway and bus stations, and terminateon Jalan Enggano approximately in line with the East side of Basin I.The existing bus station will be relocated; (iv) widen Jalan Martadinatawestward from gate No. 1 for about 5 km and (v) provide traffic controllights at entrance gate No. 3. All the above proposals were designedfollowing assessment of urban and port traffic and were discussed andagreed with the Jakarta planning organization.
9. Inside the port, separate new main access roads along the centresof each of the piers between Basins I and II and between Basins II and IIIare to be constructed.
10. Future improvements to the external access roads, for whichaction under the present loan will be limited to detailed design, are(i) a flyover at the junction of Jalan Enggano and the existing Jakartaby-pass road and (ii) a new extension of Jalan Enggano to the eastwardfrom its junction with the Jakarta by-pass to join the Cilincing roadadjacent to the existing oil basin.
Housing Site Services
11. The proposed phase II expansion of the port and the future improve-ments to the land access (para 10) will involve demolition of some 500 houseswhich will have to be replaced before these works can commence. Assistancein financing the provision of services for the required houses has accordinglybeen included in the proposed loan. Land on which the new houses are to beconstructed will be provided by Jakarta City Council and, until this isallocated, details of precise requirements cannot be determined; provisionfor the services has been made on the basis of US$2,000 per house, for com-parable facilities to those currently existing.
ANNEX 4Page 4
Technical Assistance and Training
12. Details of the technical assistance and training program aregiven in Annex 5.
Consulting Services
13. Swan Wooster Engineering Co. (Canada) has been appointed byBPP and the Government to prepare final designs and tender documents forthe works except for general cargo and mobile container handling equipmentbut including the container cranes, described in paras 1-10, and for super-vision of construction thereof.
September 1976
ANNEX 5Page 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Technical Assistance and Training Program
1. The technical assistance and training program will provide 202man-months of consultant services and cover four distinct areas of portoperations, labor training, accounting procedures, management and opera-tions improvements and customs procedures, as well as assistance forimproving planning procedures in DGSC. Details of the proposal's in eachcase are given below. The Bank has also been requested to finance a studyof the best means for distributing the products of the Krakatau Steel Mill,which is expected to be in production in 1978, and finance for this study,is included in the proposed loan. Provision of equipment required to im-plement the training programs has been included as part of the generalmechanical equipment procurement.
Labor Training
(a) Cargo Handling
2. Currently the cargo handling productivity in the port is low -5.7 tons per gang hour - due in part to the comparatively little use madeof mechanical handling equipment and palletization of cargo, but also tothe traditional attitudes of labor and its lack of training in moderngeneral cargo handling methods, although BPP has started a trainingschool.
3. It is proposed to provide a mock-up of a typical ship's hatchand cargo hold, complete with derricks and ancillary equipment such aspallets, forklift trucks, slings and other tackle required to traingangs in modern methods. Specialized instructors will advise on the re-quired equipment, prepare the syllabus, train Indonesian counterpartinstructors and monitor the program's initial courses. Provision ismade for:
Equipment US$120,000 equivalentTwo instructors for 12 months (24 man-months)
(b) Maintenance Tradesmen
4. The maintenance crews in the port seriously lack qualifiedtradesmen who cannot be obtained by recruitment as there is a general lackin the country. Provision is, therefore, included for equipping a small
ANNEX 5
Page 2
tradesmen's school and for providing instructors to prepare appropriatesyllabuses, train Indonesian instructors and monitor the program's initialcourses:
Equipment US$200,000 equivalentThree instructors for 24 months (72 man-months)
However, before any new arrangements are concluded, the possibility of
using existing training facilities will be fully explored by the Bank's
training specialists. In the event this proves possible and the alloca-
tion for the purpose can be scaled down, any surplus funds would be
transferred to contingencies.
Accounting Procedures
5. In order to prepare the revised accounting procedures proposed
in Chapter VI and Annexes 8 and 9 and to train staff in the required pro-
cedures, specialist consultant assistance will be provided as follows:
Two consultants for 24 months ) man-months)One consultant for 12 months )(6)
Management and Operations Improvements
(^} Management Training (middle management)
6. There is a need for BPP to train middle-management level staffto improve the current management procedures and provide for additional
staff for expansion, consistent with increasing traffic. This can bestbe achieved by using the existing facilities at Bandung Technical Insti-
tute. Provision in this program is for a training specialist to prepareand agree with the Institute an appropriate program and to monitor theinitial course.
One instructor for 6 months (6 man-months)
(b) Container Operations
7. In order to take full advantage of the new container facilities
which BPP will operate, it is proposed that three teams of six personsfrom their staff (drivers and supervisors), should attend trainingcourses in container-handling techniques, including appropriate recordingprocedures and methods, at Hong Kong or Singapore. Estimated cost is
US$200,000.
ANNEX 5
Page 3
Customs Procedures
8. A small study is proposed to investigate existing proceduresand recommend changes, so as to simplify and expedite the processing ofconsignees' documents, the payment of proper dues, and the release ofgoods to consignees. This study should be undertaken by a specialistconsultant experienced in port operations and Customs-related proceduresand be completed within 18 months of the loans becoming effective.
One consultant for 4 months (4 man-months)
Planning Assistance for DGSC
9. (a) To prepare the required survey of ports used by theRLS fleet, it is proposed that one operations and oneengineering specialist visit each of the ports, recordthe facilities existing and their condition, and re-commend improvements of a minor nature (not in excessof US$500,000) which could be undertaken immediatelyto expedite the turnaround time of RLS ships. Anymajor improvements identified would be subject tosubsequent feasibility studies.
Two consultants for 9 months each (18 months)
(b) To set up a data collection system for recordingassets of each port, capital expenditures andtraffic data. The consultants will also adviseon the future development of the planning function,including organization, staffing and planningmethodology.
Two consultants for 9 months each (18 months)
Krakatau Steel Mill Distribution
10. A study for the distribution of the products of KrakatauSteel Mill, requested by the Government, is proposed to be undertakenin accordance with outline terms of reference to be agreed betweenthe Bank and the Government. A sum of US$250,000 is included for thispurpose.
ANNEX 5Page 4
11. The cost of the above technical assistance and training programis calculated as follows:
US$
Consultants 202 man-months x 6,500 1,313,000 /a
Container Operations Training 200,000
Krakatau Steel Diptribution Study 250,000
Total 1,763,000
Say 1,770,000
/a includes US$50,000 for airfares and US$300,000local reimbursable costs.
September 1976
ANNEX 6Page 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Alternative Container Handling SystemPending Completion of the Container Stacking Area
1. The Government and BPP are anxious to free the general cargo berthsof the growing container traffic and place the new container wharf in serviceby September 1977, when it should be possible to have the container craneserected and the berth apron surfaced; arrangements as proposed below, will berequired to handle the container traffic.
2. A 90 m wide apron will be provided behind the container berth facewithout taking any area of the land leased by the auto assembly companies.
After allowing for the 25 m width of the container cranes, an operating space
65 m wide will be available. This is adequate to permit road chassis and
tractors, using a one-way system, to enter on the berth from the new access
road, proceed parallel with the new rear fence and turn into line with the
overhang of the container cranes under which the containers are lowered.
Thus, chassis and road tractors could continously move containers, loadeddirectly onto them by the cranes, to inshore container handling facilitieswhich exist at Cakung (about 12 km to the east of the port) and at the"Trisari" installation adjacent to the Nusantara basin (about 3 km to the
west).
3. In the event of a delay in the cycle there will be sufficientspace to stack a limited number of containers on the container and com-
bination berths for later movement; thus ship unloading would not bedelayed.
4. The procedures would be:
(a) containers would be offloaded from ship by the two40-ton container cranes and delivered onto roadchassis and tractors to be taken to Cakung, or"Trisari" at the rate of 15 per hour for eachcrane; (offloading equipment is available at"Trisari");
(b) the containers would be offloaded from road chassisto stack at Cakung;
ANNEX 6Page 2
(c) containers would be moved from the stack at Cakungto the container freight sheds (cfs) located there
for stuffing and unstuffing and returned to stack;
and
(d) it would be necessary to handle containers to
temporary stack on the berth in the event a roadchassis is not available when a container is
offloaded.
5. Equipment required to carry out the procedures outlined in
para 4 above has been calculated on the following basis:
(a) each movement to stack on the berth would take abouteight minutes, therefore three tractors and trailer
could handle this requirement adequately (each trailerwill be provided with a tractor to avoid risk of any
delay); the limited number of containers involved could
be handled off the trailers by a 20-ton forklift truck;
(b) for the movement from berth to Cakung (12 km) the round-trip would take 50 minutes assuming: (i) the time requiredto put a container on the chassis and make it secure is
five minutes; (ii) the round trip by road will be 40
minutes and (iii) to offload at Cakung to stack willtake 5 minutes. Containers are expected to be offloaded
from the ships at an average of 15 per hour by each container
crane. Therefore, if a chassis is to be available under
each container crane every 4 minutes, about 30 road chassis
and tractors would be required. An allowance of one-thirdextra is made to cover inevitable delays in the theoretical
timetable equipment failures and possible faster unloading
at times, i.e., 40 road chassis and road trailers will be
required;
(c) for offloading to stack and movement from the stack to the
cfs at Cakung flatbed trailers and tractors will be used,
loaded by two rubber tired overhead crane units; and
(d) for handling containers off a damaged chassis (flat tires
etc) and other handling, as may be required, one - 20-tonforklift truck will be required at the berth and at Cakung;
for unstuffing containers at the cfs in Cakung, one 1/2-ton
forklift truck will remove cargo from the containers.
ANNEX 6Page 3
6. Rubber tired overhead crane units, tractors and trailers (Annex 4) arebeing provided to ensure availability equipment for operating the containerstacking area expected to be constructed about 1979 if the necessary land isavailable; as well as to meet the requirements outlined in para 4. Roadchassis and tractors are not, however, proposed for the latter scheme andwill have to be provided in addition. BPP proposed to require the shippingcompanies handling containers to provide the necessary road chassis and trac-tors and this is considered reasonable, as they are doing this at present.
September 1976
ANNEX 7Page 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Traffic Forecast
General Cargo Imports
1. The projection is based on the economic projections underlyingRepelita II, the Government's long-term plan for the period 1975-80, namely:
(a) growth in GDP of 7% to 9% p.a.;
(b) growth in industrial production of 12% to 13% p,a.; and
(c) growth in per capita income of 4% p.a.
2. In addition, population growth over the period 1975-80 is estimatedto be 2,5% p.a. in West Java and 4% p.a. in the metropolitan Jakarta area,while personal income growth in these areas is estimated at 6.5% to 8% p.a.
3. A comparatively low growth is forecast for general cargo imports,3.9% over the period 1975-85 (Table 8), reflecting declining imports of steeland rice due to the substitution of domestic manufacture of steel from 1978,and progress towards self-sufficiency in rice.
General Cargo Exports
4. The primary exports of West Java, rubber, tea and coffee, have beenstable for many years and are not expected to increase in the future.
5. Light manufacturing, such as toys, textiles, furniture and consumerelectronic goods is expected to grow at 12% to 13% p.a. in metropolitanJakarta. However, most of this increased production will be for thedomestic market and, in light of the strong competition in these fieldsfrom other countries in the region, no increase in exports is forecast.Growth of light industry will, however, result in an increase in demandfor imports of capital goods, and this has been taken into account in theforecast of general cargo imports.
Inter-island General Cargo - Inbound
6. Inbound inter-island general cargo has shown a consistently highgrowth rate over the last five years, averaging 17.7% from 1970-75 (Table 9).
ANNEX 7Page 2
A high growth rate of 17% p.a. is forecast to continue through 1978, gra-dually declining thereafter to about 12% p.a. over the period 1982-85. Typesof general cargo contributing to this high growth rate include asphalt,construction materials, chemicals, and what may be a significant volume ofcargo redistributed after importation through other Indonesian ports. Thislatter is expected to be substantially reduced once the proposed facilitiesare in operation.
Inter-island General Cargo - Outbound
7. Outbound inter-island general cargo has also increased rapidlyover the last five years, its growth averaging over 15% in 1970-75 (Table9). This growth has shown less year-to-year consistency than in the caseof inbound inter-island general cargo however, in light of the Government'sprogram of import substitution for manufactured goods, it is expected thatconsumer goods manufactured in the Jakarta area will increasingly supplythe demands of other parts of Indonesia. A high rate of growth in suchoutbound cargo is therefore forecast to continue through 1979, graduallydiminishing thereafter to about 13% in 1982-85. Imports of capital goodsdestined for other Indonesian ports are expected to continue to move viaTanjung Priok and will contribute to this growth although, after 1979,when improvements to Belawan and Surabaya are expected to be complete,this traffic is expected to diminish.
Total General Cargo
8. Overall growth in general cargo is forecast to average 7.5% p.a.over the period 1976-85 (Table 8).
Homogeneous Dry Cargo and Petroleum
9. Wheat, fertilizer, cement and petroleum products and fodderwill continue, throughout the forecast period, to be handled overspecialized berths, the capacity of which is adequate to handle theforecast volumes up to at least 1985. The forecast growth in these com-modities, therefore, does not create any additional capacity requirementsor affect the project's economic justification.
10. The growth rate for wheat imports, nearly 9% p.a., is basedon population growth, increase in per capita income in the Jakarta areaand the income elasticity of demand for wheat, estimated for the periodto 1985 at 1.0.
11. At present, substantial quantities of fertilizers are importedthrough Tanjung Priok. As an existing urea plant at Palembang (Sumatera)is expanded and the product shipped directly to domestic ports, the volumeof imports will diminish. However, supplies of urea and other specialfertilizers for West Java, whether imported or domestic, will continue
ANNEX 7Page 3
to move through Tanjung Priok at about the present level until a ureaplant, planned for the Cirebon area, is completed about the end of 1978.Once it is in full operation, the Cirebon plant is expected to supplyabout a third of Tanjung Priok's present hinterland. Accordingly, ship-ments of fertilizer of all types are forecast to decline from 400,000tons in 1978 to 300,000 tons in 1980.
12. The present level of cement imports (1.1 million tons in 1975)is expected to be steadily reduced through 1981 as manufacturing capacityin Indonesia is expanded. Two new cement plants began production in themetropolitan Jakarta area in 1975 and are expected to reach a combinedfirst-stage annual capacity of one million tons by 1977. Subsequentexpansion is expected to raise this gradually to 2.2 million tons by 1985.Other plants on Java are expected to supply two million tons by 1981 andplants in Sumatera and South Sulawesi a further 2.4 million tons by 1981.By 1982 demand is expected to outstrip domestic production and importsthrough Tanjung Priok will begin to increase again. The forecast reflectsnot only these changes in the level of imports but also domestic movementsof cement from other islands to the Jakarta area in the period from 1978-81when the other islands will have surplus cement production.
13. The fodder which is exported through Tanjung Priok is a by-product of a mill, located on the east side of the port, which processeswheat imports. Both the wheat imports and the fodder, which is in theform of bran pellets, are handled over the mill's own wharf which isadequate to handle expected shipments over the forecast period. Onthe basis of forecast wheat shipments the production of bran pelletsmight be as high as 235,000 tons in 1985. However, current experienceseems to indicate some difficulty in achieving this full potential andthe forecast assumes that exports will be limited to 50,000 tons p.a.over the period 1977-85.
Petroleum Products
14. Petroleum products will continue, throughout the forecast period,to be handled over specialized berths in the oil basin. It is assumed thatimprovements to existing piping and tankage arrangements by Pertamina willresult in significant increase in the present very low handling rates andexcessive tanker turnaround times and, therefore, that the present berthswill be adequate to handle the forecast traffic to 1985. If this assumptionis not met, an additional berth will be required and this will either bebuilt in the oil basin, or all the oil berths will be moved to a locationoutside the breakwater, in order to make room for further expansion of thegeneral cargo berths. Since petroleum products are not unloaded at any ofthe general cargo berths, the berthing capacity required for general cargowill be unaffected whatever the outcome.
ANNEX 7Page 4
15. It is expected that, starting in 1976, petroleum products forthe Regencies of Bogor and Bandung will be supplied by a pipeline from arefinery at Cilacap instead of through Tanjung Priok. This will reduceshipments through the port, as compared with what they would otherwisehave been, by an estimated 100,000 tons in 1976; increasing to onemillion tons in 1985.
16. The hinterland of Tanjung Priok is expected to shrink furtheras a result of the development of large industrial complexes for steel,fertilizer and cement in the Serang and Cirebon Regencies. The fore-cast assumes that the substantial volumes of petroleum products to beconsumed by these complexes will be delivered through the ports of Merakand Cirebon, instead of Tanjung Priok.
September 1976
ANNEX 8Page 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Details of Modification Required in the Accounting System
Accounting Procedures
1. A technical assistance agreement between the Government and the
ADB dated April 7, 1972, provided for "streamlining the financial aspectof the operations of major seaports, including Tanjung Priok, in Indonesia".It was executed in 1973 and 1974 by financial management, accounting andtariff experts. The resulting accounting procedures recommended to replace
those in use covered:
(a) general ledger revenue accounting;
(b) general ledger budget centers, or functionaldepartmental accounts;
(c) accounting for expenses by types, such as:
(i) wages and salaries;(ii) materials and supplies;(iii) general expenses;(iv) sundry expenses, including depreciation; and
(d) a detailed classification of accounts for recording ofexpenditures by cost centers.
Items (a) and (d) have been implemented, but a statement of the resultsbased on (b) was not available, and that of expenses in accordance with(c) was available only for the year. The original port system of accountingis still in operation, but with many sound procedural changes recommendedby the ADB-financed experts. However, the two systems of accountingemploy substantially different valuation figures in their property anddepreciation accounts (para 6.05) and consequently produce substantiallydifferent results. A determination of the asset values to be used andrevision of the accounting system to produce one set of correct accountsis necessary.
2. The ADB experts' recommended revised accounting procedures are,in the main, satisfactory except for the use of the detailed classifica-tion of accounts to assign expenses to the revenue centers, as a basis ofcost finding. This procedure is complicated and needs to be changed.
ANNEX 8Page 2
Costing
3. A large portion of the total cost of cargo handling stems fromthe services performed by the operating companies (para 3.13) at ratesapproved by the Government. Total costs of the cargo handling functionalso include those incurred by BPP for staff and services as well as forproviding and maintaining all port facilities used in the cargo handlingfunction. Charges should be reasonably related to these costs and BPPand the Government should know what they are. However, the costing pro-cedures recommended by the ADB's technical assistance team do not providethis information and should be appropriately amended.
4. Provision is made in the proposed project for consultancy ser-vices to fully implement the accounting changes referred to in para 6.02and to design and implement cost finding procedures which will providefull cost information to management and serve as the basis for cost-related charges for all services, including all phases of cargo handling.
Depreciation
5. The report of the technical assistance expert provided by ADBstates in part;
"Provision has also been made in the balance sheet forthe recording of a capital assets replacement reserve.Initially, this account would be credited with the amountof increase in the value of capital assets as a result ofthe revaluation undertaken recently. Thereafter, thisaccount will be credited mainly with the additional depre-ciation that would have to be provided on the replacementcosts of the assets, by way of appropriation from the sur-plus, the depreciation on historical costs only being pro-vided as a charge in the revenue account".
Naming the revaluation reserve (an unrealized surplus account) a "capitalassets replacement reserve" provides nothing for replacements. Increasingthe amounts in this account, however labelled, would add no cash for re-placements either; and the procedure would distort the earnings statement.The full depreciation based on the replacement costs or values shown onthe balance sheet should be charged to operating expenses.
6. Establishing a provision for income taxes on the basis of fullobligations (regardless of payments made) and accounting for paymentsover several years, as a reduction of amounts owed in Government accountcurrent liabilities, fails to disclose the actual position at a giventime. The net unpaid obligation should be shown as a liability. Theaccounting consultant should recommend appropriate detailed changes inaccounting procedures.
ANNEX 8Page 3
7. The classification and coding of expenditure in the cost centerledger includes an account for every tug, 9 accounts for quay berths, 7accounts for buoy berths, an account for each of 8 pilot boats, for eachof 6 water barges, 4 for fresh water pipes by location, an account foreach of 4 mobile cranes, 31 portal cranes, 4 floating cranes, 9 kinds offorklift trucks, 35 transit sheds, 3 passenger stations, 5 "other shedsor structures", 27 warehouses or second line sheds - all of which requirefor listing some 15 pages of the report. These details are not requiredfor day-to-day accounting, nor for periodic cost finding and the codingshould be simplified to reflect the costing requirements.
8. Current assets and current liabilities appear to contain itemswhich do not qualify under the accepted definitions of such accountgroupings. Many items are old and have been carried for years as "current"assets or liabilities. Items for inclusion in these categories should bereviewed by the accounting consultant.
9. Long-term debt accounts need to be established, together with theprocedure for debt service interest and repayments.
10 The revaluation data require classification for separation ofvalues related to functional parts of the port.
11. The estimated future life of many old assets still in use requirereview based on technical appraisal together with a revision of depreciationrates for the future.
September 1976
ANNEX 9Page I
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Outline of Cost Finding Procedures Proposed
Costing procedures should be so designed as to be capable ofbeing used at any port in Indonesia large or small. They therefore shouldbe:
1. Uniform for all ports; that is, they should providecost centers related to all the usual port functionsthat might be encountered at any port in Indonesia,large or small.
2. Flexible and therefore capable of expansion and con-traction to meet the needs of any particular portlarge or small depending on the functions performedat the port, by its own staff or by others undercontract to the port.
3. Objective and therefore without reference to or con-sideration of present tariffs, kinds or levels ofrates and without reference to ability to pay, valueof the service, promotional or other rate making poli-cies or any demand factors affecting the levels of rates.(Costing procedures and the cost centers would not varyeven if there were no tariff and all services wereprovided free).
4. Many costs can be assigned directly to the activities forwhich they are incurred. In other cases the costs may bereasonably apportioned on the basis of the beneficialuse theory whereby the beneficiary or user of a functionis charged objectively with the proportion of the totalcosts of that function according to the degree of use,if this is necessary.
5. Cost finding should be done periodically, not continuously,based on the uses made of all facilities over the periodto be costed, as reflected by special statistics maintainedfor the purpose. It must be carried out separately fromthe continuous day-to-day accounting procedures, by anindependent section.
September 1976
ANNEX 10Page 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Recommended Changes in the Tariff Structure
The following changes in tariff structure are recommended:
1. Harbor Dues
The unit of measurement could be modified from vessel cubicmeters to gross registered tons, which is a recognized andrecorded measure of vessel size. A single charge withoutreference to time should be used for each entry/departurecombined. The time spent in port is a factor better coveredby the berthing-mooring charges.
2. Berthing Dues
The 50% increase in berthing charges applicable after 4 daysshould be eliminated. It is not effective for its assertedpurpose of hastening loading and unloading and thereforeships departure; this time distinction is seldom the decid-ing factor in the duration of berth occupancy. A simplecharge per day is more appropriate. Clarity and simplicitysuggests the use of gross registered tons per day or frac-tion, rather than meters of ship length per day.
3. Wharfage
A single charge per ton of dry bulk, liquid bulk 1/ andgeneral cargo, should be made for the use of port facilitiesin its passage over or through the port, exclusive of cargohandling. This should include both direct loaded/unloadedcargo and cargo coming to rest in shed or open areas.Wharfage charges per head of livestock, as at present,should be retained.
1/ Other convenient measure may be used.
ANNEX 10Page 2
4. Storage
The present tariff for storage encourages the use oftransit sheds for long-term storage and contributes tocongested sheds and reduced port throughput. Throughout1975 about 450,000 tons of dry cargo were being held, andfor the first six months of 1974, storage revenues totalled40% of total operating revenues, further increasing to 62%during the first six months of 1975. The tariff clearlyrequires modification to induce more rapid clearance ofcargo from transit sheds by introduction of a significantpenalty factor, after a reasonable 5-day free time period,which would be progressive with time during the first 15days, and with more substantial increases for each day fromthe sixteenth to the thirtieth. The tariff for warehousesshould be reviewed and if necessary, amended, to includerates for long-term warehousing at lower charges thanthose for transit sheds.
September 1976
ANNEX 11Page I
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Explanatory Notes on Balance Sheet Datafor March 31, 1973; December 31, 1973; and December 31, 1974
(Table 15)
Current Assets
1. Cash. This is cash on hand and in banks, with separate balancesmaintained for local and foreign currencies.
2. Accounts Receivable. Consists of separate accounts receivable(rupiah accounts) and accounts receivable (dollar accounts); a reservefor doubtful accounts is recorded.
3. Loans and Advances:
(a) advances made to staff and others;
(b) advances made to Departments of the Port priorto receipt of supporting vouchers and statements;
(c) loans and advances to other ports;
(d) other transactions with small ports;
(e) current account with the subsidiary terminal unit;
(f) current account with the lighterage section; and
(g) current account with the employees' co-op societies.
Liabilities
1. Current Liabilities
Salaries and wages payable. The balance normallyrepresents salaries and wages earned but not paidbefore the end of the year.
Accrued expenses. The balance represents expensesincurred but not paid before the end of the year.
ANNEX 11Page 2
Miscellaneous creditors. This account includes (a)sales taxes, (b) staff income tax, and (c) tax deductedor recovered from bills of suppliers and contractors,and other items collected for and to be remitted tothe Government. This account includes advancepayments made by the Directorate of Ports and Dredg-ing in DGSC.
Deposits and advances. This account consists of:
(a) revenue/advances deposit account-foreign currency;which represent advances of foreign currencycollected from shipping companies which areadjusted when bills are paid;
(b) compulsory deposit account. These are amountsdeducted from staff salaries and owed or as yetnot remitted to the Government;
(c) security/earnest money deposit account collectedfrom lessees of land and buildings only;
(d) revenue advance deposit account includes moneycollected from shipping companies and thirdparties; advances in respect of lighterage areincluded;
(e) accounts with other ports;
(f) contributions to official staff associationdeducted from staff salaries but still unpaid; and
(g) deposits for supplies or services received fromother ports or third parties; tax payable by theport on supplies and services received, andusually recovered from the suppliers/contractorsbills. Balance represents amount due theGovernment.
Account with the Government Treasury. This representsthe credit balance in the port's general account withthe Government, except for the deposit of working capital.
2. Provision for Income Taxes. This account shows the aggregateamounts payable for income taxes over the years, (45% of netincome). It has not been reduced for payments made, as itshould be. At present, monthly payments or installments aremade on the basis of 2% of monthly gross revenues.
ANNEX 11Page 3
3. Pension Fund and Compensation Payments, and Contribution forPension. The former of these combined accounts representsthe accumulated sum of the required payments (10% of surplus(net income) after taxes). Paid amounts, if any, are creditedto the account with the Government Treasury Department. Thesecond part of this balance sheet heading represents the lia-bility of the port for its contributions to pension payments.
4. Revenue Reserves. These "revenue" reserves consist of thefollowing and include for some reason item (d) referred tobelow:
(a) Bonus Reserve, represents 5% of net income accumulatedover the years - for disbursement of bonus to employees.
(b) Social Welfare Reserve, represents the accumulated amountover the years made up of 10% of the surplus (net income)after taxes, supposedly to be employed for the socialbenefits and welfare payments for staff.
(c) General Reserve represents the accumulated balances ofyearly calculations at 20% of surplus (or net income)after taxes.
(d) General Development Reserve as made up of the aggregateamounts due to the Government for the development ofIndonesia; the yearly amounts due are 55% of surplusafter taxes (30.25% of net income). It representsthe historical liability of the port without regardto payments made which presumably are credited to theaccount with the Government Treasury.
5. Capital Reserve, generally represents the cost of capital assetsdefrayed from the port's own resources.
6. Capital-Initial is the amount of capital provided by the Government,in the first instance.
7. Revaluation Reserves represents the increase in value of capitalassets as a result of the 1973 revaluations. Since the fixed assetsinclude land and capital dredging, so does the revaluation, inTable 17.
September 1976
ANNEX 12Page 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Assumptions Used in Financial Forecasts
I. Income Accounts
The estimated revenues, expenses and net income provided in
Table 14 are based on the following estimates and assumptions:
(i) the investment program and project data set forthin Table 2 for 1976-83;
(ii) increase of expenses, excluding depreciation based upon
12% annual inflation in 1977, 1978, and 1979 and 10% p.a.thereafter. Overall increase in tariffs of 10% on Septem-
ber 1, 1979 and 20% on September 1, 1980;
(iii) modification, as of January 1, 1979, of the ratesand charges for storage as recommended by consultants,
following (a) reorganization of the port, (b) deter-mination of the costs of each function by consultants
and (c) the establishment of a cost-based tariff.
It has also been assumed that the practice of paying
10 to 20% of storage charges to cargo-handling com-
panies will be found to be inappropriate as a resultof the costing procedures herein recommended. To
be conservative, no concession fees have been in-cluded in port revenues;
(iv) annual maintenance costs of structures, lands and roads
subsequent to 1976 have been estimated on the basis of3% of the gross depreciable value of old assets in use
(estimated at Rp 15 billion) plus 1-1/2% of the grossdepreciable value of newer assets being the balance in
use as per the previous December 31 balance sheet values;
(v) depreciation expense for additions of depreciable
assets during the period 1976-82 has been estimatedon the basis of an average life of 20 years or 5% p.a.;
(vi) forecast revenues are related to the trafficforecasts for each year in respect of:
ANNEX 12Page 2
(a) number of vessels;
(b) total m of vessels (when the tariff is revised togross registered tons as previously recommended, cashproduced is not expected to vary significantly);
(c) average length of stay in port and on berthseparately indicated for the deep-sea harborand Regional harbor in respect of general ,cargo; and separately for wheat, fertilizer,fodder, cement, vegetable oils and petroleumproducts; and
(d) container revenues have been estimated at the
equivalent of US$50 for each container handled,
loaded and empty.
(vii) forecast expenses have been related to traffic invarious ways as follows:
(a) towage, mooring and berthing, pilotage, dry-dock expense, salvage operations, operationand maintenance of barges and tugs, electricity
and general facilities expense have been related
to the numbers of vessels each year;
(b) water supplv has been estimated based on the
projected m or tons of water related to ves-
sel sizes;
(c) operation of cargo equipment, expenses of the
terminal unit and the maintenance of land,
roads and structures have been projected on
the basis of future dry cargo traffic; and
(d) no change has been assumed for costs of fire brigade,
dredging, and storage.
II. Balance Sheet Data
The estimated balance sheet data shown in Table 17 are based on
the following principal assumptions that:
(i) the port will be established as part of a Perum, (para 3.04)
as of June 30, 1978;
ANNEX 12Page 3
(ii) the long-term debt for development of the port includingthe ADB loan of 1972, the proposed IBRD loan in 1976 anda second phase loan (Table 2) will be made availableby the Government to the port at 12% interest p.a. andotherwise on the same terms as these loans to the Govern-ment; and
(iii) additional funds will be obtained amounting to Rp 17,297million during the 1976-1982 period either by local loansor government equity grants. The latter method has beenassumed for purposes of the financing plan (para 6.18).
III. Cash Flow Data
The estimated cash flow data in Table 17 are based on the followingprincipal assumptions that:
(i) obligations of BPP to the Government consisting of unpaidtaxes and contributions to the NDF, as well as the revalua-tion tax will be paid by BPP to the Government in four equalinstallments in 1977 through 1980;
(ii) the funds owed to BPP by the Government and its agencies(including state enterprises) for past port services wouldbe made available to BPP in equal amounts during the fis-cal years 1977 and 1978; and
(iii) that Government equity payments (Para II (iii)) will besufficient each year to provide BPP with cash workingcapital equal to about 12 1/2% of annual working expenses.
September 1976
ANNEX 13Page 1
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Plan of Action for BPP
1. Organizational Policy for BPP. BPP shall have exclusive respon-sibility for the management and operation of its assets (including procure-ment), for the selection of its officers and staff within the approved estab-lishment level, for the planning and implementation of its future development,subject only to a reasonable degree of supervision by or on behalf of theBorrower or the Perum and approval by the Borrower of BPP's annual budgets.BPP shall have timely access to sufficient liquid funds to carry out itsday-to-day operations and its development programs.
2. BPP's Organization and Port Operating Procedures. The Borrowershall take and cause BPP to take the following measures which are designedto improve the efficiency of BPP's organization and the operating proceduresin Tanjung Priok port:
(a) The Port Administrator, shall be given authority to disposeof scrap material in the port by auction, subject only tothe approval of the MOC of the Borrower which shall not beunreasonably withheld;
(b) BPP's operational and maintenance departments shall be re-structured in line with the regrouping of the port's opera-ting companies in accordance with the provisions of paragraph2 (d) (iii) of this Annex, and the section heads in thosedepartments shall be given greater day-to-day decision-makingauthority, including the procurement and storage of spareparts, all within the framework of established policies andbudgets;
(c) BPP's planning and project bureau shall be separated fromBPP's maintenance department and be established and maintainedas a new department of BPP, with adequate qualified staff;
(d) The port's operating procedures shall be improved as follows:
(i) the port shall be divided into operational areas forcargo-handling operations, as may be agreed betweenthe Borrower, Bank and the BPP, each such area toinclude the transit sheds and warehouses serving theberths within its limits and to be enclosed by aCustoms fence with control gate; each such area shallbe a separate Customs area;
ANNEX 13Page 2
(ii) within each such area unrestricted movement between transitsheds and warehouses shall be permitted for all cargoremaining in the sheds beyond the free period, subjectonly to notification to (not permission of) Customs;
(iii) the allocation of sheds to operating companies oneach pier shall be rearranged so that sheds allo-cated to one comany shall, to the extent possible,be adjacent. Such rearrangement shall be completedwithin two years from the Effective Date, except asmay be agreed between the Bank and BPP. The amal-gamation of operating companies being arranged inthe Nusantara basin area shall, if successful, beapplied as speedily as possible to the remaining areasof the Priok Port;
(iv) the warehouses situated in the Perahu basin shall bedesignated as separate storage areas for the long-termstorage of such goods as BPP shall determine; movementof goods to such warehouses shall be done by forward-ing companies after obtaining permission of Customs;
(v) delivery of goods from any area to the consignee shallbe made by the forwarding company of the consignee'schoice, following Customs clearance;
(vi) in licensing the operating companies or newly formedassociations of operating companies, BPP shall requirethem to improve their productivity by increase use ofmechanical equipment after palletization of cargo inthe ships' hold, on the quay, in the transit shedsor open storage areas and in subsequent transfer tothe warehouse. The Borrower shall take all actionnecessary to achieve the introduction of the measuresand policies described in this sub-paragraph (d) ex-cept sub-paragraph d (iii) not later than June 30, 1978,or such later date as shall be agreed between the Bor-rower and the Bank; and
(e) The Borrower shall cause BPP to implement within 24 monthsimmediately following the Effective Date, or such longerperiod of time as the Bank may agree, those recommendationsmade by the team of specialists from the port of Amsterdam,included in that team's fifth progress report dated April16, 1975, which are acceptable to the Borrower.
ANNEX 13Page 3
3. Customs Procedures. Upon completion of the study of existing Cus-toms procedures in Tanjung Priok port, the Borrower shall furnish to the Bank acopy of the study and shall, after having exchanged views with the Bank on thestudy, implement such recommendations emanating from the study as shall benecessary for the improvement of such Customs procedures as shall be satis-factory to the Borrower and the Bank.
4. Accounting and Costing
(a) The Borrower shall cause BPP to further improve itsaccounting system, inter alia: by establishing generalledger budget centers, or functional departmental accounts;by accounting for expenses by types of expenses; by con-solidating its asset valuation methods and depreciationaccounts to exclude inconsistencies; and by discontinuingthe use of the detailed classification of accounts to assignexpenses to revenue centers, as a basis for cost finding.
(b) The Borrower shall cause BPP to introduce a costing system,satisfactory to the Borrower and the Bank, which shall bein accordance with the following principles:
(i) the costing system shall be objective and thereforewithout reference to or consideration of presenttariffs, kinds or levels of rates and without refer-ence to ability to pay, value of the service, pro-motional or other rate making policies or any demandfactors affecting the levels of rates;
(ii) the costing system shall be reasonably apportionedon the basis of the beneficial use theory wherebythe beneficiary or user of a function is chargedobjectively with the proportion of the total costsof that function according to the degree of use.Many costs can be assigned directly to the activi-ties for which they are incurred;
(iii) cost findings should be done periodically, not con-tinuously, based on the uses made of all facilitiesover the period to be costed, as reflected by spe-cial statistics maintained for the purpose. It mustbe carried out separately from the continuous day-to-dayaccounting procedures, by an independent section; and
(iv) the costing system shall be comprehensive and shallinclude, inter alia, the determination of the costsincurred in cargo handling.
ANNEX 13Page 4
5. Strengthening of Financial Accounting Staff. The Borrower shallcause BPP to strengthen its financial accounting staff in a manner satis-factory to the Borrower and the Bank, based on the recommendations to bemade by BPP's accounting consultants.
September 1976
TABLE I
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
List of Operating Companies and Sheds Allocated
Company Shed Number and LocationNo. Nusantara Basin I Basin II Basin III Operating Company
1 - 001 P.T. Abadi Lines
2 - 002 P.T. Nagah Berlian
3 - 003 P.T. Pelpn.
4 - 004 U P.T. Kalimantan
5 - 005 S P.T. I.O.L.
6 - 101 P.T. Tanjung Lines
7 - 102 P.T. Pelni
103 II of104 it
105106 it
8 - 109 -202 U P.T. Wasesa Lines
9 - 110 Team Management 110 (INSA)
10 - ill P.T. Sriwijaya Lines
11 - 112 U P.T. Bahari Lines
12 - 112 S P.T. Admiral Lines
13 - G.G. P.N. Garam
14 - 201 U, 203 U
204, 207 Unit Usaha Terminal BPP
15 - 201 S P.T. Karana Lines
16 - 202 S, 212 P.T. Bahtera Adhiguna
17 - 203 S - 305, 306, 307 P.T. Trikora Lloyd
18 - 205, 206 - 304, 305 P.T. Jakaeta Lloyd
19 - 208, 209 P.T. Gesuri Lloyd
20 - 210 P.T. Samudera Jaya Lines
21 - 211 - 310 U P.T. Arafat Lines
22 - 301 S, 302, 303 P.T. Samudera Indonesia
1/ Where the shed is referred to as "U" or "S" the occupancy of the shed
is divided between two companies.
Source: BBP
February 1976
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Capital Investment Program 1976-83
(Rp millions)
Expenditure 1976-1983Prior to 1976 1976 1977 1978 1979 1980 1981 1982 1983 Total
ADB-financed Project 3,035 1,250 415 - - - - - - 1,665
Phase I Project 3,100 5,115 11,720 10,510 2,470 - - - - 29,815
Phase II Project - - - - 5,100 10,000 12,900 11,000 10,700 49,800
Minor Construction 1,195 770 420 560 415 415 415 415 415 3.825
TOTAL 7,330 7,135 12,555 11,070 7,985 10,415 13,315 11,415 11,115 85,105
Source: Bank Staff
August 1976
to
TABLE 3INDONESIA
APPRAISAL OF TANJUNG PRIOR PORT PROJECT
Detailed Cost Estimates
Item Rupiah Million us$'000
Local Foreign Total Local Foreign Total
A. Civil Works
Basin III 1,650 1,3149 3,009 4,000 3,250 7,250
Regional Harbor 1.514 1,453 2,967 3,650 3,500 7,150
Road Access Improvements 664 622 1,286 i,600 1,500 3,100
Housing Site Services 207 207 414 500 500 1,000
Sub-Total 4,045 3,631 7,676 9,750 8,750 18,500
B. Mechanical Equipment
Container Cranes 33 1,627 1,660 80 3,920 4,000
Mobile Container Handling Equipment 16 1,104 1,120 40 2,660 2,700
General Cargo Handling Equipment - 938 938 2_6 2,260
Sub-Total 49 3,669 3,718 120 8,840 8,960
Weighbridge 4 124 128 10 300 310
Training School Equipment 12 120 132 30 290 320
Sub-Total 16 244 260 40 590 630
C. Technical Assistance & Training
Accountancy 14 150 164 37 360 397
Labor 37 222 259 8f9 535 624
Management and Planning 51 155 206 124 375 499
Steel Mill 9 95 104 20 230 250
Sub-Total 111 622 733 270 1,500 1,770
D. Engineering Consultants and Services 332 976 1,308 800 2,350 3,150
Base Cost Estimate 4,557 9,142 13,699 10,980 22,030 33,010
Physical Contingencies 801 1,108 1,909 1,930 2,670 4,600
Price Contingencies a 3,030 3500 '10,800
Sub-total Bank-Financed Items 6,810 13,280 20,090 16,410 32,000 48,410
E. Government-Financed Works
Basin III Construction 5,245 3,960 9,205 12,640 9,550 22,190
Lease Acquisition and Compensation 830 - 830 2,000 - 2,000
Housing Land Acquisition and Housing Const. 2,500 - 2,500 6,000 - 6,000
Sales Tax 290 - 290 700 - 700
PROJECT TOTAL 15,675 17,240 32,915 37,750 41,550 79,300
Source: Bank Staff
August 1976
TABLE 4
IDONESIA
APPRAISAL CF TANJUNG PRICK PORT PROJECT
Contracts for Execution od Bank-F1jmced Project Works
Civil Works
Le Back-up facilities for general cargo, combination and container berths
under construction by Government in Basin III.
II. Berths and back-up facilities in Regional Harbor (Perahu Basin).
III. Improvements to external road access and entrance gates to the port and
to access roads bn piers between Basins I and II and Basins II and III1
TV. Housing services.
Mechanical Eauipment Procurement
I. Container 6ranes
II. Mobile container handling equipment
III. Mechanical general cargo handling equipment and equipment required
for the training schools.
Source: Bank Staff
March 1976
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Construction Schedule
1976 1977 1978 1979
Container Cranes
Mobile Container Equipment 4 __ __
Basin III Civil Works 4
Regional Harbor Civil Works __|_*________|
General Cargo Equipment ,
Road Access improvements |
Technical Assistance _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Engineering ___
Contract Award 8 Container Wharf Apron available * Completion -- disbursement overrun after contract completion
Source- Bank Staff
February 1976
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Annual Estimated Project Expenditure
(US$ Millions)
Cost Est. Prior to 1976 1976 1977 1978 1979
Basin III Civil Works 13,550 - 500 5,100 6,100 1,850
Special Tests 150 - 150 - - -
Container Equipment 9,020 - 800 5,400 2,820 -
General Cargo Equipment 3,680 - - 1,250 2,430 -
Regional Harbor Civil Works 12,320 - - 3,750 6,920 1,650
Land Access Improvement 5,490 - - 1,140 3,400 950
Housing Services 1,500 - - 200 900 400
Technical Assistance & Training 2,700 - - 750 950 1,000
Sub-total Bank-Financed Project 48,410 - 1/ 1,450 17,590 23,520 5,850
Government-Financed Works Basin III 22,190 7,470 9,870 4,850 - -
Land and Lease Acquisition & Housing 8,000 - 1,000 5,500 1,500 -
Sales Tax Cons. 700 - - 300 300 100
PROJECT TOTAL COST 79,300 7,470 1/ 12,320 28,240 25,320 5,950
1/ Balance spent before 1976 - US$5.2 million in 1975 and 2.27 million in 1974.
August 1976
INDONESIA TABLE 7
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Disbursement Schedule(US$ Millions)
Bank Fiscal Year Quarter Amount Disbursed Cumulative Total
1977 2nd 1,000 1,000
3rd 1,500 2,500
4th 3,300 5,800
1978 1st 3,500 9,300
2nd 3,600 12,900
3rd 4,500 17,400
4th 4,900 22,300
1979 1st 3,100 25,400
2nd 3,000 28,400
3rd 1,600 30,000
4th 1,100 31,100
1980 1st 500 31,600
2nd 400 32,000
August 1976
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Traffic Projections 1976 - 85('000 metric tons)
1976-1985Compound Annual
1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 Growth Rate (%)
GENERAL CARGO
- Imports 2,480 2,600 2,630 2,690 2,680 2,740 2,850 3,090 3,340 3,600 3.9
- Exports 130 140 140 140 140 140 140 140 140 140
Total Foreign General Cargo 2,610 2,740 2,770 2,830 2,820 2,880 2,990 3,230 3,480 3 740 3.8
- Inter-island inbound 530 620 730 850 990 1,140 1,280 1,450 1,630 1,830 15.0
- Inter-island outbound 460 530 610 700 800 920 .04 1,170 1.,320 1,480 14.0
Total Inter-island General Cargo 990 1,150 1,34 1.550 1.790 2,060 2,320 2.620 2,950 3,310 14.5
TOTAL GENERAL CARGO 3,600 3,890 4,110 4,380 4,610 4,940 5,310 5,850 6.430 7.050 7.5
HOMOGENEOUS DRY CARGO
- Wheat 440 480 520 570 620 670 730 800 870 950
- Fertilizer 400 400 400 350 300 300 300 300 300 300
- Cement 900 650 350 300 250 320 420 550 650 800
- Fodder exports 20 50 50 50 50 50 50 50 50 50
TOTAL HOMOGENEOUS DRY CARGO 7 760 1.580 1.320 1.270 1,220 1.340 1.500 1,700 1.870 2.100
TOTAL DRY CARGO 5,360 5,470 5,30 5,650 5.830 6.280 6,810 7,550 8.300 9.150
PETROLEUM PRODUCTS 3,400 3,550 3,775 4,000 4,250 4,550 4,850 5.200 5,575 6.000
VEGETABLE OILS 80 100 130 140 150 150 160 160 170 180
Sources: Swan WoosterBank Staff
March 1976
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Port Traffic 1970 - 75
('000 metric tons)
1970-1975
1975 Compound Annual
1970 1971 1972 1973 1974 (Est) Growth Rate (%)
GENERAL CARGO
- Imports (1) 1,845 1,835 2,135 3,028 2,603 2,456 5.9
- Exports 215 197 217 134 148 122
Total Foreign General Cargo 2,060 2,032 2,352 3,162 2,751 2,578 4.6
- Inter-island Inbound 201 218 269 296 360 453 17.7
- Inter-island Outbound 197 205 278 434 441 400 15.2
Total Inter-island General Cargo 398 423 547 730 801 853 16.5
TOTAL GENERAL CARGO 2.458 2.455 2.899 3,892 3,552 3,431 6.9
HOMOGENEOUS DRY CARGO
- Wheat, wheat flour 181 134 84 294 280 410
- Fertilizer 52 45 164 175 422 400
- Cement 293 529 675 965 1,173 1,100
- Fodder exports 4 - 19 33 8 4
Total Homogeneous Dry Cargo 530 708 942 1,467188 1 914
TOTAL DRY CARGO 2,988 3,163 3,841 5,359 5,435 5,345
PETROLEUM PRODUCTS 1,923 1,908 2,308 2,460 2,955 3,320
VEGETABLE OILS 2 6 30 34 59 65
Notes: 1. Includes:
(a) Rice 484 210 291 741 403 360
(b) Construction Steel n/a n/a 200 400 600 500
(c) Other (incl. con- 1,361 1,625 1,644 1,887 1,600 1,596
tainerized cargo)
Sources: Tanjung Priok PortSwan-Wooster
March 1976
TABLE 10
INDONESIA
APPRAISAL OF.TANJUNG PRIOK PORT PROJECT
Economic Costs and Benefits ($'000)
Economic Benefits
Year Economic Costs Ship-Waiting Labor TotalTime Cost
1974 1,6001975 3,9001976 8,8001977 18,5001978 21,0001979 6,000 2,500 100 2,6001980 3,000 200 3,200
1981 6,000 100 6,100
1982 14,000 200 16,000
1983 20,000 100 20,100
1984 20,000 200 20,200
1985 20,000 100 20,100
1986 20,000 200 20,200
1987 20,000 100 20,100
1988 20,000 200 20,200
1989 20,000 100 20,100
1990 20,000 200 20,200
1991 20,000 100 20,100
1992 20,000 200 20,200
1993 20,000 100 20,100
1994 20,000 200 20,200
1995 20,000 100 20,1001996 20,000 200 20,200
1997 20,000 100 20,100
1998 20,000 200 20,200
Total Economic Costs 59,800
Items omitted: Price Contingencies 10,800Lease Acquisition etc. (incl.housing construction relatingto Phase II project) 8,000Sales Tax 700
Total Project Cost 79,300
Source: Bank Staff
October 1976
TABLE 11
INDONESTA
APPRAISAL OF TANJUNG PRIOK PORT PRO3ECT
Summary of Principal Port Tariffs
Present TariffEffective July 1974
Tariff Item Unit Rp. US$
I. Harbor Dues(a) Merchant ships-tankers 1,000 m3 per day 2,400 5.78
(b) Self propelled barges 800 2.00
(c) Non commercial calls " 600 1.45
(d) For repairs only 240 0.58(e) Operating harbor area only
Vessels 48 0.12
Barges 16 0.04
II. Berthing-Mooring ChargesA. First four days Meters of length per day
(i) Concrete wharf " 442 1.07(ii) Iron-wood wharf " 306 0.74(iii) Coastal " 75 0.18
(iv) Mooring at buoys Vessel/day 221 0.54
B. After four days(i) Concrete wharf Meters of length per day 663 1.61
(ii) Iron-wood wharf 459 1.11(iii) Coastal 112.5 0.27
(iv) Mooring at buoys Vessel/day 221 0.54
III. WharfageA. Rice, wheat, corn,
bulgur, sugar, saltand fertilizer Per meter ton 14
B. Commodities,other thanin A Metric ton/or m3 30/20
C. LivestockHorses, cattle, etc. Per head 30Goats, swine, sheep,etc. " 15
D. Pipeline-liquid bulkcargo Per 1,000 liters
(i) Light cargoRefined petroleumproducts
Coconut, peanut andpalm oil 13
(ii) Heavy cargoCrude oil, latex,Molasses, etc. " 8
TA L11Page 2
Present TariffEffective July 1974
Tariff Item Unit Rp. US$
IV. Water Supply to vessels Per m3 or metric tonA. Official working hours
(i) By wharf pipeline Min. 10 tons 330 0.795(ii) By water barge " 50 tons 500 1.205
B. After office hours(i) By wharf pipeline " 10 tons 495 1.1192(ii) By water barge " 50 tons 750 1.807
First 15 After 15days daysRp. Rp.
V. Storage Whichever higherA. First line
(i) Transit sheds Metric ton or 100 200m3 per day 70 140
(ii) Open areas Metric ton or 50 100m3 per day 35 70
B. Second line(i) Warehouses Metric ton or 50 100
m3 per day 35 70(ii) Open areas Metric ton or 25 50
m3 per day 18 36C. Dangerous cargo
(i) First line(a) Transit sheds Metric ton or 120 240
m3 per day 84 168(b) Open areas Metric ton or 60 120
m3 per day 42 84(ii) Second line
(a) Warehouses Metric ton or 60 120m3 per day 42 84
(b) Open areas Metric ton or 30 60m3 per day 21.6 43.2
VI. Land Rental(For industrial/commercial 2buildings) Per m per yearA. Within 100 m of
deep water 1,000B. Within 100 m of
shallow water " 800C. Central area 600D. Submerged land " 100
TABLE 11Page 3
Present TariffRp. US$
Regular RegularTariff Item Unit hours Overtime hours Overtime
VII. Equipment RentalsA. Derrick/Cranes
1. Land: Mobile Per hourup to 3 tons capac. " 1,700 2,550 4.10 6.153 to 7 tons " 3,895 5,842.5 9.40 14.107 to 15 tons " " 5,666 8,499 13.65 20.48over 15 tons " " 8,500 12,750 20.50 30.75
2. Electric cranesup to 3 ton capac. Per hour 2,405 3,607.5 5.80 8.703 to 7 tons " " 4,250 6,375 10.25 13.375Over 7 tons " " 6,018 9,027 14.50 21.75
3. Floating cranes(including tug)up to 10 tons Per hour 6,370 9,555 15.35 23.0311 to 15 tons " 12,750 19,125 30.75 46.1316 to 30 tons 29,300 43,950 70.60 105.9031 to 40 tons 36,900 55,350 88.90 133.3541 to 75 tons " 85,000 127,500 204.80 307.2076 to 200 tons 127.560 191,340 307.40 461.10
B. Vessels1. Fire vessel brigade Per hour 25,000 37,500 60.25 90.382. Motor boats:
up to 60 H.P. 8,360 12.540 20.15 30.2360 to 200 12,350 18,525 29.75 44.63
3. Barges Per ton/cargo. 200 300 0.48 0.72
C. ForkliftsUp to 2 tons Per hour 1,700 2,550 4.10 6.152 to 3 tons " 2,280 3,420 5.50 8.253 to 5 tons 2,650 3,975 6.40 9.605 to 10 tons " 4,630 6,945 11.20 16.80
D. TugsUnder 60 H.P. Per hour 10,680 25.7560 to 150 H.P " 16,080 38.75150 to 250 H.P. " 31,970 77.00250 to 500 H.P. It 47.840 103.25Over 500 H.P. " 69,325 155.00
Source: BPP
March 1976
TABLE 12
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Fixed Asset ValuesSecond Revaluation of 1973
(Rp 000)Used by Port Annual Deprecia- % Future Annualsince 1973 tion based on Depreciation
remaining life
A. Land 21,640,000 216,400 1.00 1/Roads (inside port area) 315,416 60,846.1 19.29Roads (outside port area) 152,476 - _
Total Land and Roads 22,107,892 277,246.1 1.25
B. Ducts and drains 124,645 19,239.8 15.4
C. Port/harbor and breakwater 5,695,365 493,992.2 8.67
D. Canals bridges, sluices 110,240 31,514.7 28.59
E. Quays and open areas 3,771,707 362,258.8 9.60
F. Buildings, sheds houses and fencesPermanent 2,198,157 491,397.2 22.35
Semi-permanent 32,489 9,883.1 30.41
G. Vessels 526,772 166,541.6 31.62
H. Derricks and their rails 84,194 13,454.3 15.98
I. Drydocks and floating docks 6,701 2,034.3 32.94
J. Vehicles 53,432 18,890.5 35.35
K. Water System 58,660 7,085.7 12.08
L. Electrical System 97,184 10,273.5 10.57
M. Machinery toolsand equipment 69,696 12,577.2 18.05
N. Office furniture, equipmentand fixtures 15,742 9,677.6 61.48
Total 34,952,377 1,926,067.1 5.51
Excluding Category A,Totals B-N included 12,844,485 1,648,821.0 12.84%
1/ Land is not a depreciable asset; and no depreciation shourld be recorded.
Source: BPP
March 1976
TABLE 13
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Summary of Wage Increases Since 1973
Increase in Minimum Rp.Date Basic Wage Per Month
April 1, 1973 150% Establishedat Rp. 1750
April 1, 1974 250% 2,500
July 1, 1974 350% 7,500
January 1, 1975 650% 10,000
April 1, 1975 750% 10,000
Basic salaries are increased by the percentages and for the
reasons,shown below:
1. 5% added as a wife allowance
2. 2% added as a family allowance
3. 10% added as a cost of living allowance
4. 50 to 100% added for various educationalcertificates
5. 30% added as a corporation allowance.
Source: BPP
March 1976
TABLE 14
INDONESIA
APPRAISAL OF TAINJUNG PRIDO PORT PROJECT
Income Accounts: Revenues, Expnses and Net InomeActual 1972/73-1975 Estimted 1976-1982
(Epa Millions)
Actual Estimated12 Months Apr-Dec 12 Monthe 12 Months
1972/73 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982Operating Revenues
Harbour Duos 345 266 683 787 861 851 883 942 1,004 1,073 1,171Piootnge 33 31 141 394 400 416 442 469 500 537 585Toving Moo-ing 96 91 286 582 564 599 638 682 729 791 855Quay Duos 265 217 683 1,429 1,425 1,395 1,421 1,457 1,483 1,535 1,631Ded8ing8 65 - - 444 - - - - -Water Supply-Ships 150 154 177 245 238 236 243 258 277 296 320Bsrgo Rontal 4 5 3 156 162 162 162 162 162 162 162Cergo-handliog Equipnent i11 82 153 124 129 138 143 148 152 160 168Whorfage - - - - 178 186 193 603 613 628 644soran-ag 455 938 4,520 9,917 10,317 11,039 11,488 10,250 10,286 10,464 10,695Truck Entry F.oo 170 87 178 231 240 244 248 251 259 279 302Torsinal Unit 382 253 1,326 1,344 1,397 1,400 1,391 1,430 1,470 1,549 1,636Land, Building Rentals 268 111 712 1,051 1,384 1,384 969 969 969 959 969Miac-Ilanoous Revenues 6 73 166 181 188 197 202 212 221 238 256Hn_dling Containers - - 519 1.176 1591 1,971 2,421Subtotal Operating Revenu- s 2,350 2,300 9,028 16,885 17,483 18,247 18,942 19,009 19,716 20,652 21,815
Rovocue arising froc Tariff AdjoetnentsAsnoning equivalest of 107. overll - Sept 1, 1979 - - - - - - - 633 1,972 2,065 2,181Annuning equivalent of 207 overall - Sept 1, 1980 - - - - - - --- z 446 4,543 4.800
Total Op-rating Revenues 2,350 2,300 9,028 16,885 17,483 18,247 18,942 19,642 23,134 27,260 28,796
Operatiog Expenses
Toge Mooring and Berthing 98 103 212 462 448 476 506 541 579 628 679Pilotafg 13 21 41 117 113 128 128 137 146 158 171Drydocking 10 17 21 47 48 50 53 57 61 66 71Water Supply-Ships 90 115 239 495 630 626 644 686 732 785 857Fire Brigade 27 31 44 43 48 48 48 48 48 48 48Salvage, Ihoder.-ter Repairs, Rescue - - 9 26 25 27 29 31 34 36 39DrOdgi.g 228 198 373 654 654 654 654 654 654 654 654Casto Equipment 47 48 114 172 171 174 171 177 182 196 214Bar~ges and Tugs - - 17 144 140 148 138 169 181 196 212Cargo Move-et, Storage-Sheds Open Areas 8 37 239 1,329 1,329 1,329 1,329 1,329 1,329 1,329 1,329Warehousing - - 6 323 373 323 323 323 323 323 323Cargo-handling Terminal Unit 221 - 890 395 1,257 1,260 1,252 1,287 1,323 1,394 1,472Maint.en..e-Structure-, Lend, Roads 79 204 453 2,002 1,988 478 541 640 946 1,013 1,095Electrical Facilitins 109 - 230 372 361 383 408 436 467 506 547General Facilities - - 45 40 38 41 43 46 50 54 58Adoinist-atio-G-.enr l Expense 602 419 1,353 1,703 1,703 1,873 1.910 1.948 1,987 2 027 2,068Total Working Expenses 1,532 1,193 4,286 8,324 9,276 8,010 8,197 8,519 9,042 9,413 9,837
Add Assuned Inflation of 12% 1977 - - - - - 961 984 1,021 1,035 1,130 1,180127. 1978 - - - - - - 1,102 1,144 1,215 1,265 1,322127, 1979 - - - - - - - 1,281 1,361 1,417 1,481107, 1980 - - - - - - - - 1,270 1,323 1,382107. 1981 - - - - - - - - - 1,455 1,520107 1982 ___-- - - 1,672.
Adjusted Total Working Expenses 1,532 1,193 4,286 8,324 9,276 8,971 10,283 11,955 13,973 16,003 18,394Deprec-itian 51 695 985 1,775 1.855 2,010 2J310 2.955 3Z578 3,826 4j134Total Operating Expenses 1,583 1,888 5,271 10,099 11,131 10,981 12,593 14,910 17,551 19,829 22,528
Net Operating Revenues 767 412 3,757 6,786 6,352 7,266 6,349 4,732 5,583 7,431 6,268Net Non-operating R.evenua 171 (46) 166 392 200 280 100 50 - - -Interest Long-term Debt - - - - 229 502 1,018 2,003 2,826 3,526 4,327Net Incone before Taxes etc. 938 366 3,923 7,178 6.323 6,964 5,431 2,779 2,757 3,905 1,941Isctae Tam (457,) 422 165 1,765 3,230 2,8452 3,134 2,444 1,250 1,241 1,757 873Revaluation Tax - - - - 3,368-/ - - - - - -Net Income after T.eno 516 201 2,158 3,948 110 3,830 2,987 1,529 1,516 2,148 1,069Cantribution to Nation-l Develop.not Fund (30.257,) 284 111 1,187 2,171 1,913 2,107 1,643 841 834 1,181 587Ntt InTono (Ltos) 232 90 971 1,777 (1,803) 1,723 1,344 688 682 967 481Retina Dperating 67 82 58 60 64 60 66 76 76 73 78
Tines Interest Eamed (Operations) - - - - 27.7 14.5 6.2 2.3 2.0 2.1 1.5Return on Net Operating Revenues 61.9 1.6 11.1 19.8 18.3 20.2 16.2 9.4 9.4 12.2 10.0Return after T.s 3/ 27.8 1.0 5.9 10.4 10.1 9.1 7.8 5.3 5.8 9.3 8.7
I/ Total revenue under this heading assumed to reduce is 1979 onuards by sot Rps 1.2 billion folloving(a) 507b reduction in volsee of goods stored in transit areas;(b) introduction of storage penalty retes;(ol im-ease in ucrehoasing eativities; and(d) retention by BPP of a11 storage related revenues.
2/ Payable in equal instalments during 1977-80.3/ Including Rps 3,368 nillion ss.et rev alution tam payable in four equal instalments of Rps 842 million 1977-81.
Source BPP and Bank Staff
September 19F6
INDONESIA
APPRAISAL OF TANJUNC PRIOR PORT PROJECT
Actual Balance Sheet Data 1972/73 - 1975
(Rps Millions)
A c t uaMar 31 Dec 31 Dec 31 Dec 31
A s s e t 1973 1974 1974 1975
Current Assets
Cash on hand and in bank 68.9 601.3 1,946.2 2,707.4sundry debtors 1,464.9 1,372.1 2,409.7 6,004.4
Loans and advances 575.6 779.7 1,987.2 2,556.1Stores 109.7 123.8 274.0 670.0
Miscellaneous accounts - - - 743.8Total current assets 2,219.1 2,876.9 6,617.1 72,681.7
Fixed Assets
Gross fixed assets in operation 1,326.1 35,544.9 37,564.9 40,001.0Less accumulated depreciation 86.5 1,932.2 3,629.9 5 330.6Net fixed assets in operation 4129.0 33,6.5 33,935.0Works in progress 49.0 89.5 1,093.6 4708.5Total fixed assets 1,288.6 33,702.2 35,028.6 39,378.9
Loss - April-December 1973 _ 323.0 323.0
Total Assets 3,507.7 36,902.1 41,968.7 52,060.6
L i a b i I i L I e s
Current Liabilities
Salaries and wages payable _ 0.9 1.7 2.7Accrued expenses 76.3 56.2 215.1 Creditors for stores and works - - 25.0 4,847.9Other creditors 17.1 33.8 104.6 355.8Deposits and advances 475.1 316.2 1,710.6 1,737.9Government account 253.3 356.1 2,136.0 1.9Tntal c-rrent liabilities 7 4,192.9
Project pelita account _ _ 3 ,05 9Contribution for pensions - 43.4 53.3 63.0Provistion for income taxes 1,269,5 1,269,5 1,898.1 3,695.9Provision for bad debts _ _ 623.8 11.0Pension fund and compensation payments 173.9 137.6 215.0 538.5General development reserves - 756.5 1,182.1 2,961.8Social welfare reserve _ 136.8 214.2 537.7Socialu welfare reserve - 68.8 107.5 269.3
Ceneral reserve 1,237.2 275.2 429.9 1,077.1Capital asset replaceCent reserve - 33,445.8 33,046.6 32,948.9Initial capital 5.3 5.3 5.3 5.3
Total Liabilities 3,507.7 36,902.1 41,968.7 52,060.6
Ratios: Current 2.7 3.8 1.6 1.8Liquid 2.6 3.6 1.5 1.7
Source: BPP
August 1976
INDONESIA
APPRAISAL OF TANJUNG PRIOR PORT PROJECT
Estimated Balance Sheet Data 1976-1982(Rps Millions)
1976 1977 1978 1979 1980 1981 1982
ASSETS
Current Assets
Cash on hand and in bank 1,161 1,121 1,286 1,497 1,748 2,001 2,299Sundry debtors 6,500 5,600 5,200 5,300 5,400 5,500 5,600Loans and advances 2,800 2,900 3,000 3,100 3,200 3,300 3,400Stores 871 975 1,092 918 1,028 1,130 1,244Miscellaneous accounts 750 840 941 1,054 1,159 1.275 1.402
Total current assets 12,082 11,436 11,519 11,869 12,535 13,206 13,945
Fixed Assets
Gross non depreciable 25,148 25,148 25,148 25,148 25,148 25,148 25,148Gross depreciable 16,873 21,043 27,648 48,094 52,559 58,024 64,889Subtotal 42,021 46,191 52,796 73,242 77,707 83,172 90,037
Less accumulated depreciation 7,186 9,196 11,506 14,461 18,039 21,865 26,000Met fixed assets in operation 34,835 36,995 41,290 58,781 59,668 61,307 64,037Work in progress 9,407 15 114 17 842 5 100 11 150 19 000 23 550Total fixed assets 44,242 52:109 532T 6388 70,St8 80,307 17i 7
TOTAL ASSETS 56,324 63,545 70,651 75,750 83,353 93,513 101,532
LIABILITIES AND EQUITY
Current Liabilities
Salaries and wages payable 3 3 4 4 4 4 4Accrued expenses 200 208 210 216 223 234 246Creditors for store. and works 4,600 4,400 4,000 3,000 2,000 2,000 2,000Other creditors 400 500 550 575 600 625 650Deposits and advances 1,959 2,057 2,160 2,268 2,384 2,500 2,625Government account 2 2 2 2 2 2 2Total current liabilities 7,16 7,170 6,926 6,065 5,213 5,365 5,527
Long-term Debt 1,665 7,018 13,451 17,479 23,490 30,307 36,517
Unpaid Revaluation Tax 3,368 2,526 1,684 842 - - -
Unpaid Income and Other Taxes 4,044 3,033 2,022 1,011 - - -
Unpaid Contributions to National Development Pund 2,962 2,221 1,481 740 - - -
Equity AccountsGovernment eapitsl 820 3,553 5,719 9,557 13,912 16,136 17,302Revaluation keserve 32,949 32,949 32,949 32,949 32,949 32,949 32,949Surplus 3,352 5.075 6.419 7,107 7.789 8.756 9.237Total Equity 37,121 41,577 45,087 49,613 54,650 57,841 59,488
TOTAL LIABILITIES AND EQUITY 56,324 63,545 70,651 75,750 83,353 93,513 101,532
Ratios: Current 1.7 1.6 1.7 2.0 2.4 2.5 2.5Liquid 1.6 1.5 1.5 1.8 2.3 2.3 2.3Debt/Equity 4/96 14/86 23/77 26/74 30/70 34/66 38/62
Source, Bank Staff
September 1976
TABLE 17
INDONESIA
APPRAISAL OF TANJIUNG PRIOR PORT PROJECT
Estimated Cash Flow Data 1976-82(Rps Millions)
Total1976 1977 1978 1979 1980 1981 1982 1976-82 Percentage
CASH REQUIRED
A. Capital Investment Program
IBMD Project - Phase I 5,115 11,720 10,51o 2,470 - - - 29,815ADB Project 1,250 415 - - - - - 1,665Project - Phase II - - - 5,100 10,100 12,900 11,000 39,100Other and Own Account 770 420 560 415 415 415 415 3L410Total 7,135 12,555 11,070 7,985 10,515 13,315 11,415 73,990 58.5
B. Debt Service
Interest 229 502 1,018 2,003 2,826 3,527 4,326 14,431Repayments - - - 49 99 957 960 2.065Total 229 502 1,018 2,052 2,925 4,4S4 5,286 16,496 13.0
C. Changes in Working Capital (other than cash) 729 (612) 162 1,000 1,266 266 280 3,091 2.4
D. Payment of Arrears to Government
Income Tax - 1,011 1,011 1,011 1,011 - - 4,044National Development Fund Payments - 740 740 741 741 - - 2,962Revaluation (1973) Tax - 842 842 842 842 - - 3,368Total - 2,593 2,593 2,594 2,594 - - 10,374 8.2
E. Annual Payments to Government
Current Income Tax 2,845 3,134 2,444 1,250 1,241 1,757 873 13,544Current National Development Fund 1,913 2,107 1,643 841 834 1,12' 587 9.106Total 4,758 5,241 4,087 2,091 2,075 2,938 1,460 22,650 17.9
F. Total Cash Required 12,851 20,279 18,930 15,722 19,375 21,003 18,441 126,601 100.0
CASH AVAIIABLE
A. Internally Generated Cash
Net Operating Revenue (before interest) 6,352 7,266 6,349 4,732 5,583 7,431 6,268 43,981Depreciation 1,855 2,010 2,310 2,955 3,578 3,826 4,134 20,668Net Non-Operating Revenue 200 200 100 50 - - - 550Total Internally Generated Cash 8,407 9,476 8,759 7,737 9,161 11,257 10,402 65,199 51.7
B. Non-Port Projects - Not payable by BPP
Land Access, Bina Marga, Dept. Industry 270 747 156 - - - 1,173Housing Services 83 415 124 - - - 622Land Acquisition - Housing Construction 415 2,320 585 - - - - 3.320Total 415 2,673 1,747 280 - - - 5,115 4.0
C. Long-Term Loans
IBRD Project Phase I 415 4,939 6,432 1,494 - - - 13,280ADB Project 1,250 415 - - _ _ - 1,665Project Phase II - - _ 2,583 6,111 7,774 7.169
23.637
Total 1,665 5,354 6,432 4,077 6,111 7,774 7,169 38,582 30.6
D. Government Payments as Equity 817 2,737 2,157 3,839 4,354 2,225 1,168 17,297 13.7
E. Cash Available, Beginning of Year 2,707 1,160 1,121 1,286 1,497 1,748 2,001 -
F. Total Cash Available 14,011 21,400 20,216 17,219 21,123 23,004 20,740 126,193 100.0
G. Cash at End of Year 1,160 1,121 1,286 1,497 1,748 2,001 2,299 408
Source: BPP and Bank Staff
September 1976
INDONESIA
APPRAISAL OF TANJUNG PRIOK PORT PROJECT
Summary Cash Flow Data; Financial Plans 1976-79 and 1976-82(Rps Millions)
1976-79 1976-82
Capital Investments (from Cash Flow Table) 38,745 73,990Less Non Port Investments, not payable by BPP 5,115 5,115Adjusted Port Investments 33,630 100.0 68,875 100
Internally Generated Cash 34,379 65,199Less: Debt Service 3,801 16,496
Additions to Working Capital 1,279 3,091Payments of Arrears to Government 7,780 10,374Annual Payments to Government 16,177 22,650Increase in Working Cash Capital (1,210) (40g)(Reduction)
Total Deductions 27,827 52,203
Internal Cash-Available for Port Investments 6,552 19.5 12,996 18.9
Loans 17,528 52.1 38,582 56.0
Government Equity Contributions 9,550 28.4 17,297 25.1
33,630 100.0 68,875 100.0
Source: Bank Staff
September 1976
oo.
ORGANIZATION CHARTDIRECTORATE GENERAL OF SEA COMMUNICATIONS
Director GeneralAdml. Haryono Nimpuno
I nspectorates f Secretariat GeneralBrig. Gen. Hunholtz- Planning- Organization and Method
- Personnel- Finance- Material- Legal and International
DI RECTORATES
Shipping Marine Navigation Aids Coast Guard Research and Training e
Traffic Safety Capt. V. Arun Kol I Supardi Development J.H. Warula
L Sapta Adli M. WNibono Mr. J Rustand, - Maritime Academies
- Upgrading
-Examining Board
Security Ports and Dredging ShipyardsKol Jakarso Ir Boediardio Ir. Chatab Nuzwari
1 2 3 4 5 6 7 8 9
Maritime Districts- Ports- Navigational Aids
Finance- Health
World Bank-9677
INDCONSIA
APPRAISAL OF TAbNlUG PR1DE PORT PROJECT
Port Administration Organization Chart and Department Manpo-er
PORT ADMtlISTRATION
labor Pool Planning andOperation Projects unit-
Unit Usaha T| (Operating Company) 1/0 Sertia |_
Special ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~Sertra
| Security Unit FfAi:ni eSgPublic ea thPrira Relations] cetre
/I7 1 t /8145 /540/ 145 17457 ITraffic Division Services Division Technical Divicion Financial Division Dredging Division Pilotage Division
Sections Sections Sections Sections Sections Sectione
Cargos Statistics land & Leases Electricity Civil Engineering Financial Administration Operations Administration(Commercial) _ _
Shipping Statistice Floating Equipment Budgetting Maintenance PilotsWater Supply
Labour Affairs Mechanical and Accountancy Fleet CrewsQuays, Transit Sheds Ele-trical Engineeringend Warehouses Telecom unications
Headquarters
Equipment (Commercial)
Towing and Barges
1/ largely uses consultant services
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