The operation of the former JICT 2 Terminal in the Tanjung Priok Port area is not simply a matter of utilizing existing port assets. Furthermore, the terminal's operation must be examined from the perspective of economics, logistics efficiency, asset productivity, and its benefits to the business community and the national economy.
Port terminals are essentially strategic infrastructure. Every meter of land, wharf, stacking yard, loading and unloading equipment, and vehicle access must generate optimal economic value. Therefore, when a terminal is re-operated or given a new function, the most fundamental question is: does its operation truly provide greater economic benefits than the costs?
Not Just Operating
There is a tendency to measure the success of a terminal from only one indicator: the terminal is operational.
However, from a business and economic perspective, these indicators are not sufficient.
A terminal can be said to be economically healthy if there is a balance between revenue, costs, asset utilization, productivity, and the economic benefits generated.
Therefore, the public and stakeholders have the right to know a number of important indicators, including:
- how much investment is needed to re-operate the terminal;
- how much are the annual operating costs;
- what is the terminal capacity and what is its utilization rate;
- what are the targets and realization of loading and unloading;
- how much does it cost per TEU or per ton of goods served;
- how much income is generated;
- how much contribution to state revenue or business entity income;
- and how much terminal operations are able to reduce logistics costs.
Transparency regarding these figures is important so that decisions about terminal operations are not based solely on administrative considerations, but are truly based on measurable economic and business feasibility studies.
Economic Potential
If managed with the right business model, the former JICT 2 Terminal has the potential to become an important part of the Tanjung Priok logistics ecosystem.
Terminal activities can create a chain effect on trucking companies, container depots, warehousing, forwarding, shipping companies, stevedoring workers, and small and medium-sized businesses in the supply chain.
This means that the economic viability of a terminal isn't solely measured by terminal service revenue. There's a multiplier effect that must be taken into account.
However, this multiplier effect will only emerge if the terminal truly has an adequate utilization rate. Terminals with many idle terminals still require maintenance and operational costs, while the economic benefits are not maximized.
Opinion By: Saiful Anam, Editor-in-Chief of ISL News
