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Govt opens private parties to operate freight liners


Photo by Ministry of Transportation

JAKARTA (TheInsiderStories) – The Indonesian government has opened an opportunity for private parties to operate freight liners under its Sea Toll Road program. Government has assigned the state-owned shipping company, PT Pelni to operate the sea toll road but bidding would also be held for private parties.

The secretary general of the Ministry of Transportation, Sugihardjo, said his office is now studying the scheme for involving private parties in the operation of nine sea toll roads to be opened in 2017. With this scheme, it is hoped that private parties would be interested in investing.

He added, the subsidy for the state-owned company is given through a Public Service Obligation scheme while for private parties, it would be through a long-term contract. Regarding tariffs, he made it clear that these would be combined so that the tariffs imposed by the Port Management Unit (UP), PT Pelindo (state-owned port operating company) and commercial tariffs are equalized.

On a separate occasion, the deputy general chairman for transportation of the Indonesian Chamber of Commerce and Industry, Carmelita Hartoto, hailed the governments plan but hoped the government would also consider consolidating cargo for the sea toll road which generally consists of nine-food staples.

She pointed out that the government must also actively push for industrial development outside Java so that industries can grow there.

“The government must think of infrastructure development and transportation facilities that are connected to regions,” she concluded.


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Source: The Insiderstories
Govt opens private parties to operate freight liners

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