This document discusses developing multimodal transport in the North Java Corridor. It identifies the main economic centers and activities in the corridor and notes the need for infrastructure to meet the needs of these economic activities. It then discusses the current transport context and ideal modes for different cargo types. Key obstacles to efficient freight transport by road, rail, sea and lack of intermodal connectivity are identified. The document recommends targeting specific commodities for shifting to rail and sea transport. It outlines the right infrastructure, policies and reforms needed over the short, medium and long term to improve multimodal transport in the corridor.

1. Development of Multimodal Transport in
North Java Corridor
Scoping Study

2. 2
Study focus
Development Theme
Driver for national industry and
services provision
Economic centres
Jakarta
Bandung
Semarang
Yogyakarta
Surabaya
Main economic activity
Food and beverage
Textile
Transportation Equipment
Shipping
ICT
Defence Equipment
Greater Jakarta Area
“to ensure that the infrastructure, services and facilities that are
provided in the Corridor meet the needs of the users of the
transport system, and especially the needs of main economic
activities of the corridor as identified in the MP3EI”

3. 3
Study context
National Logistics System
Multimodal Transport StrategyNRMP NPMP
Road system plans

4. 4
Mode choice in principle
Distance
Flow concentration
Cargo value
Cargo perishability/fragility
Cargo density
Road Rail Sea
Low
Low
High
High
Low
High
High
Low
Low
High

5. 5
Domestic container movements by sea (Java)

6. 6
Geographical Pattern of Intra-Java Freight Flows
0 1000 2000 3000 4000
Banten
DIY
DKI
Jawa Barat
Jawa Tengah
Jawa Timur
Destination
Milliontonnes
Origin
Banten DIY DKI Jawa Barat Jawa Tengah Jawa Timur

7. 7
Fertiliser,600,000
Silica, 7,874
Iron Ore, 180000
Petroleum,496,000
Cement, 450,000
Container, 400,810
Parcel (multiproduct),
110,854
Antaboga
(multiproduct),
243,000
Other multiproduct,
130,792 Steel,25,731
Existing rail freight task (Java) – excl coal.
Source: KTPA, 2012

8. 8
Key Obstacles to Efficient Multimodal Freight
Transport in the Java Corridor
GROUP KEY ISSUES
ROAD ISSUES Slow delivery of expressway system
Overloading
Congestion
Suboptimal road investment prioritisation
Distortion due to fuel subsidies
RAIL ISSUES Lack of network capacity
Limitations on train weights and dimensions
Lack of competition
MARITIME ISSUES Limited port capacity
High port access costs
Unreliable port performance
High cost and unreliability of domestic shipping services
MODAL
INTERCONNECTIVIT
Y ISSUES
Poor rail access to port terminals
Scarcity and poor performance of intermodal terminals
Lack of intermodal focus in planning and system management

9. 9
Some surprises
• Truck costs are not as high as expected relative to other
modes. This reflects fuel subsidy, lack of RUC and probably
high level of overloading
• Truck travel times are not as low relative to other modes as in
other places. This appears to reflect traffic congestion and
restrictions on truck operation in cities.
• Some high value goods which we would normally expect to
travel by truck are shipped using sea mode (for security
reason), i. e.: electronics and car
• Some low value goods that seem natural targets for rail travel
by road: for example, around 300 trucks each carry 30 tons of
coal daily from Cirebon to Bandung for textile factories around
Bandung.

10. 10
Targeting the right cargoes
Commodity Comments
Existing bulk traffics Need to avoid complacency
Steel Krakatau steel already sends cargo by both rail and sea, and is
interested in increasing non-road share. Also significant growth
with the Posco Krakatau steel development.
Port-related
containers
Pressure on landside access to ports will make increased use of rail
imperative. Also port-related movement tend to be better suited
to rail because there is not – or need not be – a truck distribution
leg at the port end.
Niche bulks Rail already has a position in many bulks, but some customers –
e.g. cement – have an interest in increasing their use of rail
Java-Sumatra
freight
The need to make the Straits crossing, congestion at the ferry and
relatively long distances make this trade a priority target for ro-ro
shipping services
Automotive A more difficult target for rail, but at least one major manufacturer
is interested in considering and rail is quite widely used in other
countries.
Jakarta-Surabaya
general cargo
It will be difficult for rail or sea to be sustainably profitable in these
cargoes, but both rail and sea currently play a minor role in the
carriage of these cargoes. Double-tracking should improve
competitive position of rail.
Low
hanging
fruit
More
difficult

11. 11
RIGHT infrastructure and services
Immediate
(before
2014)
Complete Jakarta-Surabaya double-tracking
Improve access links to major ports
Improve facilities for handling motor vehicles at T Priok
Promote use of full potential of existing intermodal terminals
Develop common user terminal at Cilegon
Develop Cikarang-Surabaya rail services
Medium
term
(2015-2019)
Provide additional container capacity at T Priok and T Perak
Ensure all new terminal developments have high quality road
and rail access
Create network of intermodal terminals/dry ports
Expand ro-ro services between Sumatra and Java
Develop specialist rail services for automotive industry
Longer term
(2020 and
beyond)
Create freight only rail links in congested section of the
network
Increase structural strength of key rail freight links

12. 12
The RIGHT supporting policies
Immediate
(before
2014)
Set and monitor KPIs for cargo handling performance at key ports
Adopt new road design standards for all of strategic freight network
Formally establish peak logistics industry consultative body
Remove fuel subsidy for heavy diesel fuels
Define and implement rail track access charge
Foster competition in container terminal services
Modernise PTKAI rolling stock (commence)
Adopt point-of-origin approach to enforcement of vehicle limits
Further streamline customs clearance procedures
Intensify congestion management efforts in major cities
Include multi-modal transport priority actions in Renstra
Medium
term
(2015-2019)
Restructure government institutions to better support multimodal transport
Develop national road freight strategy
Progressively introduce road pricing scheme
Trial new approaches to expressway delivery
Revise procedures for prioritising road capacity improvements
Restructure PKAI on business lines
Provide customs clearance at all dry ports
Integrate transport considerations into industrial estate planning
Longer term Introduce vehicle booking systems at T Priok and T Perak

13. 13
Reform Themes and Supporting Actions
THEME ACTION ITEM
Improving land transport
access to ports
1: Construct Tanjung Priok rail link
2: Complete Tanjung Priok access road
3: Activate Tanjung Perak rail connection
4: Accelerate proposed expressway links to Tanjung Perak
5: Ensure high quality access road to Kalibaru
6: Incorporate planning for rail links in new terminal developments
Delivering increased port
capacity
7: Set and monitor Key Performance Indicators (KPIs) for cargo handling performance at key ports
8: Promptly deliver increased container port capacity
9: Improve facilities for handling motor vehicles at Tanjung Priok
10: Introduce a vehicle booking system at the main container terminals
Developing freight rail
infrastructure and terminals
11: Complete double tracking Jakarta–Surabaya
12: Develop selected freight only rail links
13: Selectively improve rail track strength
14: Promote use of the full potential of existing intermodal terminals
15: Construct a common user rail terminal at Cilegon
16: Develop a network of new intermodal terminals
Strengthening the freight
capability of road network
17: Develop a national road freight strategy
18: Adopt new road design standards for all roads in strategic freight network
19: Trial new approaches to expressway delivery
20: Change the way in which road capacity projects are prioritised
Fostering a more
competitive environment
21: Remove fuel subsidy on diesel fuel
22: Progressively introduce a road pricing regime
23: Define and implement track access charges
24: Adopt point-of-origin approach to enforcement of weight limits
25: Foster competition in the provision of container terminal services
26: Modernise PT Kereta Api Indonesia (PTKAI) freight operations
Introducing new service
models
27: Promote Cikarang–Surabaya rail services
28: Expand Ro-Ro shipping services between Java and Sumatera
29: Develop specialised rail services for automobiles
Improving planning and
trade facilitation
30: Formally establish peak logistics industry consultative body
31: Restructure government institutions to support multimodal approach
32: Integrate transport considerations into planning of industrial estates
33: Intensify congestion reduction efforts in major urban centres
34: Further streamline cargo clearance procedures
35: Provide customs clearance at inland terminals

14. 14
Indicative Timing for Recommended Actions..1/2
Short Term
(before
2014)
Medium
Term (2015–
2019)
Long Term
(2020 and
beyond)
In Progress
Action 2: Complete Tanjung Priok access road
Action 4: Accelerate proposed expressway links to Tanjung Perak
Action 9: Improve facilities for handling motor vehicles at Tanjung Priok
Action 11: Complete double tracking Jakarta–Surabaya
Committed
Action 1: Construct Tanjung Priok rail link
Action 5: Ensure high quality access road to Kalibaru
Action 8: Promptly deliver increased container port capacity
Action 18: Adopt new road design standards for all roads in strategic freight
network
Action 23: Define and implement track access charges
Action 25: Foster competition in the provision of container terminal services
Action 33: Intensify congestion reduction efforts in major urban centres
Planned
Action 3: Activate Tanjung Perak rail connection
Action 6: Incorporate planning for rail links in new terminal developments
Action 34: Further streamline cargo clearance procedures
Previously recommended
Action 26: Modernise PT KAI freight operations
Action 13: Selectively improve rail track strength
Action 14: Promote use of the full potential of existing intermodal terminals
Action 15: Construct a common user rail terminal at Cilegon
Investigation and preparation
Implementation

15. 15
Indicative Timing for Recommended Actions..2/2
Short Term
(before
2014)
Medium
Term (2015–
2019)
Long Term
(2020 and
beyond)
Action 16: Develop a network of new intermodal terminals
Action 17: Develop a national road freight strategy
Action 19: Trial new approaches to expressway delivery
Action 20: Change the way in which road capacity projects are prioritised
Action 21: Remove fuel subsidy on diesel fuel
Action 22: Progressively introduce a road pricing regime
Action 28: Expand Ro-Ro shipping services between Java and Sumatera
Action 31: Restructure government institutions to support multimodal
approach
Action 32: Integrate transport considerations into planning of industrial estates
Action 35: Provide customs clearance at inland terminals
New initiatives
Action 7: Set and monitor KPIs for cargo handling performance at key ports
Action 10: Introduce a vehicle booking system at the main container terminals
Action 12: Develop selected freight only rail links
Action 24: Adopt point-of-origin approach to enforcement of weight limits
Action 27: Promote Cikarang–Surabaya rail services
Action 29: Develop specialised rail services for automobiles
Action 30: Formally establish peak logistics industry consultative body
Investigation and preparation
Implementation

16. 16
Options for Next Step
No Initiative Justification Activity Outputs
1. Detailedanalysisof
specific commodity
supply chains
(automotive, steel
andcement)
Tounderstand what needs to
bedone for potential
commodity to divertto rail,
andto provide a basis for
estimating thepotential sizeof
modechange
Detailedsurveyon the movement of
rawmaterial to final product
deliveryofspecific to improvethe
understanding on existing
commodity movement and its
transportsystem
• Tradeandsupply chainpattern
analysisfor eachcommodity
• Costand tariff structures
• Understanding of barrierstomodal
shiftin eachchain
• Estimatesofmodal shareexisting and
future
2. Diagnosticauditof
dryport performance
Touse the experienceof
Gedebageand Cikarang Dry
Portsto understand what
needs to be done to support
development of successful dry
ports inIndonesia
Diagnostic auditof factorsthat
currentlyinhibituse of the
Gedebageand Cikarang dryports
andanalysisof what canbe done to
removeobstaclesto improved
performanceofthese ports and
identifylessons learnedfor future
dryport development
• Factfinding problems and constraintin
Gedebageand Cikarang
• Detailedrecommendationsfor what
canbedone to improvesituation at
these facilities
• Criteria for theselectionand
development of future dryports.
3. Assessment of
potential intermodal
terminal markets
(IMT)andlocations
Support planning to develop
container yardconnected to
railwaytoincreasethe
flexibilityof freightrail
Asses both demand and supply
conditions at previously identified
potential IMT locations, including
working with PTKAI on potential for
development inseveral stations.
Identifythe possibility of further
development of those container yard
• Potential location
• Potential market
• Potential development as
“consolidation freightcentre”
• Operational andbusiness scheme
4. Explorationof
potential for Java-
Sumatra ro-ro
services
Needto develop alternativesin
Java-Sumatera corridor to
decreaseroad trafficload
Detailedsurveyon ro-roJakarta–
Belawan.Inititalizing assesmentto
potential demand from Central/East
Java –Sumatera corridor
• Potential demand/commoodity
(Semarang/Surabaya –Sumatera)
• Lesson learnedto Jakarta-Belawan
5. Developmentof
Cikarang-Tanjung
Perakserviceoptions
Morepromising (double trackvs
Pasoso). Support to
development freightrail inJava
North Corridor
Assess size of potential market and
key determinantsof mode choice for
thismovement. Theanalysis could
alsoincorporatean assessment of
thefeasibilityof higher priorityfor
freighttrainsonthe double tracked
section of the northern route.
• Potential market Cikarang toEast
Indonesia
• Problemsand constraint to
development (includeaccessibility to
Tjg.PerakPort)
• Modal shareexisting and future

17. 17
Terima Kasih