IPC Terminal Peti Kemas (IPC TPK) enjoyed yearly growth in throughput, revenue, and net profit last year (2022), exceeding its annual target. Thanks to some value-creation initiatives and cost-efficiency steps it has taken during the year.
In its annual report released in a recent media gathering (January 24, 2023), IPC TPK reported that its throughput grew 6% yearly, to 2,879,118 TEUs, from 2,720,810 TEUs handled in 2021. It also exceeded the target (RKAP) by 3%, from 2,802,441 TEUs set up in an early year.
This is the total of all its terminals, including Priok TP2 (1.282 million TEUs), Priok TP2 (975 thousand TEUs), Teluk Bayur (93 thousand TEUs), Pontianak (263 thousand TEUs), Palembang (110 thousand TEUs), Panjang (116 thousand TEUs), and Jambi (40 thousand TEUs).
This volume grew higher than its parent company PT Pelindo Terminal Petikemas Subholding (SPTP). Reported that SPTP total throughput in 2022 was 11.16 million TEUs, increasing 1.08% y-o-y, from
11.04 million TEUs in 2021.
In line with those positive operational performances, IPC TPK enjoyed satisfying financial growth during the year. It booked revenue of Rp 2.85 trillion, a 14% increase y-o-y, from Rp 2.51 trillion in 2021. This revenue also exceeded the target by 10%, in which the target was contracted to 2.60 trillion. (see the table)
Among its terminals, Tanjung Priok TP2 contributed the highest to total IPC TPK revenue, reaching Rp 1.296 trillion. Then subsequently followed by Priok TP1 (Rp 818 billion), Pontianak (193 billion), Panjang (139 billion), Palembang (123 billion), ATS (97 billion), Teluk Bayur (76 billion), and Jambi (51 billion).
The net profit, meanwhile, reached Rp 292.8 billion, increasing 17% YoY from Rp 250 billion in 2021. The profit was also higher than the target, by 34%, from Rp 219 billion set up in an early year.
Operation and Cost Efficiency
Commending this positive performance, IPC TPK President Director David P. Sirait explained two key factors. First is cost efficiency, and second is value creation.
“These two aspects have helped the company with such positive performance. We have taken some value creation jobs and strategies both in operation and marketing while at the same time, we have done cost
efficiency in any aspect and terminals we operate,” David said.
David named efficiency in fuel consumption as an example. In 2022, it successfully cut fuel consumption by 2%, from 3.97 liter/TEU in 2021 to 3.90 liter/TEU in 2022. The fuel efficiency, he said, took place at all its
terminals.
Echoing this, Medi Utama, IPC TPK Operational Senior Manager, explained that after some doing some steps for efficiency, fuel ratio to throughput per area in 2022 are as follows: TP1 (4.59 liter/TEU), ATS (1.4
litre/TEU), Teluk Bayur (4.15 litre/TEU), Pontianak (5.03 litre/TEU), Palembang (1.31 litre/TEU), Panjang (3.06 litre/TEU), and Jambi (4.66 litre/TEU).
In addition to cost cuts, operation efficiency was increased by increasing productivity. In November, for example, IPC TPK created a record in stevedoring activity. The record was achieved while serving the MV MSC Regina call at Terminal 3 Tanjung Priok. By deploying 7 Units of Quay Container Crane, its BSH (boxes/ship/hour) reached 95.72 movements, much higher than the target set up by the Ministry of Transportation, which is contracted to 55 movements.
At the beginning of the year, IPC TPK served the MV MSC Tianshan for the first time, the largest ship with a length (LOA) of 334 meters carrying around 2,000 empty 40-foot containers to help overcome the
scarcity of containers in supporting the export of Indonesian products abroad.
As an effort to digitize services, IPC TPK is a pioneer in implementing TOS Nusantara and Single Billing so that all operational service activities can be recorded and monitored through an integrated system with low implementation costs.
Value Creation Generating New Income Sources
In addition to creating efficiency through the activities mentioned above, IPC TPK also has some activities for value creation that support revenue enhancement. Yandri Trisaputro, IPC TPK Commercial Senior Manager, named some activities and new services according to the areas.
First, in Tanjung Priok Area 2, IPC TPK handled as many as 7 New Direct Services & Transhipment during the year. These services have generated revenue of up to Rp 140 billion;
Second, extended yard utilization to support the high volume of container stacking in Tanjung Priok Area 1, generating revenue up to Rp 1 billion;
Third, initiated a key strategic partnership with TOYOTA to handle cargo management (terminal support), generating revenue up to Rp 372 billion;
Fourth, revenue creativity through Pelindo Group’s synergy & collaboration with PTP Multipurpose (Teluk Bayur), generating new income sources up to Rp 1.5 billion;
Fifth, new direct services from Pontianak to Singapore and revenue creativity with PTP Multipurpose (Pontianak). Both activities have generated revenue of Rp 12.4 billion and Rp 1.7 billion, respectively;
Sixth, partnership with MTI, MKJ, & SSL to support cargo handling of APP Group (Palembang), generating revenue up to Rp 1.2 billion;
Seventh, expanded service for quarantine inspection inside the terminal and new container depot, which integrated with terminal (Panjang); initiated strategic partnership with BMS & BMA to support handling of project cargo (Jambi).
CSR and Reward of Achievement
In addition to improving and increasing operational and marketing productivity and triggering the high growth financial statement, IPC TPK also continues its commitment to community and environment development, proved by its massive activities of CSR (corporate social responsibilities) programs.
As a subsidiary of Pelindo Container Terminal Subholding, IPC TPK runs an Environmental Social Responsibility program based on Sustainable Development Goals (SDGs) and ISO 26000.
For environment development, IPC TPK, for example, planted as many as 6,225 mangrove seedlings in South Sumatra and Bali regions and more than 1,500 trees in the terminal container area and conservation of 240 coral reef seedlings in Lampung.
For community development, IPC TPK helped over 500 orphans and poor people through free circumcisions and distributed nearly 700 free glasses to teachers and school students in all work areas. For economic development, IPC TPK provided entrepreneurship training to 40 residents of Tanjung Priok as an effort to give birth to MSMEs in the port area.
In addition, IPC TPK also supports law enforcement by hosting a ‘Talk Show on Understanding Corruption and Gratification,’ attended by hundreds of operational workers in all work areas to prevent corruption, especially on the operational side.
For the innovations and breakthrough initiatives that have been intensively carried out throughout 2022, IPC TPK was awarded 21 awards from domestic and international awards events. Achievements were made in operations, commercial, technology, and corporate governance. Such as the Port Operator of the Year 2022 award from the Bisnis Indonesia Logistics Awards 2022 event and the Customer Value Creator/Terminal of The Year award at the Global Port Forum Award event held in Dubai last September.
Key Step 2023
David confirmed IPC TPK’s commitment to continue innovating and initiating new breakthroughs to support corporate performance improvement and service optimization.
“We have provided extra services to service users starting from berthing on arrival, services based on planning and control, optimizing and digitizing container loading and unloading equipment, up to when the ship leaves the dock. And we commit to improving these services,” he said.
According to the IPC TPK plan, this year (2023), the terminal would continue to execute the programs of standardization of operational scheme based on P&C at the domestic container terminal; do intensification of marketing program to the shipping line and cargo owner, including transshipment service; build integrated planning and control both for shipping line with terminal and terminal with the terminal; conduct business development studies of new business, new market, and new area; and implementation of single terminal operating system (single TOS).
“Increasing terminal productivity through digitization and operating systemization as well as asset optimization and value creation will still be the company’s main program in 2023 so that targets set by shareholders can be achieved and support the holding’s efforts to cut national logistics costs and ship layover time at ports,” David said.
This article was published in ISG Print Magazine February 2023 Edition.