ENHANCES SAFETY NAVIGATION THROUGH THE IMPLEMENTATION OF THE VOLUNTARY PILOTAGES SERVICES IN THE STRAITS OF MALACCA AND SINGAPORE

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CF 10/5/1/2 REPUBLIC OF INDONESIA MINISTRY OF TRANSPORTATION DIRECTORAT GENERAL OF SEA TRANSPORTAION ENHANCES SAFETY NAVIGATION THROUGH THE IMPLEMENTATION OF THE VOLUNTARY PILOTAGES SERVICES IN THE STRAITS OF MALACCA AND SINGAPORE

OUTLINE I. Background: a. Profile of The Straits of Malacca and Singapore (SOMS) b. Legal Aspect II. Traffic in The SOMS III. Why Need Pilotages in The SOMS IV. The Routeing of Implementastion of The Voluntary Pilotages Services in The SOMS V. Resources of Pelindo 1 VI. Competitive Advantages of Pelindo 1 VII. Strategic Plan to Implement The VPS in SOMS VIII. Video History of The Pilotages in The SOMS 2

I. BACKGORUND 1.a. Profile of The Pilotages in The Straits of Malacca and Singapore (SOMS) 1. As an Exclusive Economic Zone of the three Litoral states, high economic activities with more 300 Ports of : cargo, passanger, commercial, non commercial, fishing, government, military Naval base, traditional and private port. 2. A long channel of the straits ( 600 NM), with some narrow and shallow water, as an hazardous area danger for safety of navigation. 3. Connecting Indian ocean to South China sea, suddenly haze even fog appear frequently, danger to navigation. 4. Traffic separated scheme (TSS) yet not use effectively, due to too many fishing boat and traditional boat using the same channel. 5. As a transit passage with some piracy accidents were happened. 6. Is the 3rd busiest straits in the world; passing one-third world trade, the main line for the China, Japan, Korea and some American's Oil and Gas needs. 3

I. BACKGORUND 1.b. Legal Aspect of The Pilotages in The Straits of Malacca and Singapore (SOMS) - International Law 1. IMO Resolution No. A. 375(X), 1977 about Traffic Separation Scheme (TSS) at Straits of Malacca and Singapore (SOMS) - Establishing the Traffic Separation Scheme (TSS) of Malacca and Singapore Straits. - DDV & VLCC using TSS is recommended to use a Pilot from the respective countries when they become available. 2. IMO Resolution No. A. 476(XII), 1981 Implemented the Traffic Separation Scheme Bank up to Horsburgh. (TSS) start from One fathom 3. Congress IMO-MSC 69 th Session, 1998, Annex VII Stated DDV & VLCC navigate on TSS is recommended to use pilot services from the respecting countries, when they become available. 4. Result of TTEG 41 st : Guidelines to Implemented the Voluntary Pilotage Services in the Straits of Malacca and Singapore (Guidelines to Implemented the VPS in SOMS). 4

I. BACKGORUND 1.b. Legal Aspect of The Pilotages in The Straits of Malacca and Singapore (SOMS) - Indonesia Law 1. Constitution No. 17, 2008 concerning of Shipping, 2. Goverment Regulation No. 5, 2010 concerning of Navigation, 3. Goverment Regulation No. 21, 2010 concerning of Maritime Environtment Protection, 4. Ministry of Transportation Regulation No. 57, 2015 concerning of Pilotage 5. Decree of Director General of Sea Transportation No. BX-428/PP-304 on Nopember 25, 2016 concerning of Granting Permission To PT Pelabuhan Indonesia I (Persero) To Implement The Voluntary Pilotage Services in the Straits of Malacca and Singapore. 5

II. Traffic In The SOMS Traffic 2009 - Nopember 2016 Sources : (Marine Department Malaysia) Others : small tanker vessel (non-deep draft vessel), cargo vessel, container vessel, ro-ro, passenger vessel, livestock carrier, tug/tow, government vessel, fishing vessel, dan lainnya. Projection of CAGR Assumtion per year is : 2,13%, which is : -VLCC/ULCC (deep draft); 3,95% per year. -LNG carrier; 2,83% per year. -Bulk carrier; 5,21% per year. -Others; 0,63% per year. 6

II. Traffic In The SOMS PROJECTION 2017-2036 CAGR 2,13% 7

Ships That More in Need The Pilotages in The SOMS VLCC/UL CC (DDV) 5.534 VLCC-ULCC LNG Carrier (10%) 405 Bulk Carrier (DDV) (0%) 5.534 1.596 Bulk Carrier 15.958 Traffic in The SOMS in 2016 (82.846) LNG Carrier 4.047 Ships Need Pilotages in 2016 (7.535) Other Ship 57.307 Others : small tanker vessel (non Deep Draft Vessel - non DDV), cargo vessel, container vessel, ro-ro, passenger vessel, livestock carrier, tug/tow, government vessel, fishing vessel, dan lainnya. 8

III. Why Need The Voluntary Pilotage Services in Straits of Malacca and Singapore 1. What is the impact if the Straits of Malacca and Singapore is blocked due to shipwreck in the narrowest location? 2. Who will lose if the Straits of Malacca and Singapore can not be passed by ship? 3. How much loss to bear if the Straits of Malacca and Singapore can not be passed by ship? 9

YEAR PIRACY/ROBBERY ACCIDENTS 2010 27 74 2011 16 88 2012 16 60 2013 23 45 2014 23 35 2015 20 29 Sources: IMB, MSC, Indonesian Navy and Others III. ACCIDENTS AND PIRACY IN THE SOMS (2010-2015) every week 10

III. Why Need The Voluntary Pilotage Services in Straits of Malacca and Singapore 1. More safety, secure and comfort for the ship owners and the masters, also any parties engaged, whenever their vessels passing by the straits. Pilotage will be operate by expert Pilots who have the experience, skill and knowledge about the straits of Malacca and Singapore with well. 2. Will be supervises by 3 Littoral State Authority, by the close and direct communication between pilot in duty with an Officer in charge. 3. According IMO Recommendation for using Pilot, as a legacy matter to claim the insurance, whenever a ship sail the straits with Pilot onboard. 11

IV. The VPS in SOMS Routeing Pelindo 1 Provides 2 (two) route for The Voluntary Pilotages Services in the SOMS, such as: 1.Transit Passage are the ships passing thru the straits of malacca and singapore with out visit any port around it, voyage with east bound passage or west bound passage, between Berhala Island with Pilot Boarding Ground (PBG) at coordinate 03 0 55.100'N/099 0 39.000'E to Horsburgh with Pilot Boarding Ground (PBG) at coordinate 01 0 17.428'N/ 104 0 14.389'E; and other wise. 2.Port Destination/Port Origin are the ships go to or originate from any port around at straits of malacca and singapore, with P i l o t B o a r d i n g Ground at west side at coordinate 03 0 55.100'N/099 0 39.000'E and Pilot Boarding Ground at east side at coordinate 01 0 17.428'N/104 0 14.389'E. 12

IV.a. Route of Transit Passage Pulau Sabang Belawan Pulau Berhala One Fathom Bank Horsburgh 13

IV.b. Route of Port Destination/Origin 14

IV.a. Pilot Boarding Ground at West Side (Pulau Berhala) 15

IV.b. Pilot Boarding Ground at East Side (Horsburgh) 16

V. PELINDO 1 RESOURCES 1. Human Resources (The Pilots), owned by Pelindo 1: a. Deep Sea Pilot Sertificate: 15 peoples b. First Class Pilot: 35 peoples c. Second Class Pilot : 60 peoples d. In 2017, Pelindo 1 will recruit 2 (two) Pilots who have experience in deep sea pilot services in other area (Europe or Australia). 2. 8 units Pilot Boat, placed at: a. 2 Units at Belawan Port b. 1 Unit at Kuala Tanjung Port c. 2 Units at Dumai Port d. 1 Unit at Sei Kolak Kijang Port e. 1 Unit at Tanjung Balai Karimun Port f. 1 Unit at Batam Port. 17

V. PELINDO 1 Resources 3. Pilot Station and other equipments and tools: a. Lhokseumawe Pilot Station b. Belawan Pilot Station c. Kuala Tanjung Pilot Station d. Dumai Pilot Station e. Tanjung Balai Karimun Pilot Station f. Batam Pilot Station g. Tanjung Uban Pilot Station h. 2 Units Satelite Cellphone i. 3 Units Pilot Portable Unit (PPU) 4. Pelindo has fully complied with all the requirements of the Guidelines to Implemented the Voluntary Pilotage Services in the Straits of Malacca and Singapore. 5. 3 Vessel Traffic System (VTS) Station, located at: Belawan, Batam and Dumai. 18

VI. Competitive Advantages of Pelindo 1 1. Knowledge of the Pilots are more familiar to Straits of Malacca-Singapore (local expert advantages), Pelindo 1 have 17 Ports facing to (located at) the Straits of Malacca and Singapore. 2. Pelindo 1 is the one and only company (owned by the Indonesia government/state Own Enterprise) designated by the Government of Indonesia to provide the VPS in SOMS. 3. In Pelindo 1 area, especially those directly to the SOMS, There are 35 Indonesia National Security Facility, They are 21 Indonesian Navy Station, 7 Indonesian Marine Police Station and 7 Indonesian Coast Guard Station, which will be ready to provide special assistance (or special emergency quick response) for the ships which got the pilotage services in the SOMS. 4. With Pilotages's distances farther from TSS, Pelindo 1 offers a more efficient and flexible tariff. 5. Pelindo has been serving VPS since May 2015 until now, with one of the largest oil companies in Indonesia (PT British Petroleum Berau). 19

VII. Strategic Plan to Implement The VPS in SOMS RENCANA KERJA STRATEGIS JASA PEMANDUAN SELAT MALAKA - SELAT SINGAPURA NO URAIAN 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 Increase of Customers (Company) 2 2 2 3 3 2 2 2 2 1 2 Pilots Needs (Person) 9 16 24 41 60 81 103 127 152 180 3 Recruitment of Expatriat Pilots 1 2 2 2 2 1 4 Pilot Boat and Other Equipment a. Pilot Boat - Accumulation (Unit) 2 2 3 3 3 3 3 3 4 4 b. Helicopter - Accumulation (Unit) - - 1 1 1 2 2 2 2 2 Build and Improve an Operational System 5 Based on IT Standardization of Occupational Health and 7 Safety System (SMK3) OHSAS 18001 and ISO 45001: 2016 8 Cooperation with Oil Producing Company 2 2 1 1 1 Cooperation and joint marketing with 9 International Marketing Agent 10 Cooperation with Maritime Association INSA 11 Cooperation with Indonesian National Security 12 Have Representative Marketing Seeking the formation of Joint Pilotage IMPA & INTERTA NK0 P&I Club ICS IMO & IPTA Singapu ra Dubai 20

VII. Strategic Plan to Implement The VPS in SOMS RENCANA KERJA STRATEGIS JASA PEMANDUAN SELAT MALAKA - SELAT SINGAPURA NO URAIAN 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 1 Increase of Customers (Company) 2 2 2 3 3 2 2 2 2 1 2 Pilots Needs (Person) 209 241 275 293 313 333 355 378 402 428 3 Recruitment of Expatriat Pilots 2 2 4 Pilot Boat and Other Equipment a. Pilot Boat - Accumulation (Unit) 5 5 6 6 7 7 8 8 9 9 b. Helicopter - Accumulation (Unit) 2 2 2 2 2 2 2 2 2 2 5 Build Operational System Based on IT 7 Standardization of Occupational Health and Safety System (SMK3) OHSAS 18001 and ISO 45001: 2016 8 Cooperation with Oil Producing Company 1 1 9 Cooperation and joint marketing with International Marketing Agent 10 Cooperation with Maritime Association 11 Cooperation with Indonesian National Security 12 Have Representative Marketing Singapura Dubai 13 Seeking the formation of Joint Pilotage Board and Operation with Malaysia and Singapore 14 Seeking the Guidance VPS in SOMS Approved IMO 15 Following international maritime activities 21

REPUBLIC OF INDONESIA MINISTRY OF TRANSPORTATION DIRECTORAT GENERAL OF SEA TRANSPORTAION Thank You for Your Kind Attention