ECONOMIC REVIEW

INCREASING SIZE OF CONTAINER SHIPS

The increase in the size of container ships also continues to occur from year to year, so adaptation to port infrastructure is needed. Average ship sizes have increased by ~130% globally from 2000 to 2015 and are expected to continue to grow to take advantage of economies of scale. This will encourage the development of an infrastructure around the ports to allow them to become an international maritime hub. The implications of this trend for the port business are the need for port infrastructure development around wholesale trade, the possibility of developing international and domestic maritime hubs & spokes, increasingly complex operational processes, and increased risk for port operators and owners.

INCREASING CONTAINERIZATION OF COMMODITIES

The increasing level of commodity containerization is driven by infrastructure and port operations improvements. Currently, the level of commodity containerization in Indonesia has only reached 14% with the main commodities being manufactured products, vegetables, ready-to-eat foods, and protein (animals). As port development continues, the containerization rate is predicted to continue to increase, as illustrated in Figure 3.5. Containerization growth is predicted to experience steady growth if the GDP growth is at the predicted baseline of 5.2%. However, if there is an aggressive GDP growth is 8.5%, there will be an increase in containment growth of 4%.