Indonesian port rejects call to end terminal handling charge
State port operator Pelindo II refuses pressures from several logistical businesses to eliminate terminal handling charge (THC).
President pirector of Pelindo II, R. J. Lino revealed the pressures for THC elimination could not be granted since it would reduce the company's revenues.
"THC cannot be eliminated. Besides, THC is for the government to decide," he said.
According to him, THC, which consists of container handling charge (CHC) and surcharge, applies to all seaports worldwide.
Lino added it was also difficult to eliminate surcharge since nearly all ports in Indonesia applied surcharge.
"Surcharge influences port performance. At any port in the world, surcharge exists. Besides, surcharge at Tanjung Priok port is low."
Foreign shipping companies are allowed to collect a THC of US$95 per TEU, which consists of $70 in CHC and $25 in surcharge, and $135 for a FEU,consisting of $105 in CHC and $30 in surcharge.
President pirector of Pelindo II, R. J. Lino revealed the pressures for THC elimination could not be granted since it would reduce the company's revenues.
"THC cannot be eliminated. Besides, THC is for the government to decide," he said.
According to him, THC, which consists of container handling charge (CHC) and surcharge, applies to all seaports worldwide.
Lino added it was also difficult to eliminate surcharge since nearly all ports in Indonesia applied surcharge.
"Surcharge influences port performance. At any port in the world, surcharge exists. Besides, surcharge at Tanjung Priok port is low."
Foreign shipping companies are allowed to collect a THC of US$95 per TEU, which consists of $70 in CHC and $25 in surcharge, and $135 for a FEU,consisting of $105 in CHC and $30 in surcharge.