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Lusa - Business News - Timor-Leste: Container import costs to drop gradually




Dili, Sept.21,2022(Lusa)-Timor-Leste's government has considered that the efficiency of the new port of Tibar bay will not represent an increase in costs for consignees in the short term, tending to gradually decrease.
The forecast is made in an analysis note, prepared by Timor's finance ministry, to which Lusa had access, on the start of operation of the infrastructure, scheduled for 30 September, and which even anticipates a reduction in costs, in terms of importing containers to the country.
"From the point of view of the efficiency of operations at the Port of Tibar Bay, the cost should not increase over time," the note said, which explained that the tariff set for operations is higher than that currently practised at the port of Dili, "was carefully assessed so as not to affect the end consumer," whilst ensuring the viability of the project.
As well as improving the functioning of the sector, the ministry of finance also said that the new infrastructure would make it possible to overcome constraints at the current port of Dili that have led to what it says are 'hidden costs', such as petty corruption.
"The Port of Dili has suffered structurally in recent decades due to lack of space, poor equipment and major logistical issues that have also paved the way for some hidden costs (petty corruption) to be charged," it explains.
"The Port of Tibar Bay, with its state-of-the-art equipment, along with infrastructure and operations of international standards, will significantly improve competitiveness over time by attracting larger vessels and the largest operators in the region. In the short term, freight rates are expected to reduce to reach similar levels to neighbouring port destinations in Indonesia and Australia," it argues.
The ministry of finance explained that the increased rates will apply to carriers, but that the increased efficiency of the new port - which allows for larger draft vessels - will not affect costs for end customers.
"With the expected efficiency operation at the Port, the overall total cost that recipients will pay to an agent to import or export containers or cargo, will be similar at the beginning of the operation and reduce over time with larger vessels, benefiting the economy and the citizens and businesses of Timor-Leste in the long term," the government said.
In parallel, the note explained, Bolloré, the Tibar Bay port concessionaire, is "assessing the overall freight costs to Dili from various destinations and shipping lines and making comparisons with surrounding ports in Indonesia, Australia and others."
The aim of the study "is to better understand the regional reality of freight costs," especially in the post-pandemic context, "with a substantial increase in cost due to logistical constraints and rising fuel prices around the world," the note added.
Specifically, and with the entry into operation of the new port, the additional costs - about §129 dollars (€129) for a 20-foot container and about $278 dollars (€279) for a 40-foot container - "will be borne by shipping companies."
In the case of importers, the government predicts a drop in costs of nearly $22 for 20-foot containers and nearly $64 for a 40-footer.
They also highlight the significant reduction in fees applied for container storage, which are $25 and $60 per day respectively for 20- and 40-foot containers, from the fifth day of storage.
The tariffs at the new port of Tibar, staggered over periods of stay, with a rate of between 5.8 and 11.6 dollars per day between the sixth and tenth day, increasing progressively, with the highest value, applied after the 21st day of storage, being 23.2 and 46.6 dollars per day, for 20 and 40-foot containers, respectively.
ASP/ADB // ADB.
Lusa



Agency : LUSA

Date : 2022-09-22 11:11:00







 

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