A port is an anchorage area for vessels that need to unload or load passengers or cargo before resuming the voyage. It is located in the land-and-water area defined by a certain border and is equipped with safety and support facilities.
It has a crucial role in connecting logistics points, becomes an international trade gate, and provides goods storage. Then, what is a port, and what are its functions? Read this article below.
What Is a Port?
A port is an area designated as a layover place for vessels, either for anchoring, resuming a voyage, or unloading and loading cargo. In general, a port is divided into two categories: public and special.
Public ports serve public’s interests and are managed by port authorities. On the other hand, special ports are for certain purposes and usually managed by private companies.
Data from the Indonesian Ministry of Transportation reported that Indonesia had 2,439 ports in 2020. This figure increased 38.6% from the previous year, with 93,737 sea transportation units leveraging the ports.
The data also revealed that a port has a significant role as a supporting infrastructure for trade, recreation, and economic activity in Indonesia.
Functions of Ports
The existence of a port is not only a place for ships to dock but also supports the flow of goods, passengers, and industrial activities. Here are some functions of ports that you need to know:
1. Logistics Distribution Point
A harbor has been a logistics distribution point from one area to another. The unloaded goods will be delivered to factories or other destinations using land transportation, such as trucks and cargo trains.
2. Regional Gate
A port works as a gate to a country, city, or region. A port serves as a "door" to the inflow and outflow of goods and people as ships arrive from other regions with cargo or passengers.
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3. International Trade and Commercial Center
As a hub for maritime transportation, ports serve as centers of international trade. Merchants, businesspeople, and suppliers utilize ports to distribute products and expand their business reach.
4. Unloading-Loading Area
One of the primary functions of a port is to be a place for unloading and loading goods from and to vessels. The goods could be raw materials, export or import commodities, crops, or certain goods needing specific handling (including cranes and containers).
5. Strategic Location for Operational Process
Many industries build factories or headquarters near the port to reduce transportation costs. As a result, access to feedstocks becomes easier, allowing the production process to be more efficient (especially for export-import businesses).
6. Storage Facility
Aside from becoming a goods-loading area, a port also has a temporary warehouse to store goods before distribution. The services are various, from bulks, fishes, to special goods storage.
7. Distribution Chain to Consumers
A port becomes a part of the distribution chain to make sure that the goods reach consumers. After undergoing the production phase, the goods will be carried by sea freight and distributed through ports to various destinations.
Types of Ports
According to the functions, reaches, and roles in the transportation system, a port is divided into several types:
1. Main Port
The main port handles large-scale maritime transportation and transshipment activities for both domestic and international routes. It is the starting point or destination for passengers and goods, while also serving interprovincial crossings.
2. Seaport
Seaports serve maritime transportation and crossings in locations located at sea. These ports play an important role in the international economy, as they are entry points for ships from various countries. Generally, these ports have long docks for large ships to berth.
3. Collecting Port
The collection port serves medium-volume domestic ship transportation and transshipment.
4. Feeder Port
A feeder port handles limited domestic vessels' transportation and transshipment. It supports the main and collecting port as well as aids the origin or destination of passengers and goods within the shipping range between regions.
5. Regional Feeder Port
A regional feeder port also operates limited domestic vessel transportation and transshipment. However, the service is only for intercity or interdistrict travel in a province.
Certain ports have a port authority, which is a governmental authority working to organize, control, and supervise all commercial activities in the ports. Generally, there is a Harbor Master and Port Authority Office (Kantor Kesyahbandaran dan Otoritas Pelabuhan/KSOP) or a Port Business Entity (UPP) as port authorities in Indonesia.
Read also: New Chemical Vessels to Boost Indonesia’s Role as Regional Chemical Distribution Hub
Benefits of Ports
Along with its role as the center of sea transportation activity, a port also has huge impacts on the economy and trade. Here are some advantages of ports you should know:
1. Creating Job Openings
Ports open up many job opportunities because their operations require workers with specific skills, ranging from administrative staff and heavy equipment operators to loading and unloading workers. In fact, ports also hire freelance workers when needed.
2. Facilitating Export and Import Needs
Sea transportation makes export and import activities easier, especially to reach international markets. Export helps increase the nation's foreign exchange and introduces local products abroad, attracting more foreign investors to invest more in our country.
3. Increasing Country’s Income
Trading activity in the port also contributes to the country’s income through customs and taxes, especially from the imported goods.
4. Supports Interregional Economy
A port does not only support international trade but also interregional goods distribution in a country. It helps dock vessels and maintains the economic cycle.
5. Encourage Infrastructure Development
The ports' development can trigger the advancement of surrounding areas into new economic centers. In addition, it also encourages the buildout of supporting infrastructure, such as roads and other transportation access.
Reliable Port and Storage Solution
Chandra Daya Investasi (CDI), a subsidiary of Chandra Asri Group, provides integrated port services and petrochemical raw material storage solutions.
These services include liquid bulk storage facilities and sea dock management to facilitate the efficient handling of raw materials and completed goods.
To address the increasing demand for chemical and petrochemical imports in Indonesia, CDI provides customized solutions for businesses to ensure efficient and safe logistics and supply chain management.
One of our main pillars is PT Redeco Petrolin Utama (RPU), which has been operating since 1986 in Banten. RPU is prominent as a bulk liquid tank manager with expertise in the receipt, storage, as well as handling of chemicals, petrochemicals, and refinery products.
All operations are carried out with a commitment to quality, safety, environmental sustainability, and relevant ISO standards.
Furthermore, RPU operates two docks, each 200 meters long, capable of serving ships up to 35,000 DWT with a draft of 10 meters. In addition, there are 72 tanks with a total capacity of 130,000 m³.
Supporting facilities include a Centralized Filling Station (CFS) for various types of land tankers and a Customer Order Service (COS) system for arranging product pickup plans.
International safety standards are also applied, including a fire protection system and oil booms for handling oil spills. With these capabilities, CDI not only provides port facilities but also provides reliable storage solutions for chemicals and petrochemical products.
For maritime logistics needs, CDI's services are connected to Chandra Shipping International (CSI) as part of the Chandra Asri Group's logistics ecosystem. As #YourGrowthPartner, CDI is ready to support your port infrastructure and storage needs that are safe, efficient, and of high standard for your business growth.