ACknowledge

AC's knowledge site

WFPSS

WFPSS is the World Food Programme Shipping Service which operated beach-ramp cargo ships on Aceh's coast during 2005-2007 after the Asian Tsunami hit Indian Ocean communities on Boxing Day 2004, killing a quarter of a million and displacing millions.

World Food Programme Logistics website: http://www.wfp.org/operations/Logistics/

AC reports and research:

29 Sep 06: Aceh/Nias ships off-hired as aid cargo plunges to 1,000 MTs a week
The Banda Aceh-based World Food Programme Shipping Service which moved about 11,000 metric tonnes (MTs) a month is now down to 6,000 MTs a month, since introducing freight tariffs on 1 August.

On Nias Island, free delivery of aid organisations' freight is being resumed by IOM until end-December using 20 four-tonne trucks - 29 Aug 06. The 
International Organisation for Migration announcement was made through WFP Shipping Service. WFPSS took over the leased landing craft sea connection from Sumatra mainland which IOM ran until last March, carrying up to 24 fully laden 24 wheeler trucks. Details tel 62 (639) 22240, Fax: +62 (639) 22240.

WFPSS predicts freight recovery - Shipments by smaller NGOs expected to increase
Construction commitments in the next six months should see WFPSS  shipments by smaller NGOs increase,  led by Concern which will have substantial freight for Sabang. With increased work also due to start on Nias, UNOPS and UNICEF should also increase their shipments. Meantime the split of shipments is NGOs 20%, UN 29%, IFRC 41% and by government/others 10%.

Big drop in freight shipped after tariffs started 1 August
Bulletin from users meeting 7 Aug 06 - with cost recovery justified for sea cargo, cumulative totals drop, Nias assessed, contacts given.

Freight chargeable on WFP Shipping Service from 1 Aug 06
For the main route to Banda Aceh from the nearest container port Belawan (Medan) the rates are $83 ton, $50 cbm and $2,069 truck - with WFPSS indications based on IOT Trucks of median size 2 CT.

Customs and documentation - timber  requires special attention - a ship for Oxfam detained - Issues raised in the group were a new timber documentation manual, Oxfam timber imports, cement and customs.

July WFPSS users meeting: WFPSS is currently operating 9 LCTs and three coasters, most loading out of Belawan - They take timber from Kalimantan, ferry shipping containers from Belawan for BRR, and move construction materials for UNDP. One of WFPSS's landing ships in its second month stuck at Sampit because of timber documentation issues.  Another was delayed 14 days in Samarinda awaiting late arrival of cargo.

From WFPSS June 06 meeting with shippers
Included: New vessel charters, timber from Kalimantan, construction materials for UNDP, shipping containers for BRR, timber documentation issues, Oxfam ship delay.

WFPSS's coastal services "as and when required"
- A "Common Sea Service", the WFP Shipping Service, (or WFPSS) support reconstruction efforts by humanitarian agencies in Aceh and Nias in Indonesia in the wake of the December 2004 tsunami.There is no set sailing schedule for the WFP Shipping Service fleet, as cargo is moved on an as-needed basis.

Aceh/Nias ships off-hired as aid cargo plunges to 1,000 MTs a week

29 Sep 06: The Banda Aceh-based World Food Programme Shipping Service which moved about 11,000 metric tonnes (MTs) a month is now down to 6,000 MTs a month, since introducing freight tariffs on 1 August.

July, the last month of freight-free shipments, had double the previous monthly level, with  22,000 MTs shipped as Red Cross, NGOs and other shippers rushed to beat the WFPSS's new cost recovery regime.

Unfortunately for the operators, the cost recovery had received only US$66 as at 18 September, against US$260,669 invoiced.

WFPSS  had no option but to offhire ships, with the 2,200 DWT conventional freighter MV Bunga Sejati  the latest  "re-delivered to owners due to no availability of cargo".

WFPSS now manages on four LCTs with schedules depending on cargo availability, including voyage charters offered for shippers interested in sole use.

The four front ramp landing carrier transporters (LCTs)  remaining on charter to WFPSS are:
. Labitra Hanny, 300 MT, 365 sqm
. Labitra Adinda, 1000 DWT, 560 sqm
. Labitra Nakita, 450 MT, 430 sqm
. Niaga Jaya 12, 1000 DWT, 722 sqm

The pictured LCT Sumber Power (800 MT, 336 sqm) was off-hired last month.




WFPSS predicts freight recovery - Shipments by smaller NGOs expected to increase

Construction commitments in the next six months should see WFPSS  shipments by smaller NGOs increase,  led by Concern which will have substantial freight for Sabang. With increased work also due to start on Nias, UNOPS and UNICEF should also increase their shipments. Meantime the split of shipments is NGOs 20%, UN 29%, IFRC 41% , Inter-Government Agency 4%, BRR 6%, Donor 0%, Government 0%.

WFPSS's 14 August bulleting reported currently nine shippers accounting for 1,088 MTs and  926 cu m shipped in the past two weeks. In the freight-free period to 1 Aug 06, shipments totalled a cumulative
66,422 MTs and  214,223 cu m.

Analysis of contract shipments showed freight slowly a second week increase of 20%.

Confirmed Shipments on hand were 2583 MTs and 2511cu m.

WFPSS has introduced cash-in-advance payments for shipments.

A leading user until August, British Red Cross said it would no longer use the service when cost recovery was introduced. But WFPSS has received three CMRs totalling about 1500MTs.

The parent body IFRC currently has shelters and timber consigned through to Calang and Simeulue, with bookings awaiting HO Geneva confirmation.

Concern (the NGO) has freight for Sinabang. There is a current lull in activity during a mid term review with new tenders being sought. Concern plan to ship timber, doors, windows, and roofing materials to Sinabang. Discussions are underway about time-chartering. Concern also have a large number of septic and water tanks to be shipped, with WFPSS seeing how strapping to pallets might reduce the space and handling cost.

UNOPS and UNICEF are about to begin construction of a large number of steel framed school buildings on the island of Nias.

WFPSSS has a new Head of Logistics Coordination, Alan Johnson, based in Banda Aceh and a new Logistics Officer, Kevin Hawley, initially to be based in Nias.

Shipping Service Contacts are:
Banda Aceh – Joergen Brodersen: 08126988093 / Paul Arbon: 08126992513
Medan - Chris Clark 08126991215 / Prakasah Bhide 08126991216 / Muhammad Irsan 0811607992 / Peter Holtsberg
08126991455
Calang – Capt Raj 0812 698 9890 /Nasrullah: 08126991755 /El Motalib 0812 699 2247/ Budi Candra 0812 699 1759
Simeulue – Brian Williams 081362417692 / Eric Mmari 08126991224
Nias – Kevin Howley 08126992514 / Vinod Rajanathan 08126992258

Source: www.wfpss.org

Big drop in freight shipped after tariffs started 1 August

Bulletin from users meeting 7 Aug 06 - with cost recovery justified for sea cargo, cumulative totals drop, Nias assessed, contacts given.

Cost recovery justified for sea cargo
Much discussion has taken place. At the behest of BRR and as part of the requirement for further MDF funding of the shipping service, cost recovery has become mandatory. Despite the reticence to accept the tariffs, competitive transportation alternatives are not possible. Users of the service will need to conduct due diligence on other alternatives and become comfortable with real costs associated with transport. Statistics on costs, times etc. are being compiled by WFPSS and illustrate a compelling argument for sea transport on most routes currently served by the shipping service.

Cumulative totals drop
IFRC 41pc, UN 29pc, NGO 20pc, BRR 6pc, Inter-govt 4pc:
For week ending 31 Jul 06 = 66,422 MTs + 214,223 Cbm
For week ending 7 Aug 06 =  495 MTs + 337 Cbm

The total number of users of the Shipping Service remains 80. (Discharge ports remains 28.)

LOGISTICS DEVELOPMENTS - Nias Assessment
In the last week of July, WFPSS conducted a thorough Logistics Capacity Assessment (LCA) on Nias. One new landing site near Teluk Dalam was identified, as wells as one additional landing site at Afulu (north-west coast). Approximately 600km of road network was traversed and 350 GPS points taken for culvert, bridge and other locations. The team also identified a need for preventative maintenance of the jetty at Sirombu (west coast). Full details of the LCA will be available at www.wfpss.org in the near future. Warehousing in Nias & the Cessation of the WFPSS Ferry service to Sibolga. WFPSS is planning to takeover the management of the UNHCR common warehouse (G. Sitoli). The warehouse will remain available for common use by the humanitarian community for transit warehousing. Following the cessation of the WFPSS ferry service (as of August 1 2006) from Gunung Sitoli to Sibolga, this warehousing will continue to be of great use to the humanitarian community. The ferry service has now reverted to the government owned operator. The Sinabang harbour area remains congested with offloaded cargo that remains uncollected. Users of the facility are required to remove their cargo within 24 hours of dispatch (BRR directive).

Shipping Service Contacts
Banda Aceh - Morten Christensen: 08126988093 / Paul Arbon: 08126992513 Medan - Chris Clark 08126991215 / Prakasah Bhide 08126991216 / Muhammad Irsan 0811607992 / Peter Holtsberg 08126991455 Sibolga - Capt Raj 0812 698 9890 / Budi Candra 0812 699 1759 Calang – El Motalib 0812 699 2247 Simeulue – Brian Williams 081362417692 / Nasrullah: 08126991755 / Nias - Sanjay Sen 08126992245 www.wfpss.org

Source: WFPSS pdf download

Customs and documentation - timber requires special attention - a ship for Oxfam detained

Issues raised in the group were a new timber documentation manual, Oxfam timber imports, cement and customs.

Timber documentation
John Brady advised the group that BRR has finalized the guidelines for timber documentation requirements subject to approval by Ibu Nannie, Head of BRR Tim Terpadu. He reminded everyone that as long as there is illegal logging in Indonesia, we will all continue to face
challenges with timber shipments. He pointed out that any agency planning to purchase large amounts of timber should have a sophisticated procurement process in place including individuals who can travel to the field to conduct quality assessments etc.

He suggested to agencies to import timber. While this is more costly, agencies can be sure that they will receive good quality timber with less hassle, as documentation requirements for timber coming from outside Indonesia are less stringent.
Aceh timber trade contracts

Agencies were advised of two contacts at the Timber Help Desk:
Ridwansyah 08176588420
Saodah 085260188931

Oxfam timber imports
Ludovic Berthy from OXFAM (Lberthy@oxfam.org.uk 08126989612) told the group that for their timber shipments they make arrangements with the supplier to deliver the cargo at the final destination and check the documentation only upon arrival. If documentation is not in order, they do not accept the cargo. Unfortunately when you offload the cargo from a ship to trucks, a new SKSHH document is required for each truck which makes the whole operation too complicated. As a result, it may be beneficial to load the timber onto trucks and ship it as RO-RO cargo, however this is more expensive because you are paying excess for the trucks. The suggestion to import timber from outside Indonesia was made again.

Cement
The issue of cement shipments was raised and users wanted to know if any more information has been obtained regarding regulations? John B. told the group that while a regulation regarding cement shipments does exist, NGOs should not encounter problems.

Customs
WFPSS website link to customs regulations, for contacting a customs expert at the one-stop-shop, Tim-Terpadu. In addition, they may stop by WFPSS offices and speak with Cut Yusra who can provide them with general info on customs regulations.

Freight chargeable on WFP Shipping Service from 1 Aug 06

Effective from 00:01 hours on 1 August, the WFPSS tariff sets US dollar rates per ton, cu m and an indicative rate per truck, as trucks are the main mode of transport on the service's numerous front-ramp landing ships.

For the main route to Banda Aceh from the nearest container port Belawan (Medan) the rates are $83 ton, $50 cbm and $2,069 truck - with WFPSS indications based on IOT Trucks of median size 2 CT.

In terms and conditions, the rates are inclusive of supervision in load and discharge ports, management of bookings and consolidation of cargo for partial shipments, full logistics support in discharge ports including the provision of handling equipment, stevedoring in load and discharge ports and agency fee and port charges.

In remarks, all contracts made between agencies and contractors should stipulate FOB delivery.

Bookings can be made on the website www.wfpss.org or phone 62 651 42937 - Banda Aceh.

The original WFPSS plan of action signed 29 September 2005 estimated 600,000 metric tones of non-food items would require shipping in the waters of Aceh and the islands of Simeulue and Nias in the ensuing 12 months, which was freight-free for NGOs and other shippers on funding provided by the World Bank Multi Donor Fund.

Tariff download link location:
http://www.wfpss.org/_documents/WFPSS Tariffs.pdf

July WFPSS users meeting: WFPSS is currently operating 9 LCTs and three coasters, most loading out of Belawan.

The landing ships timber from Kalimantan, ferry shipping containers from Belawan for BRR, and move construction materials for UNDP. One of WFPSS's landing ships was in its second month stuck in Sampit because of to timber documentation issues. Another was delayed in Samarinda, so far waiting 14 days for the cargo to arrive.

Zhen-Zhen gave the meeting an overview of completed shipments to date. The number of users has increased from 74 to 80 since last week. She mentioned that since the announcement of Cost-Recovery, bookings have flowed in steadily and currently all vessels are booked until
the end of July.

ITEM 3: Cost Recovery. Peter told the group that WFPSS is concerned that some contracts with suppliers have stipulated delivery to the final destination, effectively creating a situation in which we have been putting money into the pockets of suppliers. Agencies assured that they typically request two rates from the suppliers: one for delivery with WFPSS and one for direct
delivery to include stevedoring in both the load and discharge ports.
However if an agency should chose to arrange for its own stevedoring we will deduct the amount from the total cost accordingly.

Blading counterpart: Peter told the group that invoices will be produced based on the verification of the NNCR (Non-negotiable cargo receipt) by the Shipping Unit in Banda Aceh. The NNCR is similar to a Bill of Lading however unlike a BoL/blading it has no commercial value. Payments will be invoiced directly to the agency and will be expected within 30 days of issuance.

From WFPSS June 06 meeting with shippers

The Shipping Service had chartered two new vessels in Jakarta. The Niaga Jaya 12 loaded the first cargo out of Jakarta comprised of approximately 600 MT of construction materials for UNDP.  The Bintang Samudera was ready to load materials including the remainder of construction materials for UNDP and some containers for BRR. In addition, WFPSS advised it could pick up cargo from Jakarta to a minimum 300 MTs, utilising vessels carrying timber from Kalimantan.

By second week of July, WFPSS needed to land 300 units in the north and south of Simeulue Island, for IFRC shelter units being delivered in mass from Medan. Liaison would be necessary with CARE and other implementing partners to identify possible storage places for the shelters.

IFRC had experienced problems with road transportation and the confiscation of trucks. One main problem seems to be that suppliers are under the impression that they do not need to issue the required documents for timber shipments.

WFPSS had also experienced troubles. A timber shipment on L/C Sumber Power was arrested in Ulee Lheu port because of alleged incomplete documentation. There was a conflict between the authorities in Medan, who claimed that the documentation was complete, and those in Banda Aceh who said that the documents were not in order.

BRR was due to publish “Required Documentation for Timber Shipments in Indonesia" - meantime there was a Fact Sheet available on Timber Procurement within Indonesia

Constraints for timber shipments include the following:
• the need for accurate shipping dates, which often change due to delays: If the dates on the documentation are wrong, the docs are null and void
• suppliers do not usually know whether the timber is even legal
• each agency is dealing with problems individually rather than one focal point acting as a united front on behalf of all agencies (as was the case with UNJLC)
• guidelines on what documents are required have not been finalized Jens told the group that WFPSS in Belawan is working closely with Timber officials to ensure that future shipments go smoothly.

Oxfam had a ship stuck in Calang for three weeks earlier in the year when police demanded payment to release the cargo.

WFPSS's coastal services "as and when required"

Terms of WFPSS services: A "Common Sea Service", the WFP Shipping Service, (or WFPSS) support reconstruction efforts by humanitarian agencies in Aceh and Nias in Indonesia in the wake of the December 2004 tsunami. There is no set sailing schedule for the WFP Shipping Service fleet, as cargo is moved on an as-needed basis, or as and when required.

WFP Shipping Service will  only consider bookings made directly by local NGOs, INGOs, UN agencies or the BRR.  Once a booking is made, the WFP Shipping Service team will notify you by phone or email of the latest cargo shipment schedule.  The time-frame of the initial contact depends upon when the next available vessel will be ready for loading.  To learn more about the booking process, please download this..

In addition to main route services from Belawan (Medan), WFPSS operates a regular LC ferry service between Sibolga and Nias.  For an overview of ports that are served regularly and the estimated sailing times between ports, see WFPSS website.

Expanding the number of coastal landing points: WFPSS will provide quick fixes for the most urgent requirements by building jetties based on stacked containers and mattings at suitable beaches, and will charter landing craft to move reconstruction material.

At its peak, WFPSS will manage up to 24 landing craft and one feeder ship, procuring special cargo-handling equipment to guarantee the quick turnaround of valuable shipping assets at loading ports and discharge sites.