Post Merger Review and Evaluation

Background

• In October 2021, the Indonesian government consolidated Pelindo I, II, III, and IV into a single entity - Pelindo - with the goal of delivering benefits to key stakeholders, including the port ecosystem, the government and the company itself.

• Subsequently, Pelindo established four sub-holdings to manage port services based on each sector, namely container (SPTP), non-container (SPMT), marine and energy (SPJM), and logistics services (SPSL).

• After the merger, Pelindo’s group undertook business transformation and several strategic initiatives to add value, improve cost efficiency and enhance revenue.

Client Objectives

• To conduct an overall assessment and evaluation of the implementation of strategic initiatives and corporate actions carried out by the client and assess the implications of the Pelindo merger from the perspective of the government, port ecosystem and the company itself.
• To conduct a technical overview and evaluate select strategic initiatives of the Pelindo Group.
• To propose improvement recommendations for current project implementations and new business proposals for potential future growth based on domestic and global port and logistics industry trends.

Drewry Approach

• The analysis was carried out using a combined approach of desktop analysis and primary survey.
• The primary survey involved discussion with various stakeholders in the port ecosystem to obtain their views on the impact of the client’s implemented strategies.
• Drewry reviewed the objective of Pelindo’s merger, the master plan and each of the previous Pelindos’ business activities.
• It also involved creating a list of parameters to assess the operational performance across all the client’s business activities.
• The analysis involved the operational performance before and after implementing the initiative strategies.
• We also compared the data analysis results with Drewry’s AIS to check the robustness of the analysis.

Results Achieved

• Drewry developed an operational parameter across all the Client’s business activities. The parameters would be used by the client as a reference to assess their operational performance.
• The client received the result of Drewry’s analysis as well as an improvement recommendation advised by Drewry.
• According to Drewry’s findings, Pelindo demonstrated various achievements in its efforts to transform port services through the standardisation and systematisation of port operations as part of its ongoing strategic initiatives. Pelindo must continue to enhance its services in a dynamic global environment to strengthen its position as a competitive and efficient port operator and strive to be world-class. This will not only increase customer satisfaction but also contribute to the creation of an integrated national port ecosystem, ultimately delivering a positive impact on the national economy and international trade.