Batam Authority Head Muhammad Rudi has committed to transforming Batu Ampar Port into an international logistics hub, with the initiation of the first direct container shipping route between Batam and China. Operated by Shandong International Transportation Corporation (SITC) China, this development marks a significant leap towards streamlining export-import processes, previously routed through Singapore, thereby directly connecting Batam with the Chinese market.
The inauguration of the direct call service, a direct container shipment from domestic to foreign ports without domestic stops, is aimed at boosting economic ties between Indonesia and China. The service commenced with the MV SITC Hakata vessel, symbolizing the strengthening of Batam’s position in international trade and logistics.
This initiative is in response to a directive from President Jokowi, aiming to enhance Batam’s economic development through increased connectivity.
The direct shipping line is expected to reduce logistics costs significantly, eliminating the need for transshipment fees in Singapore, thus offering a more cost-effective solution for businesses.
The service is slated to operate weekly, with the inaugural MV SITC Hakata voyage carrying 168 containers from China to Batam, and 100 containers from Batam to China.
This direct connection is anticipated to attract more companies to utilize the Batam-China route for their logistics needs, potentially making Japan the second-largest investor in Batam.
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The Batam Authority is urging local businesses to leverage this new service, which not only simplifies the export-import process but also promises economic benefits through reduced shipping costs and improved operational efficiency.
The establishment of a direct container shipping route between Batam and China signifies a pivotal moment in ASEAN-China trade relations, with implications for Singapore and other regional players. For Singaporeans and international visitors, this development highlights the growing importance of Batam as a logistical and economic hub, fostering increased business opportunities and regional connectivity.
The launch of a direct shipping route from Batam to China, facilitated by the Batam Authority and Shandong International Transportation Corporation, marks a significant advancement in international logistics, offering direct connectivity and streamlined export-import processes. This initiative is set to bolster Batam’s economic growth, reduce logistics costs, and further integrate the ASEAN and Chinese markets, benefiting businesses and economies in the region.
Source: Detik Finance, MSN (2024)
