The introduction of a direct container shipping route from Batam to China has been met with enthusiastic approval from local businesses in Batam. This new direct call, facilitated by Persero Batam and BP Batam in collaboration with Shandong International Transportation Corporation (SITC) Holdings, is set to significantly reduce logistics costs and streamline operations for exporters.

The new direct shipping service between Batam and China aims to enhance the efficiency of trade by eliminating intermediary stops in other ports, thereby providing a more straightforward and cost-effective logistic solution for businesses in Batam. This move is part of a broader strategy to strengthen economic ties between Indonesia and China, offering promising prospects for local industries and exporters.

The direct call is operated by SITC, launching with the ship MV SITC Hakata, which has a capacity of 1,000 TEUs and is scheduled for weekly trips between Batam and China.

The new route is expected to decrease logistic costs by about US$600 (SGD 816) per 20-foot container compared to the previous route through Singapore, potentially saving significant amounts for exporters.

Batam’s Batu Ampar Port has upgraded its facilities, now capable of handling significantly more containers per hour, which aligns with global competitive standards.

The port is set for further expansions, including the addition of more cranes and a new container yard, to accommodate a projected capacity of 2 million TEUs by 2028.

Read More: Batam Launches Direct Container Shipping Route to China, Simplifying Exports and Imports

The direct call initiative is not just a one-time project but part of ongoing efforts to expand Batam’s maritime routes to include more international destinations, thereby increasing the port’s throughput and relevance in international trade.

The establishment of a direct shipping route from Batam to China represents a significant step in regional trade development. This initiative not only benefits Indonesian businesses by reducing costs and enhancing operational efficiency but also positions Batam more prominently in the Southeast Asian maritime and trade landscape. The route facilitates easier access to Chinese markets for Indonesian products and vice versa, potentially increasing trade volumes and economic growth in the region.

The recent launch of a direct container shipping route from Batam to China has been positively received by the business community in Batam, offering a faster, cost-effective option for transporting goods. This development is expected to enhance Batam’s competitive edge in international trade, bolster economic ties between Indonesia and China, and promote more efficient and economically viable shipping solutions.

Source: Bisnis (2024)