New cargo hubs needed to increase goods flow

New cargo hubs needed to increase goods flow

JAKARTA (JP): The government should add more air cargo centers
for foreign cargo carriers in the country, chairman of the
Association of Indonesian Postal Services Rudi Pesik has said.

Rudi said Saturday that new cargo hubs, in addition to the one
in Batam, would increase the flow of goods into the country by 30
percent to 50 percent and improve the cargo industry's
efficiency.

"The hubs should be in Medan (North Sumatra), Manado (North
Sulawesi), and Bali to cover each part of the country," said Rudi
who is also chief commissioner of PT Birotika Semesta which owns
the license to operate DHL Worldwide Express freight service in
Indonesia.

"The Manado hub, for example, would cover the eastern part of
Indonesia," he said after DHL's launch of its new advertising
campaign yesterday.

The government ruled last year that all foreign cargo flights
must load and unload at Hang Nadim airport on Batam island near
Singapore.

The measure was to stimulate the role of domestic airlines in
air freight services.

Cargo is forwarded by feeder freighter services operated by
domestic airline companies.

Many freight companies complained that having to load and
unload cargo in Batam resulted in delays, as the process was not
handled efficiently.

They also complained that Hang Nadim's cargo terminal was not
adequate, did not meet international standards and as a result,
the flow of cargo usually took longer due to the limited airline
space and the transfer process.

"The airlines usually put parcels fourth priority after postal
items, perishable goods like vegetables and meat, and newspapers
and magazines," he said.

Cost

Having to use domestic airlines to distribute cargo also
increased costs, he said.

"The cost of feeder freighter services in Indonesia is still
one of the most expensive in Asia," he said.

He said that to avoid the high cost, many freight companies
still preferred loading and unloading their cargo in Singapore.

At yesterday's ceremony, DHL Worldwide Express launched a new
advertising campaign for Southeast Asia with the theme "Beat The
World".

PT Birotika Semesta now operates 65 branches, 13 of which are
in Jakarta.

Rudi said the company dominated about 55 percent of the market
share in the country, with revenue of about Rp 100 billion
(US$41.66 million) last year.

Its shipment capacity was about Rp 10,000 tons a day, 90
percent of which came from exported items, he said.

The company expects a 30 percent growth in business this year,
Rudi said. (das)