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)