The Indonesian resort island of Batam has opened its first container shipping link with China, a move estimated by the municipal authorities to save US$600 in shipping costs per container.
Speaking at the arrival of the 2001-built 1,098 TEU SITC Hakata at Batam’s Batu Ambar Container Port on 31 March, Muhammad Rudi said, “We have realised a direct shipping connection to China, after installing a quay-type container gantry last year. Now, there’s no need for containers from China to be transhipped in Singapore, coming to Batam, and this is an opportunity to expand direct shipping links, not only to China but also to other countries. We hope that all companies in Batam will take advantage of direct shipping connection to China.”
The direct shipping service was initiated by Persero Batam and the Batam Concession Agency in collaboration with SITC Container Lines, a Hong Kong-based intra-Asia carrier. The service connects Batam with the southern Chinese cities of Guangzhou and Shenzhen. Indonesia’s many islands often mean that for certain islands, seaborne container transportation involves transshipment in either Jakarta, Surabaya, or Singapore.
The SITC Hakata carried 168 containers from Batam, and Persero Batam director Arham Torik estimates that for a start, four or five companies in Batam will use the service to export goods to China.