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ocal cargo service provider RPX Group plans to strengthen its network by opening more distribution outlets across the country as well as form partnerships with online shops to further strengthen its logistics business.

Vice president for operations and customer service Muhammad Kadrial said in Jakarta on Friday that the company planned to open distribution centers in 110 new locations to extend its distribution reach.

'We are going to penetrate smaller or secondary cities at both provincial and regency levels, particularly in Sumatra, Java and Sulawesi, because the demand in the logistics and fast moving consumer goods sector is increasing every year,' Kadrial said.

The country's logistics industry is expected to grow by 14.5 percent to Rp 1,634 trillion (US$168.3 billion) in 2013, according to recent research by business consulting firm Frost & Sullivan.

Almost half of the new distribution centers will be in Java as it remains the most populated and better developed island. Currently, he said the firm had distribution centers in 360 locations nationwide, including Papua.

'We even operate an aircraft to help distribute logistics in Papua, especially in the south part where the terrain is rugged,' he said, adding that the company operated a Boeing B737-200F to serve this particular area. He also said partnerships had been formed with online shops, such as Lazada, this year to help increase the volume of goods transported. This business is promising because more and more people are becoming familiar with online shopping, he said.

Frost & Sullivan, for instance, says the country is projected to see a sharp increase in Internet users from around 47 million in 2011 to 175 million by 2016.

In addition to the additional points and teaming up with several online shops, the group will add more than 50 new vehicles to its fleet in 2013 to help support its growth.

'We plan to add to our fleet of trucks and motorcycles this year so that it can help us create a stronger network as we add more points,' he went on.

This year's expansion plan is part of RPX Group's commitment to invest US$50 million from 2011 to 2015, in order to strengthen its position in the domestic logistics market.

Moreover, he said the group recently opened a new warehouse at Soekarno-Hatta International Airport in Cengkareng, Banten, just west of Jakarta, that would help it further grow its business.

The new 5,000-square-meter facility will increase the company's cargo-handling capacity from
8,000 tons monthly last year to 11,500 tons monthly by the end of 2013.

'We want to establish two more new warehouses [this year], in Surabaya [East Java] and Makassar [South Sulawesi],' he said.

However, he declined to provide details of the upcoming projects.

Since it was established in 1985, the company has collaborated with the country's largest low-fare carrier Lion Air, Japan Airlines (JAL) and FedEx Express (FedEx), a subsidiary of FedEx Corp., the world's largest express transportation company.

Currently, the company operates more than 370 vehicles, including two Boeing 737-200 freighter planes in Papua and Jakarta, and has 155 outlets, 48 agents and 18 branches in more than 12O cities across the archipelago.