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Batam Continues Readying itself As A Strategic Hub of International Logistics
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Located strategically along major shipping routes, the municipality of Batam is also adjacent to Singapore and Malaysia.
The city administration manages facilities such as the Free Trade Zone and the Special Economic Zone (KEK), as well as Hang Nadim International Airport and the Batu Ampar Port, both of which fall under the Badan Pengusahaan Batam (BP Batam). These high-value assets equip Batam with significant gateways for both air and sea transportation to support local business and trade sectors.
Hang Nadim International Airport is soon to be transformed into a logistics hub that will boost the Batam economy and local industries. This development also aims to attract cargo traffic from Western regions such as the Americas and Europe to enable their transiting in Batam en route to Australia. The airport will also have an expanded capacity to serve as an alternative transit point for domestic airlines flying specialized cargo routes to and from China, Japan, India and the Middle East, without having to transit in Singapore.
To realize this plan, constructing and expanding of the airport’s cargo facilities is essential. The planned cargo apron is 500 meters long and 168 m wide, which will allow it to accommodate up to five wide-body aircraft, such as the Boeing 777.
In comparison, Hang Nadim airport's current cargo building measures 80 m by 32 m.
Future expansion plans include building a cargo terminal or building covering approximately 9,600 square meters by expanding previous developments that BP Batam completed at the end of 2020: Taxiway and Apron 04.
The cargo apron’s development aims to support the cargo building and enhance Batam's competitiveness, with the ultimate goal of transforming Hang Nadim International Airport into the logistics hub airport of western Indonesia.
Muhammad Rudi, the Chairman of BP Batam, noted that other development plans in the pipeline included those for Batu Ampar Port and other seaports. Airport and seaport expansion was vital to developing Batam into an international logistics hub, which would bring many benefits to both the local and national economies.
BP Batam most recently signed a memorandum of understanding (MoU) with PT Bandara Internasional Batam (BIB), a consortium consisting of PT Angkasa Pura I, Incheon International Airport Corporation (IIAC) and PT Wijaya Karya Tbk (WIKA).
BIB, the winner of the auction for the Hang Nadim International Airport Batam public-private cooperation project, is to manage the as the implementing business entity (BUP).
In the maritime sector, BP Batam has developed Batu Ampar Port by acquiring a ship-to-shore (STS) crane from South Korea. The addition of the STS crane is expected to help expedite the container loading and unloading process at the Batu Ampar Public Terminal so it is faster and more efficient.
Weighing 760 tonnes, the STS crane has the capacity to load and unload a maximum of 35 containers per hour, reducing both terminal wait and dwell times at Batu Ampar and in turn, reducing logistics costs for businesses.
The acquisition of the STS crane is seen as a significant improvement to the terminal’s facilities, given the high annual container traffic of more than 600,000 units at Batu Ampar Port. With the Korean-made STS crane enhancing BP Batam’s operational capacity, all domestic and international loading and unloading processes at the Batu Ampar Public Terminal will be prioritized.
BP Batam is also building roads to enhance connectivity between various industrial zones, including ongoing construction on an arterial road that will connect Batu Ampar with Batu Besar and Nongsa.
The expansion of Hang Nadim International Airport involving multiple key stakeholders and the steady development of Batu Ampar Port are already producing positive impacts as part of the grand plan of transforming Batam into an international logistics hub. Along with the region’s designations as a Free Trade Zone (FTZ) and Special Economic Zone (SEZ), Batam is set to emerge as a national and international hub for aviation and logistics.
