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New foreign logistics players plot expansion

New foreign logistics companies are jostling to expand their businesses in Soewarna Integrated Business Park at Soekarno-Hatta International Airport in Cengkareng, Banten

Nurfika Osman (The Jakarta Post)
Jakarta
Sat, March 30, 2013 Published on Mar. 30, 2013 Published on 2013-03-30T15:47:52+07:00

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ew foreign logistics companies are jostling to expand their businesses in Soewarna Integrated Business Park at Soekarno-Hatta International Airport in Cengkareng, Banten.

Soewarna marketing and commercial leasing manager Binsar Pandiangan said that logistics companies from Australia, China, Hong Kong and Taiwan are waiting for slots at the business park.

“There is a huge demand from global companies and they are lining up to enter Soewarna. We plan to provide more space as soon as we can because business people cannot wait,” Binsar said.

He said the companies had want to start business immediately.

“Market in European and American countries is growing slowly these days while Asia, particularly Indonesia, offers a great market for logistics as the economies keep growing. Our large population has help make us an attractive destination for investment,” he said.

According to recent survey by consulting firm Frost & Sullivan, the logistics industry is expected to grow by 14.5 percent to Rp 1,634 trillion (US$168.3 billion) this year.

Air freight volume is projected to have the highest increase likely to rise by 19.6 percent to 1.16 million tons from just under a million tons in 2012.

Soekarno-Hatta, including Soewarna, will remain the busiest point for cargo, contributing approximately 37 percent of total air cargo.

Currently, there are 96 domestic and global logistics firms in Soewarna.

Deutsche Post DHL, TNT, TAS Puninar Express, Panalpina, Yunsen Airfreight, SDV and Expeditor are among foreign firms in the park.

Soewarna planned to expand into the air freight security management system business as regulated agent. “We are studying the potential of this business, but we are not going to be one of the agents. We prefer to provide space for regulated agents to work because we are able to create an isolated and safe area here,” Binsar said.

At present, the air cargo security system has only been implemented at two airports: Soekarno-Hatta and Juanda International Airport in East Java.

Based on Transportation Ministry data, there are 11 and two cargo inspection agents in Soekarno-Hatta and Juanda, respectively.

To secure the plan, Soewarna has to make sure they get an extension of the permit to operate on the land, rented on a rights to manage scheme from the airport’s operator Angkasa Pura II (AP II). The contract ends in 2018.

“We are optimistic that we can extend the lease because the business is going very well in Soewarna. We keep communicating our plans to AP II,” he added.

AP II spokesman Kristanto said that the firm was likely to extend Soewarna Park’s land permit because of the current grand designs for Soekarno-Hatta International Airport expansion did not show any immediate need for Soewarna’s land.

The firm is conducting massive facelift at the airport, increasing its annual capacity from 22 million passengers to 62 million.

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