Local shipping industry eyes 20 percent growth in the next year


The Indonesian National Shipowners Association (INSA) predicts that Indonesia will see around 20 percent growth in the shipping industry next year on the back of the country’s healthy economic performance.

INSA chairwoman Carmelita Hartoto said that most local players, especially those involved in coal and offshore oil and gas, will add more vessels to expand their business in 2013.

“We will have 560 new ships to support national and international trade next year, especially in the coal and offshore oil industries. Despite the eurozone crisis and decreasing demand from China, we are confident that our shipping business will grow because of strong domestic demand,” Carmelita said in Jakarta on Friday at the Indonesia Shipping Outlook Seminar.

The additional 560 ships, including tug boats, bulk carriers, platform service vessels diving service vessels, and tankers, will increase the number of Indonesian flagged ships to 12,600 in 2013.

By operating 12,600 ships, Indonesian shippers are expected to be able to deliver up to 1.2 billion tons of cargo, for both the domestic and international market, she said.

For the year to date, the figure is still below 1 billion tons.

“We predicted that the one billion ton target would be only achieved in the next two to three years. But growth is faster than the estimate. The cabotage policy has also helped Indonesian shippers,” she added.

The government implemented the cabotage principle through a Presidential decree in 2005 requiring all vessels operating in Indonesian waters to be domestically owned.

The rules have brought a number of benefits to the shipping industry indicated by the increasing number of national flagged vessels for domestic maritime transportation and the amount of cargo delivered by the national fleet.

According to INSA data, Indonesia’s shipping fleet has nearly doubled from only 6,041 in 2005 to 12,000 ships in the current national fleet.

Despite the cabotage policy, several types of foreign vessels will be allowed to operate in oil and gas drilling and production activities until 2014, as local companies still cannot provide the technologically advanced facilities and personnel needed for sophisticated extraction activities.

Indonesia’s economic growth has attracted foreign shippers to collaborate with local ship owners to deliver cargo.

“Korea, Germany and Japan are among the countries that have strong interests in working with Indonesian shipping companies next year,” she said, adding that joint venture shipping companies were anticipated in 2013.

The fact that state-owned port operators Pelindo I to IV are now expanding their major ports has encouraged local ship owners to buy more ships.

One of the ports that the shippers are waiting for will be the country’s largest, Kalibaru in North Jakarta, expected to commence first phase operations in 2014 with a capacity of 1.5 million 20-foot equivalent units.



Source: http://www.thejakartapost.com/



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