Indonesia to invest US$2.47 billion to boost port's to 18 million TEU

INDONESIA Port Corporation (IPC), the largest port operator in Indonesia, is planning to invest US$2.47 billion in the development of Kalibaru Port, an extension to the existing Tanjung Priok Port in North Jakarta, Indonesia, according to UK's Port Technology International.

Upon completion in 2023, Kalibaru Port, or New Priok, will more than triple the annual capacity of Tanjung Priok from five million TEU to 18 million TEU.

Indonesia Port Corporation confirmed earlier this month that it had received approval from Indonesia's Presidential Regulation to begin works on the ambitious project, the port operator said in a statement.

The first phase of the project will include the installation of $1.38 billion worth of container terminal infrastructure and related equipment, while $730 million will be made available to construct the port's new petroleum product terminal. In addition, a further $305 million will be used to build toll roads, a power station and industrial area, with the remaining $50 million earmarked for other services.

IPC also said that further funding in the development of New Priok could come from outside investors and in the form of loans from national and international lenders.

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AIR ASIA Indonesia fly-thru service, Bandung-China

Air Asia Indonesia held a fly-thru service, linking Bandung with major cities in China. Bandung - China interconnection service which was launched two weeks ago it easier for passengers to fly to China, because it uses only one ticket although have to transit via Kuala Lumpur (KL).

Air Asia Indonesia Communications Manager Audrey Progastama Petriny said Air Asia fly thru add service in order to connect the major cities in Indonesia to China every day.

"Air Asia fly-thru service connects Jakarta, Bandung, Medan, and Surabaya to several cities in China such as Guangzhou, Shenzhen, Macao, and Hong Kong," said Audrey.

So far, Bandung residents who want to travel to China to go through Kuala Lumpur or Singapore first. Flights to China to do with connecting flights to Kuala Lumpur where consumers no longer need to take care of the new airline tickets. "One ticket for the two destinations," she said.

Passengers fly thru service users from Bandung to make a reservation or purchase tickets with a booking code and one ticket to two destinations at once. "Passengers can save the cost of visa application, because passengers can travel without a transit visa," she said.

"We will also process the baggage to the final destination. This means that passengers do not have to make the process of moving luggage from destination to destination early next," she explained.

According to Audrey, since Air Asia opened the Bandung-Kuala Lumpur route, the airline passenger growth shows quite positive. Air Asia recorded an average load factor above 80%. "If from Bandung to China, load factor its just of 5%," she said. This service is Bandung predominantly of going to China, rather than vice versa. "If from other cities could reach 10%," said Audrey.

Air Asia Indonesia will continue to boost the promotion of these services so tourists visiting Bandung-China China and vice versa is growing. She hoped that in the future Air Asia can serve other direct routes which connecting Indonesia with a number of countries in the world. Air Asia currently serves 150 routes, with 76 destinations that connect 22 countries.

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Susi Air revenue target of IDR 240 billion

PT ASI Pudjiastuti Aviation, owner of Susi Air airline set a revenue target of IDR 240 billion, up 20% compared to last year's revenue of IDR 200 billion. This target is followed by the company's plan to issue bonds to meet capital expenditure in 2012 amounted to U.S. $ 100 million.

Susi Pudjiastuti - Susi Air President Director - said, this target is realistic for them. The average passenger of Susi Air in 2011 has more than 40,000 passengers per month, rising on average than the 2010 rate of 30,000 per month.

"We are targeting to carry 50,000 passengers per month this year, and this is what will boost our revenue," Susi said.

Unfortunately, Susi did not want to talk about the company's performance in the first three months of this year. Susi just said, this target is reasonable to achieve because Susi Air has won the pioneer route to the budget ceiling of USD 25 billion in the Budget Authorization Holder (KPA) Kalimantan as many as 15 routes.

This year, Susi Air is also preparing to issue bonds related to capital spending requirements that are used to buy 16 new aircraft. "If we do not get loans from banks, could have issued bonds to cover capital expenditures. Because the internal cash only able to cover capital spending by 20 percent, "Susi said.

MOL faces biggest loss in history, says CEO in gloomy birthday speech

MITSUI OSK Lines is facing its largest loss in history of JPY27 billion (US$0.32 billion) despite stable profits and cost-cutting the company has fallen into the red, said its president Koichi Muto at a 128th anniversary speech.

Factors such as the strong yen, high fuel prices, the impact of the earthquake and tsunami last year, and the economic slowdown in developed countries have weighed heavily on our performance, Mr Muto said, adding that the situation was also worsened by weak rates brought about by a glut of ships in almost every vessel category.

The delivery of new vessels will continue to negatively impact its operating results this year and unless cargo demand increases. It forecasts challenging market conditions into 2012 but a more favourable supply-demand balance for global fleet into 2013.

Despite a cost-cutting operation of JPY20 billion through the introduction of slow steaming the carrier is seeking further cost cuts if those that crept up without a loss to safe and high-quality services.

MOL is currently executing Phase 4 of its action plans for the reinforcement of operational safety, with the aim of becoming the world leader in safe operations to improve key performance indicators such as the accident rate.

MOL is investigating the cause of the collision of a MOL containership on the open seas southeast of Hong Kong on February 22 and stress the safety of seafarers, cargo and ships.

In order to manage the volatile market it has created a mid-term management plan in "GEAR UP! MOL" to create an earnings model unlike its traditional model-one that is resilient to drops in rates. MOL also seeking to expand alliances in containerships and through pooling arrangements for tankers. It will focus on the LNG carrier business and energy-related marine business generated from it such as Floating Storage and Regasification Units (FSRUs).

source: shippingazette.com / picture: google.com

GARUDA INDONESIA - The Best International Airline - in the WORLD

Garuda Indonesia was awarded "The Best International Airline" by Roy Morgan, Australia an independent international research institute which has been operating for 70 years.

Determination of Garuda Indonesia as The Best International Airline was based on research conducted by Roy Morgan from February 2011 to January 2012 against the 3943 respondents, who were asked to give an assessment of the products and services the world's airlines, "said Deputy Managing Director Corporate Communications of Garuda Indonesia, Pujobroto.

Of the 3943 respondents who are users of international air services, there are as many as 91 percent of them saying very satisfied or very satisfied on Garuda Indonesia services.

Pujobroto said, assessment given by the respondents against Garuda Indonesia exceeds the rating of the airline companies of the world. A number of airlines that are sequentially under Garuda Indonesia are Singapore Airlines, Air New Zealand, Emirates, and Cathay Pacific.

Before this, he said, in line with the transformation program and "Quantum Leap" which is currently still being implemented, Garuda Indonesia succeeded in reaching the various achievements such as "The World's Most Improved Airline" by the airline agency, Skytrax, based in London. In addition, he continued, Garuda Indonesia has also been selected as "Turn Around Airline of the Year" by the Centre for Asia Pacific Airlines (CAPA).

Earlier, President Director of Garuda Indonesia, Satar presents, Garuda Indonesia airline fleet will total 154 aircraft by 2015 as part of a program called "Quantum Leap" launched by the state-owned companies.

"Through the program 'Quantum Leap', up to 2015 Garuda Indonesia plans to increase the current fleet of as many as 89 aircraft to 154 aircraft," said Director of Garuda Indonesia, Satar, when receiving the arrival of two new aircraft Boeing 737-800NG and Airbus A330-200 at Soekarno-Hatta Jakarta.

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China COSCO posts 255pc loss of US$1.66 billion, boxes lose $1 billion

HONG KONG listed China Cosco Holdings has posted a loss of CNY10.5 billion (US$1.66 billion) in 2011, down 255 per cent year on year from a profit of CNY3.78 billion in 2010. Revenues were also down 12.3 per cent to CNY84.64 billion in 2011.

Looking ahead, the company said: "On one hand, weaker consumption in developed countries will slow growth of global trading volumes; on the other hand, overcapacity will remain unfavourable to the shipping market because of a large amount of new build vessels to be delivered."

The company's shipping line, Cosco Container Lines, and related businesses experienced a loss of CNY6.35 billion with a total throughput of 6.91 million TEU, up 11.2 per cent year on year. But the division's revenues were down 10.7 per cent to CNY41.4 billion.

But revenues for its domestic logistics division, comprising some forwarding and ship agency business, grew about 15 per cent to CNY17.74 billion from CNY15.21 billion in 2010, attributing to a profit of CNY626.5 million.

Its terminal operations, including all major Chinese ports, plus facilities in Greece, Suez Canal, Singapore and Antwerp, posted a profit of CNY492.7 million due to a growth in both throughput and revenues.

Regarding fleet development in 2011, six containerships with a total capacity of 69,458 TEU delivered, bringing the fleet to 157 operated containerships with a total capacity of 667,970 TEU and representing an increase of 8.8 per cent year on year. Thirty-two vessels were on the company order book, totaling 244,168 TEU at the end of 2011.

The company has 28 new vessels scheduled for delivery between 2012 and 2014. The company also expects to receive ten new 4,250-TEU ships and four chartered-in 13,000-TEU vessels this year. Cosco expects to carry 7.3 million TEU this year.

Said the company statement: "Over 80 per cent of the contracts of Pacific routes included terms for the separation of bunker surcharges and freight rates, while bunker surcharges and currency exchange surcharges of Europe Mediterranean routes were adjusted monthly."

The company said it "has raised freight rates seven times and introduced surcharges for Australia routes. Extra risk surcharges and war insurance premium were introduced to routes to Persian Gulf and other hazardous areas."

"More shipping capacity will be allocated to emerging markets and feeder routes to build up an extensive global service network and speed up the recovery of freight rates," the company said.

But it forecast the global demand for the container shipping will maintain steady growth. It quoted Clarkson's February report that the volume will increase 7.7 per cent in 2012, but it would be difficult for the growth rate of the container shipping volume on Pacific routes to exceed five per cent despite the recent partial recovery signal of the US economy, and the Europe-Asia routes will continue to be stagnant due to European debt crisis.

"Since the beginning of 2012, the freight rates of Europe-Asia routes and Pacific routes have been improved and the overall freight rates of in the container market are expected to recover to normal level. Yet, due to the intensifying political situation in Iran, bunker costs will further increase and the cargo shipping in this region will be hindered, and the risk of economy of emerging markets being impacted will increase," said the Cosco statement.

source: shippingazette.com / picture: google.com