Indonesia Leans on Singapore for Maritime Sector Investment

Indonesia Leans on Singapore for Maritime Sector Investment. The Indonesian government is angling for greater investment in the country’s maritime sector from Singapore, its biggest source of FDI, as President Joko Widodo prepares to visit the city-state next week.

“There’s a lot of [interest] in the maritime industry from Singapore, especially in Batam, Bintan and Karimun [islands],” Azhar Lubis, the deputy chairman of Indonesia’s Investment Coordinating Board (BKPM), said after a bilateral meeting in Jakarta on Thursday.

He noted that 60 percent to 70 percent of Singapore’s investment in Indonesia went to those islands, about an hour’s boat ride from Singapore, and that the Indonesian government wanted to see more investment in other regions of the country.

“We invited them to invest outside Java, in Makassar and Manado,” he said.

Singapore still best port in the world

In a new review of 15 leading maritime cities, Singapore has retained its No.1 position followed by Hamburg, Oslo, Hong Kong and Shanghai.

Norwegian consulting company Menon canvassed a group of experts for their views based on five criteria: shipping centers, maritime finance and law, ports and logistics services, maritime technology and attractiveness and competitiveness.

Noting its "business friendly policies" and strategic location, the Menon report acknowledges Singapore "has gained a position in the global economy few would have predicted 40 years ago".

Qatar Airways starts A350 service to Changi, Singapore

Qatar Airways became the first airline to operate the world’s newest aircraft to Singapore and the Asia Pacific region on Monday with the inaugural A350 XWB service arriving at Singapore's Changi Airport.

Qatar Airways, as the global launch customer for the A350 XWB, became the first airline to operate the world’s newest aircraft to Singapore and the Asia-Pacific region on Monday, with the inaugural A350 XWB service arriving in Singapore Changi Airport.

AirAsia NEW ROUTES: Singapore and Makassar Makassar-Kinabalu

AirAsia Indonesia will make Makassar as a hub for international routes from eastern Indonesia, with the opening of routes to explore Makassar - Singapore and Makassar - Kota Kinabalu.

Chief Executive Officer of AirAsia Indonesia Dharmadi said that with the opening of a sales office in Makassar is expected to start making capital of South Sulawesi as an international aviation hub, in addition to continue to develop domestic routes.

"We hope that soon we'll be the permission for opening the route to Singapore, Makassar could be a hub for international routes because of the closer here, including the Kinabalu," he said after opening a sales office in Makassar AirAsia Indonesia, Wednesday (20/2).

Dharmadi a former pilot, said after later getting permission Makassar - Singapore and Makassar - Kinabaru, the route can be connected with international routes have been opened by AirAsia Berhad are like Kuala Lumpur - Jeddah.

"So later on if it is open, it can be connected with a network of AirAsia, so from Makassar - Kuala Lumpur - Jeddah. Anniversary of Makassar is not too far either he said.

Nevertheless, the company also remains focused on domestic routes such as to Manado, Surabaya and Bali. The opening of the sales office located at Jalan Boulevard, Ruko Ruby, Panakukkang, Makassar, was inaugurated by national leaders as well as former Vice President Jusuf Kalla.

Sales office is the ninth of the total Indonesia AirAsia sales offices that are scattered in Jakarta, Bandung, Medan, Yogyakarta, Bali and Surabaya. Indonesia AirAsia is currently serving 70 routes, which are connected through six hubs namely Jakarta, Bandung, Bali, Surabaya, Medan and Makassar.

From the Makassar hub, already operates routes Makassar - Kuala Lumpur four times a week so it will be changed to daily, while for domestic routes from Makassar hub currently serves Makassar – Jakarta twice per day, Makassar - Balikpapan once, and at 1 March serving Bali, Manado, and Surabaya.

He said the government of Indonesia and Singapore also recently signed a bilateral agreement about the airline industry so that it can be used by the company and other airlines to explore the route to the land of the lion. "Basically, we have developed a connection from hub to hub, for example, from the hub of international routes to London and Singapore for example. Makassar location support," he said.
 
Dharmadi said that until now the company operates a fleet of some 22 aircraft and Makassar hub of which is allocated two planes. He said the addition of the aircraft when it is supported also by the policy of the company aircraft rental. This year the company will add nine aircraft so that its fleet to 31 aircraft.

AirAsia Indonesia, he said, aims to add 10 aircraft per year in the next few years in line with the company's efforts in developing business expansion. This year the company expects the number of passengers could reach 8.5 million - 9 million compared with last year's 6 million passengers.

In that occasion, former Vice President who is currently the Chairman of the Red Cross Indonesia Jusuf Kalla said there are several ways to measure the development of an area and two of which productivity and facilities.

But he said if the area is already well in terms of productivity and connectivity facilities to be supported by other regions.

"Economic growth in Makassar is higher than the national economic growth of 6.2%, while the Makassar only 9% due to productivity as well, so this Makassar airport facilities in terms of the center position for a flight to the East and the West," Kalla said.

South Sulawesi Provincial Government Assistant Public Welfare Charity Natsir added just feel if AirAsia makes Makassar as an international aviation hub of eastern Indonesia. "In the last five years our economic growth above 8%, 8.46% to be exact, while we also keep inflation at the level of 3.2% is the lowest compared to other regions," he said.

Singapore's APL to quit Westbound Transpacific Stabilisation Agreement

SINGAPORE's APL, the container shipping arm of shipping group Neptune Orient Lines (NOL), is quitting the Westbound Transpacific Stabilisation Agreement (WTSA), the discussion forum covering the westbound trade from the US to Asia, with effect from September 1.

APL is the third carrier to leave the WTSA over the past decade, following in the footsteps of MOL's departure in June 2005 and previously Maersk Line, which was known at the time as Maersk Sealand and left the group in July 2002.

This reduces WTSA members to nine shipping lines: Hapag-Lloyd, Hyundai Merchant Marine (HMM), "K" Line, NYK Line, OOCL, Cosco, Evergreen, Hanjin and Yang Ming.

According to Alphaliner estimates, the remaining WTSA carriers, as of August, control 55 per cent of the total westbound Asia-North America capacity.

It said the 15 member ocean liners of the WTSA's eastbound counterpart, the Transpacific Stabilisation Agreement (TSA), control an estimated 92 per cent of total capacity on the Asia-North America route.

TSA members include: APL, Maersk, China Shipping, CMA CGM, Mediterranean Shipping Company (MSC) and Zim.

The Westbound Transpacific Stabilisation Agreement  (WTSA) was established in 1990 to replace a more rigid rate conference system for the US-Asia market. It offers a discussion forum for its members to develop non-binding guidelines relating to freight rates, surcharges and other fees.

SINGAPORE Airlines quarterly profit declines 53pc to US$108 million

SINGAPORE Airlines (SIA) posted a 53 per cent fourth quarter net profit loss to S$135.2 million (US$108 million) year on year, drawn on revenues of S$3.88 billion which changed little.

Controlled by state investor Temasek Holdings, Singapore Airlines, the world's second largest airline, attributed the decline to the harsh global economic environment, decreasing demand in passenger and cargo markets as well as high fuel prices. Its fuel bill soared 33 per cent in the quarter from a year ago, the company said.

Its profit was lower than the average forecast of S$162.5 million from four analysts polled by Reuters. This is the fourth straight quarter that the airline's profit has underperformed analysts' expectations.

Singapore Airlines said weakness in both passenger and cargo sectors would persist. "Forward bookings continue to show signs of weakness in the final quarter of the financial year, due to uncertainty in the global economy and the protracted Eurozone debt crisis," the airline said in a statement.

"Passenger yields are expected to remain under pressure while cargo yields are expected to continue to decline," it said, adding that slack air cargo market is likely to continue due to soft demand in major developed countries.

To expand, the airline plans to commence its own long-haul budget airline, Scoot, by mid-2012, reported the USA Today, saying that this would help the Singapore Airlines group, including its regional unit, SilkAir, and its short-haul budget affiliate Tiger Airways (with a 33 per cent stake), to run against the odds in 2012.

Late last year, the International Air Transport Association (IATA) reduced its forecast for airline industry profits by a quarter to $3.5 billion for 2012, adding that IATA warned the industry's losses would increase to an US$8.3 billion if Europe's debt crisis deepens and provokes a new financial crisis. Singapore Airlines quarterly profit declines 53pc to US$108 million

source: shippinggazette/picture: google.com

NOL posts quarterly US$91 million LOSS with full-year decline expected

SINGAPORE's Neptune Orient Lines (NOL) has announced a net loss of US$91 million for the third quarter compared to a profit of US$282 million in the same period last year.

The group said its APL Logistics business reported higher revenue and a nine per cent year to date gain in operating profit, but container shipping dragged down overall results.

"The liner shipping industry is faced with slowing trade demand, excess capacity and fuel costs that are significantly higher than a year ago," said CEO Ng Yat Chung. "Our urgent priority is to drive down costs and increase efficiency."

NOL reported third quarter revenue of US$2.2 billion, down nine per cent from a year ago. It announced an operating profit loss for the period of US$72 million. In the first nine months, NOL's net loss stood at US$158 million.

APL, the liner shipping business of NOL, reported increased volume of seven per cent in the third quarter of 2011. Revenue declined 12 per cent and the business announced a Core EBIT loss of US$88 million. Revenue per FEU was 19 per cent lower in the third quarter of 2011 compared to the same period in 2010. Fuel prices increased 45 per cent in the third quarter from the same period a year ago.

"Higher volume was offset by increased fuel cost and lower freight rates," said APL president Kenneth Glenn. "In this environment, we must continue to concentrate on operational efficiency and managing costs down."

APL Logistics, NOL's supply chain management business, reported third quarter revenue of US$333 million, up 10 per cent from a year ago. Third quarter operating profit stood at US$16 million, down 11 per cent from a year ago. In the first nine months, APL Logistics has reported revenue of US$1 billion, up 15 per cent from 2010.

"We achieved our highest average weekly revenue ever during the third quarter and we continue to invest for growth," said APL Logistics president Jim McAdam. "But at the same time, we are actively managing costs as a reflection of uncertain economic conditions."

The group said that global economic conditions have not improved and with continued low freight rates in container shipping and slowing trade demand, it expects to report a loss for the full year in 2011.

picture: google.com / source: shippinggazette

SINGAPORE AIRLINES launches twice-weekly FREIGHTER services to FRANKFURT

Singapore Airlines Cargo will commence twice-weekly Boeing 747-400 freighter services to Frankfurt from November 2, 2011 to complement cargo capacity on its twice-daily passenger flights between Singapore and Frankfurt to meet demand for the city's major exports of machinery and automobile parts.

"These services are in line with our policy of matching capacity with demand. The freighter services to Frankfurt will give our customers more choice of flights to choose from and will play an important role in expanding two-way trade links with key markets in Asia and Europe," said senior vice president Tan Tiow Kor.

The flight SQ7382 will depart on Wednesday from Singapore at 1910 hrs, arrive in Bengaluru at 2100 hrs, depart 2255 hrs, arrive in Sharjah at 0130 hrs, depart 0225 hrs, arrive in Frankfurt 06:15 hrs.

On Thursdays flight SQ7381 will depart Frankfurt at 0850 hrs, arrive at Sharjah at 1750 hrs, depart 1900 hrs for arrival in Singapore at 0610 hrs. On Saturdays flight SQ7384 will depart from Singapore at 2305 hrs, arrive in Chennai at 0045 hrs, depart at 0245 hrs, arrive in Sharjah at 0535, depart 0635 hrs with arrival in Frankfurt at 1025 hrs.

On Sundays flight SQ7383 will depart Frankfurt at 1415 hrs, arrive in Sharjah 2315 hrs, depart 0025 hrs to arrive Singapore 1135 hrs.

source: shippingazette.com / picture: google.com

Singapore's APL named best ocean carrier, also tops in innovative IT

SINGAPORE-based carrier APL, the container shipping arm of Neptune Orient Lines (NOL), has been awarded the "Global Ocean Carrier of the Year" and the "Innovation IT of the Year" by London's Containerisation International, winning over other leading rivals, among them, Maersk, CMA CGM and Hyundai Merchant Marine.

Said APL president Kenneth Glenn: "We're delighted to once more be recognised by industry peers for shipping excellence. This is an affirmation of our focus on providing customers with schedule reliability and service integrity."

The Innovation IT of the Year award was won in recognition of the company's development and implementation of its proprietary SMARTemp service, which uses satellite tracking to continually monitor the temperature and humidity of refrigerated containers carrying sensitive cargo. This makes sea freight a feasible choice for shippers with cargo traditionally shipped by air, said APL.

It was the second time in three weeks that APL was honoured as the world's top carrier. In September, it won the Ship Operator Award at the Lloyd's List global awards.

Other awards conferred to APL this year include Liner Owner/Operator of the Year by Seatrade Asia magazine in June, and best shipping line in both the transpacific and Asia-Europe trades at the Asian Freight and Supply Chain Awards in April.

source: shippingazette.com / picture: google.com