Maersk Changes to Integrated Container Logistics: How Does It Run the Service in Indonesia

Since announcing a new strategy in 2016 from container shipping to an integrated container logistics company, Maersk has been continuing to expand its inland services around the world, including in Indonesia.

In a discussion with Indonesia Shipping Gazette, Erry Hardianto, Area Managing Director at A.P. Moller – Maersk in Indonesia, explained the group vision in the industry and revealed some expansion programs in this country.

He said, some milestones that have changed the corporate business focus and strategy include: merger of Maersk and Damco and the transformation of Maersk from a shipping line to an integrated container logistics company.

“Since we declare from a shipping line to an integrated container logistics company, we totally changed our service focus, from port to port service to end to end service. And since we join operation with Damco, we transformed to a total logistic company and a total supply chain provider,” Erry said.

In addition to the business transformation, another factor that triggers Maersk business focus is relating to the increasing trend of e-commerce. “Those factors have changed our business focus, strategies, and investment we do,” he said.

“Since we declare from shipping line to integrated container logistics company, we totally changed our service focus, from port to port service to end to end service,” Erry disclosed in the discussion.

In line with its business transformation, now Maersk takes more focus on handling any kind of services in total logistics and supply chain including warehousing, supply chain management, inland haulage, customs brokerage, e-commerce, and 4PL, etc.

Last year (2019), according to Erry, was the time in which the company started to massively run those services within the country, while this year, some investment will be massively taken to increase its services to customers. “We can handle any aspects in total supply chain in line with our customers need,” Erry said.

“In 2019, we continued our transformation and we realized our vision as global integrator in container logistics. We are now focusing on total supply chain, end to end. Our products are not only port to port anymore,” Erry said.

“We even handle from order handling. For example a customer require for e-commerce from any kind of platform. In the process of e-commerce, some are delivered directly, but some others need for consolidation.”

“With our warehousing service, we can handle consolidation activities from e-commerce. We can ship and pack as needed by the customers,” Erry said, adding that Maersk also handle export consolidation.

Another services that has become the focus of and has significantly provided high contribution to Maersk is 4PL service. Even, through this service, Maersk has become partner with some customers in which their core business is not logistics. “Within 4PL service, we are acting as logistic part of a customer, from order handling, booking, bidding, until payment transaction,” he said.

“Honestly, our 4PL business has provided high contribution to the total of our logistics activities in Indonesia,” he said.

Aggressive Investment in Warehousing

In responding the increase activities of inland services and total logistics and supply chain, Maersk will optimize its warehousing services and facilities. Its existing warehouse facilities will be extended, while on the same time Maersk will build another facility at the other location.

“Surely, in view of our increasing demand of consolidation including the ones from e-commerce market, we are aggressive to do investment, especially in warehousing,” Erry said.

Maersk, according to Erry will expand its existing warehouse in Cakung, from the current 16,000 square meter warehouse. Maersk will expand the warehouse with additional area of 3,500 square meter, creating a total into 19,500 square meter after the construction.

“We have approved the expansion and the construction will start soon. Hopefully, by the end of February, the construction work will start,” he said.

In addition to the existing warehouse expansion, Maersk is also planning to build a new logistic centre in Kerawang. It will build a warehouse of more than 16,000 square meter rightly beside the gate-in of Cikarang dry port.

“We will soon start this project. This facility will focus on warehousing service for our potential customers around Kerawang and West Java in general,” he said.

Though inland service has become the main focus following its vision to be an integrated container logistics, but Erry admitted that shipping will not be left behind. “They will run in parallel,” Erry said, but admitted that since shipping market is moderate, no need for aggressive investment at this moment.

But, in Indonesia, Maersk is eyeing to expand feeder coverage, including to Balikpapan. Maersk has just done feasibility study to open feeder service from Balikpapan. “We have just discussed with Pelindo IV on the potency, but it is still in the feasibility study,” he said.

“We see potency from Balikpapan in line with the government plan to move the Capital City to Central Kalimantan,” said Erry.

Tags:

1 thought on “Maersk Changes to Integrated Container Logistics: How Does It Run the Service in Indonesia”

  1. Hmmm, giant shipping as Maersk Line also run in logistic end to end. It will be much small local logistic only watching their giant stepped

Leave a Reply

Your email address will not be published. Required fields are marked *