The new service of Sealand – Intra Asia 5 (IA5) – will help shippers from South Sulawesi and East Kalimantan to directly export commodities to some key markets in Asia as the service will provide direct calls from Makassar Port and Kariangau (Balikpapan).
Routing Tanjung Pelepas – Makassar – Balikpapan – Tawau (Malaysia) – Davao (Philippine) – Cagayan de Oro (Philippine) – Shanghai (China) – Ningbo (China) – Singapore – Yangon (Myanmar) – Than Hlyin MITT – Tanjung Pelepas (Malaysia), the IA5 will help to directly export commodities to the countries of Malaysia, Philippine, China, Myanmar, and some other countries in Asia. In addition, importers from Balikpapan and Makassar can also directly import goods from those countries.
For Sealand, this is the first and only direct service from and to Balikpapan, and the second international service to and from Makassar.
Commending this new service, Joshua Ng, Country Manager for Sealand Indonesia, explained the reason why this Maersk Group Company decided to open this service. He said Balikpapan and Makassar are strategically located and serve as connecting hubs from the middle part of Indonesia to Indonesia’s Eastern Regions. With IA5, customers in these surrounding areas now also have the opportunity and ease to expand their business reach across Asia.
“Sealand Asia believes that our new IA5 service can play a significant role in supporting the growth of international trade for eastern Indonesia, with direct connections to Philippines & China and transhipment connections to the rest of the world. We are encouraged by the strong focus on developing eastern Indonesia and are excited to grow together in Makassar and Balikpapan,” Joshua Ng, Country Manager for Sealand Indonesia, said after the first call of this service to Makassar Port on Friday, March 22.
The IA5 first service to Makassar was served by Sealand’s containership Maersk Wolgast. From Makassar, Maersk Wolgast will do its first call at Kariangau Container Terminal (Balikpapan) two days after, on March 22.
Reduce Cost up to 30%
There will be some benefits to logistics activities, exporters and importers, the business players, and the community of the regions that the IA5 will provide, according to Sealand. In addition to direct access to export/import services to and from key ports in China, South Korea and Philippines, this service will also reduce logistics cost of shipping to/from Balikpapan and Makassar.
“It will cut logistics (shipping) cost up to 30% by shipping direct internationally instead of via domestic feeder,” said Joshua.
Some other benefits are including a faster shipping transit times by 2-3 days, a simpler, more seamless customs processes through direct B/L to Balikpapan and Makassar, an improved schedule reliability through a fixed, weekly sailing, and easy connection to surrounding areas including Samarinda, Palu and Ternate
Meanwhile, Farid Padang, President Director of state-owned port operator PT Pelabuhan Indonesia Persero (Pelindo) IV, even expect higher. He expected that this that the direct call will help to cut total logistics cost up to 50% and shorten logistics cycle time by 9-15 days.
“Cargoes from Balikpapan (East Kalimantan) and from Makassar, of course, can be directly shipped to destination port without any transhipment at Tanjung Priok (Jakarta) nor Tanjung Perak (Surabaya),” said Farid Padang.
“We can save cost by more than 50% since there will be no double handling. In addition, it can shorten logistics cycle time from 9 t0 25 days,” he further said.
In addition, cheaper logistics cost and faster time of delivery, this service will also give some other benefits of more secured cargo and additional income to local government (APBD). “No more cargo damage due to process of double handling, while local government will have a potential additional income,” he said.
Farid appreciated the Sealand business strategy to open direct calls both to Makassar and Balipapan since these two regions have some potential commodities for export. “South Sulawesi potential export commodities are dominated by agricultural, agroindustry, and fishery products,” he said.
Balikpapan, according to Farid, is also a very potential since it is supported by East Kalimantan hinterland. “Kariangau Container Terminal (Balikpapan) is the main gateway of export from East Kalimantan. Moreover, there are some big companies producing export commodities,” he said, naming some of them: PT Balikpapan Forest Industri, PT Herman Group, PT Sumalindo Lestari Jaya, PT Linda Hanta Wijaya, PT Cipta Krida Bahari, PT Korindo and PT Tirta Mahakam.
“Those big eight companies contribute more than 783 boxes of containerized cargoes of export import per month,” said Farid.