Batam set to become logistics hub with major upgrade

Batam logistics hub
Bifza Head, Muhammad Rudi. Photo by Bifza

Batam, gokepri – Batam Indonesia Free Zone Authority (Bifza) currently working on transforming Batam Island into a logistics hub, which will enhance its position as a key player in the region’s supply chain.

Bifza or Badan Pengusahaan (BP) Batam is a government agency in Indonesia that is responsible for managing and developing Batam Island, which is strategically located near Singapore and Malaysia.

One of the key projects in this transformation plan is the modernization of equipment at Batu Ampar Port, which is a major container terminal on the island. BP Batam plans to install Ship to Shore (STS) Cranes at the North Pier of Batu Ampar Container Terminal, which will replace the old equipment.

The new equipment is expected to arrive in Batam in a few months and will be used to move cargo from ships to the port or vice versa. The crane has a long arm that can reach the ship to load or unload cargo, and it is a critical piece of equipment for efficient port operations.

On Tuesday, March 21, 2023, Bifza Head, Muhammad Rudi, inspected the North Pier of Batu Ampar Container Terminal. Rudi stated that Batam’s preparation as an international logistics hub includes building the Batu Ampar Port and Hang Nadim Airport. “We want to make Batam a logistics hub. One of the ways is to enhance the facilities at Batu Ampar Port to maximize service,” said Rudi.

In addition to the installation of new cranes, BP Batam is also revitalizing the north pier by deepening the channel so that larger ships can dock. This project is part of a larger plan to enhance the competitiveness of Batu Ampar Container Terminal and make Batam Island a more attractive location for logistics companies.

This revitalization project includes not only the installation of new cranes but also the deepening of the channel so that 3,000 TEU capacity ships can dock. The revitalization project was already tendered on November 21, 2022, with a project value of IDR 63.5 billion.

The aim of this dredging and deepening activity is to support the future main activities of the port. The project has already obtained an AMDAL document based on a decree from the Mayor of Batam, and has been assessed in the environmental document.

The Head of Bifza Public Relations and Protocol Bureau, Ariastuty Sirait, stated that the Batu Ampar Port is intended for loading and unloading goods, and that the deepening of the channel is expected to accommodate larger ships with a capacity of 3,000 TEUs. The focus of BP Batam is to continue building Batu Ampar Port’s infrastructure, superstructure, and service capabilities so that the port can become a modern facility capable of handling containerized cargo like other modern ports.

Furthermore, the agency plans to gradually provide loading and unloading equipment, and eventually become the sole provider of these services at Batu Ampar Port. This will be done through a phased investment plan starting from 2023, with an estimated implementation timeline of next year. The goal is to replace the outdated equipment and provide modern and efficient loading and unloading services to improve the competitiveness of Batam Island as a logistics hub in the region.

The transformation of Batam Island into a logistics hub is part of Indonesia’s wider strategy to boost the country’s economy and create more jobs. By improving its logistics infrastructure and attracting more investment, Indonesia aims to become a major player in the global supply chain and boost its competitiveness in the region.

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