Busan Port expand logistics connection between Busan and Indonesia
The Busan Port Authority announced that in order to expand the logistics connection between Busan and Indonesia and promote the competitiveness of Korean companies doing business there.
After Jakarta, East Java is Indonesia's second largest economic region, and is where many Korean companies do business. In addition, the demand for bonded warehouses and other logistics facilities in Probolinggo Port is rising as congestion exists in the nearby Surabaya Port.
Together with the local logistics company PK and the Korea Overseas Infrastructure & Urban Development (KIND) Corporation, BPA plans to set up a joint company in February next year and complete the construction of the warehouse and begin sales activities in earnest from December.
Inland shipping and port unloading will be managed by the joint company participating in BPA and its business scope will be expanded to include comparison warehouses, new port construction and activity, etc. Established in 1991, PK is listed in the top ten in the maritime and logistics industry and was the first Indonesian logistics company to be based in the Port of Probolinggo.
Indonesia, one of Busan Port's top 10 trading partners, has the world's 4th largest population (270 million people) and is rising at a 5 percent annual rate. After the government's declaration of the New Northern Policy in 2017, the government concluded the CEPA with Indonesia for the first time as an ASEAN country on Dec. 18.
Maritime Business World