Busan Port Authority Signs MOU for Exchange and Cooperation with Indonesia Batam Port

Cooperation on Transshipment Hub Port Development and Smart Technology Operation

Busan Port Authority (BPA, President Kang Junseok) announced on the 20th that it has signed a Memorandum of Understanding (MOU) for exchange and cooperation with PT Persero Batam, a port public enterprise in Batam City, Riau Islands Province, Indonesia.

In the MOU, BPA and PT Persero Batam agreed to cooperate to promote mutual benefits for transshipment, smart, and eco-friendly port development. The areas of cooperation include: ▲ exchanging information and experiences related to transshipment port operation and development ▲ fostering partnerships and personnel exchanges among experts ▲ strengthening joint participation in construction projects.

This MOU signing was promoted as a way to reaffirm the willingness for cooperation between the two governments, as expressed in the MOU signed in July 2022 between the Ministry of Oceans and Fisheries of Korea and the Coordinating Ministry for Maritime Affairs of Indonesia.

Batam Port, aspiring to become a transshipment-centered port, has shown great interest in the growth strategies and know-how of Busan Port, a global hub transshipment port. With the signing of the MOU, cooperation in detailed areas such as smart technologies and green port development for transshipment-focused port development and operation is expected to gain momentum.

Indonesia ranks 11th in the world with an annual maritime cargo volume of about 17 million TEU, but due to a lack of port infrastructure, there are no direct long-haul services connecting to the Americas or Europe.

As a result, 85% of the country's total import and export cargo must be transshipped at foreign ports such as Singapore and Malaysia, which leads to a very high proportion of logistics costs in the national economy.

To address this, the Indonesian government is actively promoting the development of a transshipment-centered port on Batam Island, which is only about 20 km away from Singapore.

PT Persero Batam is currently pursuing a plan to increase the handling capacity of Batu Ampar Terminal, which currently processes about 500,000 TEU containers annually, to about 1.6 million TEU by 2030. To achieve this, they are seeking joint ventures with global terminal operators and shipping companies.

Additionally, in April last year, they purchased and installed used quay cranes from Pohang, Korea, and are planning further acquisitions of terminal operation equipment.

Kang Junseok, President of BPA, said, "We will actively share the port development and operation know-how possessed by Busan Port, the world's second-largest transshipment port, to contribute to the exchange and development of the maritime and port industries of both countries, and will continue to pursue further cooperation."

Kang Junseok, President of Busan Port Authority (fourth from the left), and others are signing an exchange and cooperation MOU with officials from Batam Port, Indonesia.

This content was produced with the assistance of AI translation services.