Air Cargo Business Growing At Rapid | Business First

Air Cargo Business Growing At Rapid

Jakarta – The Company’s research and business consultants Frost & Sullivan estimates that the air cargo business will grow at a high compared with other modes of transportation logistics of this year. ”The expansion of airport facilities and capacity in Indonesia to improve air cargo market,” said Vice President Transportation & Logistics Practice Frost & Sullivan Asia Pacific, Gopal R, on Tuesday, January 17, 2012.

Gopal predict the air cargo business will grow 5.7 percent to 920 thousand tons this year compared with last year. According to him, the four major airports in Indonesia, the Soekarno-Hatta, Juanda, Ngurah Rai, and Polonia, accounted for 47, 2 percent of the volume of cargo last year. Among the four, the proportion of Soekarno-Hatta Airport is the most high. ”Reaching 36 percent of the total volume of air cargo in Indonesia,” he said.

However, if viewed from the side of the volume, rail cargo business to occupy the highest value. This year the estimated volume of railway cargo reach 20.4 million tons. This figure rose 3.6 percent compared to 2011 which reached 19.7 million tons.

According to Gopal, the cargo is transported by rail in Java is largely made up of fuel oil, fertilizers, cement, coal, and container, while the goods are transported in Sumatra including crude palm oil. He estimated the government will revitalize freight train service along with the increasing demand for Indonesian commodities.

Furthermore Gopal advised entrepreneurs to develop a network of logistics centers in the industrial outskirts of Jakarta to improve access to the Port of Tanjung Priok. Traffic congestion in Jakarta resulted in a longer travel time, delay delivery, as well as supply chain inefficiencies.

In addition, the government asked to integrate transportation centers such as seaports, airports, terminals, distribution centers and transportation network. ”All of that for the sake of developing the best logistics infrastructure distribution efficiency in order to happen,” he said.

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