DHL Global Forwarding, Pelindo 1 partner to improve logistics in Kuala Tanjung

DHL Global Forwarding and Pelindo 1 have entered into a partnership where the international freight specialist will be the sole logistics provider to accelerate the development of Kuala Tanjung Port and Industrial Estate (Kuala Tanjung PIE). Under the agreement, it will offer its global network and expertise in end-to-end logistics including ocean freight and value added services such as warehouse management, customs brokerage, domestic distribution and bonded logistics center (Pusat Logistik Berikat, or PLB) solutions.

“Located in the middle of Malacca Strait, which is one of the busiest commercial shipping routes in the world, and supported by hinterlands which are rich in agricultural, plantation and mining natural resources along the island of Sumatera, Kuala Tanjung PIE is strategically positioned as an important node in the global logistics and supply chain network,” said Kelvin Leung, CEO of DHL Global Forwarding in Asia Pacific. “This is a critical project for the country and for DHL as we seek to cement our leading position in the freight forwarding industry in the region.”

The two parties marked the collaboration with the signing of the Memorandum of Understanding (MoU) on 1 March 2021 in Jakarta, with Dani Rusli Utama, president director and Prasetyo, director of transformation and business development representing Pelindo 1 and Vincent Yong, president director representing DHL Global Forwarding Indonesia.

“We need to work together to build an ecosystem and prepare Kuala Tanjung Port and Industrial Estate (Kuala Tanjung PIE) as Indonesia's main gateway to the global logistics network. Pelindo 1's collaboration with DHL will provide added value for both parties as well as cheaper, faster and more transparent services,” said Dani.

“It is an honour for us to collaborate with Pelindo 1 and contribute toward the government's grand plan to accelerate the development of Kuala Tanjung PIE. Turning it into Indonesia's Logistics Supply Chain Hub will further increase the competitiveness of the economy and enhance the ease of doing business in the country,” said Yong. “We are excited about the growth potential of the country and remain committed to help improve Indonesia's supply chain efficiencies.”

Kuala Tanjung PIE consists of two integrated parts, namely the Port Area and the Industrial Estate. The development of the Port Area is marked by the operation of the Kuala Tanjung Multipurpose Terminal (KTMT) since 2019. As an international hub, this port is designed to accommodate large ships weighing 50,000 DWT (dead weight tonnage) as well as various types of cargo, from containers, liquid bulk to general cargo.

As for the industrial estate, it will be developed in an area of 3,400 hectares, with the potential for various industrial segments, including aluminum, palm oil, iron, steel, rubber, petrochemical, food products, and other industrial segments based on customer needs.

This area will also be strengthened by the availability of various integrated transportation networks in the form of Trans-Sumatera toll roads and trains. Kuala Tanjung PIE is also directly connected to the Sei Mangkei Special Economic Zone (SEZ), which is the main center for palm oil-based industries in northern Sumatera.

“As a future port and industrial complex, Kuala Tanjung PIE will continue to grow, with a vision to become Indonesia's global logistics and supply chain. So far, several companies and investors are interested in investing in the area. The more companies and investors who invest, of course, will support the acceleration of the revival of the Indonesian economy,” said Dani.