Batam Island Launches Direct Container Shipping Route to China

The renowned Indonesian vacation destination, Batam Island, has recently inaugurated its first direct container shipping route to China. Local government estimates suggest that this new route could save approximately $600 per container in transportation costs.

On March 31, 2024, the SITC Hakata, a container ship with a capacity of 1098 standard containers, arrived at Batam Island's Batu Ambar Container Port. Muhammad Rudi, a local government official, stated that since the installation of a quay crane last year, Batam has achieved direct shipping connectivity with China, eliminating the need for transshipment through Singapore. This development not only facilitates direct shipping between Batam and China but also opens opportunities for direct connections with other countries.

The direct service, a collaboration between Batam's Persero Batam and the Hong Kong-based intra-Asia container shipping company SITC, connects Batam Island with southern Chinese cities like Guangzhou and Shenzhen. Previously, container shipping in many of Indonesia's islands required transshipment through Jakarta, Surabaya, or Singapore.

The SITC Hakata transported 168 containers from Batam to China on its voyage. Arham Torik, a director at Persero Batam, estimates that four to five companies in Batam will initially use this service to export goods to China, signaling a successful launch of the direct shipping service.