PKT Logistics, one of Malaysia’s main logistics providers, has signed a joint venture agreement with Multi-Terminal Indonesia (MTI) to create an automotive hub at the port of Tanjung Priok on the north coast of Jakarta.
MTI is the logistics arm of PT Pelabuhan Indonesia (Pelindo), a collection of state corporations responsible for port operations in the country. It manages logistics activities, as well as container and multi-purpose terminals for customers at the port.
The hub at Tanjung Priok is forecast to become one of Indonesia's largest automotive facilities and is designed to meet the needs of a growing automotive industry. Car sales in Indonesia totalled 1.21m units last year according to the Indonesian Automotive Industry Association.
There is a growing interest in the Indonesian market among logistics providers.
In January, KLN Singapore, the subsidiary of Asian logistics service provider, Kerry Logistics, signed a joint venture agreement with Indonesia’s PT Puninar, one of Indonesia’s largest logistics companies.
In February this year PKT Logistics awarded a contract to property developer Eversendai Corporation to build 12 warehouses at Batu Kawan, near Penang, in Malaysia, as part of its three-phase ‘One Auto Hub’ project.