New Shipping Route Adds Fresh Momentum To China-indonesia Trade Ties

BATAM (Indonesia), Aug 23 (Bernama-Xinhua) -- Amid the sound of ship whistles, a container vessel slowly departed from Batam Port in Indonesia's Riau Islands province.

The voyage marked the inaugural sailing of a new direct shipping route operated by China's shipping giant COSCO from Batam to Yangpu Port in south China's island province of Hainan, enhancing sea connectivity between China and Southeast Asia.

"It is a great honour to be in Batam today, a city full of vitality and opportunities, to witness the launch of this new direct service," said Wang Wei, managing director of COSCO Shipping Lines Indonesia, at the inaugural ceremony on Thursday, reported Xinhua.

He noted that the new route linking Batam and Yangpu is a vital step in strengthening regional connectivity. "Direct sailings will shorten transit time, reduce logistics costs, and bring tangible convenience for trade between China, Indonesia, and the wider region," he said.

Located at the crossroads of Indonesia, Singapore, and Malaysia, Batam sits at the heart of the "growth triangle" of trilateral cooperation. As one of Indonesia's earliest industrial development zones, Batam, along with two neighbouring islands, formed a free trade zone in 2009, becoming an important window for the country's opening up.

In recent years, Batam has experienced rapid growth in industries such as electronics, shipbuilding, photovoltaics, and oil and gas equipment manufacturing, attracting increasing foreign investment. Container throughput at Batam Port reached around 670,000 TEUs in 2024.

"In the past, Batam Port relied mainly on basic equipment such as truck-mounted cranes. Now it has upgraded to an international-standard container terminal with ship-to-shore cranes, gantry cranes, and straddle carriers," said Djoko Prasetyo, president director of Persero Batam, which manages the port.

"In addition, direct services save both cost and time, while further boosting local industries," he added.

The launch also brings fresh opportunities for Ecogreen Oleochemicals in Batam, a leading global producer of natural fatty alcohols, whose products are exported worldwide.

"This direct route significantly lowers costs and improves efficiency. China is one of our key markets, and the new service has strengthened our competitiveness there," said Herny Lim, the company's distribution centre manager.

According to Wang, the route will operate on a fixed schedule linking Batam, Yangpu, and Kota Kinabalu in Malaysia. From Yangpu, it will connect with mainline services bound for North and South America, creating a fast channel from Indonesia to the Americas.

"This new service not only builds a bridge for China-Indonesia trade but also strengthens ASEAN-China connectivity. It is truly a win-win opportunity," Wang said.

Economic cooperation between China and Indonesia has continued to deepen in recent years. China is Indonesia's largest trading partner and one of its main sources of foreign investment. Bilateral collaboration has been expanding in sectors including new energy, manufacturing, and the digital economy.

At the inaugural ceremony, local government officials, port partners, and representatives from Chinese and Indonesian companies gathered to witness the opening. Participants agreed that the launch represents more than just a new logistics channel; it symbolises a new stage of cooperation between the two nations.  

-- BERNAMA-XINHUA