Our outlook for the Indonesian economy remains unchanged since our last quarterly report. BMI continues to forecast GDP growth of 6.1% in 2013, rising to 6.4% in 2014. The big driver of this growth is domestic consumer spending, which represents around 55% of GDP. Coupled with good fundamentals and gradual improvements in the operating environment as a result of government reforms, this has giv…
In 2009 BMI believes that throughput trends at Indonesia's ports will follow the pattern of the country's trade sector. We predict that both imports and exports will fall by 9.5 percent in 2009. A recovery is set to begin in 2010, with total trade forecast to increase by 9%. An average yearly growth of 10.2% between 2011 and 2013 is predicted.
We are expecting activity at Indonesia's main ports to be positive and broadly comparable to last year, with growth of cargo handled ranging roughly between 3% and 8%. Of particular interest to the bulk shipping sector is the fate of the government's existing ban on the export of unprocessed mineral ores. The Constitutional Court upheld the ban in December, but there have been some signs that t…
We are expecting activity at Indonesia's main ports to be positive and broadly comparable to last year, with growth of cargo handled ranging roughly between 3% and 8%. Of particular interest to the bulk shipping sector is the fate of the government's existing ban on the export of unprocessed mineral ores. The Constitutional Court upheld the ban in December, but there have been some signs that t…
Since our last quarterly shipping report, we have become more optimistic about Indonesia's macroeconomic outlook in 2013. With the US, Europe, and China looking at economic rebounds of differing intensities, the external environment has become more favourable. After a tough year in 2012 the global mining industry is looking more upbeat, with key metal commodity prices likely to improve. While w…
We have trimmed back our growth forecast for the Indonesian economy this year, as global and Asian regional growth rates come down, reducing demand for the country's exports. We still believe that the country has solid domestic fundamentals which, to some extent, protect it from the gloomier outside climate. These include strong consumer spending and growing investment in infrastructure. Rising…
Indonesia is growing strongly in 2012, despite the recessionary trends in the world economy. BMI believes expansion is driven by the healthy state of the country's large internal market, its solid banking system, and various other factors such as its diversified exports (commodities and manufactures). The economy remained dynamic in 2011, and in 2012 we expect it to continue to push ahead. This…
The shipping industry entered 2009 in a state of crisis. All shipping sectors had been hit hard, with the dry bulk sector struggling to recover from a plunge in November 2008 that took the Baltic Dry Index to a nine-year low. Rumours persisted that containers were being shipped for a little as US$200 and that the only thing keeping the liquid bulk sector afloat was that tankers were being used …
The shipping industry entered 2009 in a state of crisis. All shipping sectors had been hit hard, with the dry bulk sector struggling to recover from a plunge in November 2008 that took the Baltic Dry Index to a nine-year low. Rumours persisted that containers were being shipped for a little as US$200 and that the only thing keeping the liquid bulk sector afloat was that tankers were being used …
At the moment, Indonesia is one of the few economies showing capacity to buck the trend towards a global economic slowdown. The economy remained dynamic in 2011, and in 2012 we expect it to continue to push ahead. This is good news for the ports and shipping industry. While net exports may falter a little as global demand cools, domestic consumption and investment look resilient. BMI now foreca…
Investors in Indonesia face a variety of challenges that hinder the business environment in the country. Chief among these risks are the restrictions on foreign direct investment (FDI), excessive red tape associated with trading and setting up a business, a poorly skilled labour market, a disjointed and highly variable logistics network and the threats to foreign workers and businesses from cri…
Indonesia's construction and infrastructure sector will register steady growth over the next decade, driven by the residential and non-residential segment. Land acquisition and financing will remain the major impediments to the implementation of PPP projects.
We are expecting s lig htly fas ter g rowth at Tanjung Priok in 20 15. In recent years the facility has been benefiting from rapid g rowth on the back of the country's s trong macroeconomic picture. While this g rowth has been pos itive for the port in terms of driving up throug hput, demand has outpaced development and Tanjung Priok is already operating at above its ins talled capacity level. …
Indones ia is the world's larg es t archipelag o, with a s urface area of 1.9 2mn km and a population of 234 .8mn (20 0 3). Es s entially a collection of over 17,0 0 0 is lands , of which 6 ,0 0 0 are inhabited, it s hares land borders with Eas t Timor, Malays ia and Papua New Guinea. The country is located in a s trateg ically important area, along major s ea lanes linking the Indian and Pacif…
As 20 15 comes to an end, and 20 16 comes into focus , there remains s ig nificant unfinis hed bus ines s in the g lobal economy. While 20 16 will s ee hig her real GDP g rowth (3.0%) than the previous two years (2.7-2.8%), reflecting more expans ive activity in s everal key countries and a revers al of contraction in others , this will s till 'feel' s ubdued, with g lobal inves tment and trade…
Maers k Line is the main container s hipping unit of hig hly divers ified s hipping and energ y cong lomerate AP Moller-Maers k Group. The g roup's other box s hipping s ubs idiaries and brands are MCC Trans port, which operates its intra-As ia route network, Safmarine, which trans ports boxes to and from Africa and the Middle Eas t, Mercos ul (Brazil), intra-Europe carrier Seag o Line and intr…
Excel Maritime Carriers is a Greek owner and operator of dry bulk carriers and a provider of s eaborne trans portation s ervices for dry bulk carg o. The company is a lis ted corporation and its s hares trade on the New York Stock Exchang e (NYSE). The company's his tory dates back to February 1989 , when it was lis ted on the AMEX and NASDAQ under the name B+H Maritime Carriers . In October 19…
Excel Maritime Carriers is a Greek owner and operator of dry bulk carriers and a provider of s eaborne trans portation s ervices for dry bulk carg o. The company is a lis ted corporation and its s hares trade on the New York Stock Exchang e (NYSE).
With dry bulk rates remaining depres s ed and concerns g rowing about a pos s ible fall-off in Chines e demand for imports of coal and iron ore, BMI's view on the dry bulk s ector remains bearis h. The s ector remains hig hly dependent on Chines e demand, as demons trated by the fact that the Baltic Dry Index reacheda 25-year low in February when China s topped importing dry bulk g oods during …
Investors in Indonesia face a variety of challenges that hinder the business environment in the country. Chief among these risks are the restrictions on foreign direct investment (FDI), excessive red tape associated with trading and setting up a business, a poorly skilled labour market, a disjointed and highly variable logistics network and the threats to foreign workers and businesses from cri…
Both of Indonesia's main ports are set to experience positive growth in 2016. Consumer demand and economic growth are set to bolster the country's shipping services, although the ongoing slowdown in China's economy could hold Indonesia back from maximising its potential over the next couple of years.
Both of Indonesia's main ports are set to experience positive growth in 2016. Consumer demand and economic growth are set to bolster the country's shipping services, although the ongoing slowdown in China's economy could hold Indonesia back from maximising its potential over the next couple of years.
Both of Indonesia's main ports are set to experience positive growth in 2016. Consumer demand and economic growth are set to bolster the country's shipping services, although the ongoing slowdown in China's economy could hold Indonesia back from maximising its potential over the next couple of years.
Our freight transport forecast for 2015 shows cargo volume growth will continue at a similar pace to 2014. Both GDP and foreign trade expansion will support the freight sector. In the medium to longer term we continue to think that the key to sustainable growth is investment in port infrastructure, including road and rail links in the hinterland areas. We are encouraged to see that the new gove…
Our shipping and ports forecast for 2015 shows growth rates picking up pace slightly at the port of Tanjung Priok, while they will decelerate a little at the smaller facility at Palembang. This reflects the slightly mixed freight demand picture as the Indonesian economy is set to slow marginally, while foreign trade picks up pace compared to 2014. Over the medium- to long-term, we continue to b…
Indonesia's construction and infrastructure sector will register steady growth over the next decade, driven by the residential and non-residential segment. Land acquisition and financing will remain the major impediments to the implementation of PPP projects.
In 2016 the air freight mode will see the most significant growth in Indonesia, as trade in Asia is set to rebalance after stalling in 2015 and key sectors such as the pharmaceutical market will see a boost in growth. In our medium-term forecast to 2019, BMI believes the rail and air freight modes will see higher growth than road freight transport, as a result of state and external investment i…
In 2016 the air freight mode will see the most significant growth in Indonesia, as trade in Asia is set to rebalance after stalling in 2015 and key sectors such as the pharmaceutical market will see a boost in growth. In our medium-term forecast to 2019, BMI believes the rail and air freight modes will see higher growth than road freight transport, as a result of state and external investment i…
After a slowdown in Asian trade in 2015, Indonesia's trade sector is set to return to growth in 2016 and will strengthen over the medium term. All major commodities exports and imports are expected to return to positive growth and with it, Indonesia's freight transport modes will benefit. Rail and air freight will, in particular, see marked growth as a result of state and external investment in…
After a slowdown in Asian trade in 2015, Indonesia's trade sector is set to return to growth in 2016 and will strengthen over the medium term. All major commodities exports and imports are expected to return to positive growth and with it, Indonesia's freight transport modes will benefit. Rail and air freight will, in particular, see marked growth as a result of state and external investment in…
Investors in Indonesia face a variety of challenges that hinder the business environment in the country. Chief among these risks are the restrictions on foreign direct investment (FDI), excessive red tape associated with trading and setting up a business, a poorly skilled labour market, a disjointed and highly variable logistics network and the threats to foreign workers and businesses from cri…
Rail and air freight growth will be higher than road freight growth in 2015 as state investment in these sectors is ramped up and poor road infrastructure continues to hamper competitiveness on the roads. Economic integration with the ASEAN network will increase both import and export levels, which will impact favourably on the freight industry in the medium term.
In 2015, we anticipate healthy growth for both of Indonesia's two main ports as the contractions of recent years become a thing of the past. Slightly neutering growth is the fact that key trade partner China is set to experience a continuing slowdown in growth, but consumer demand is set to grow at a healthy level over our forecast period and beyond.
In 2015, we anticipate healthy growth for both of Indonesia's two main ports as the contractions of recent years become a thing of the past. Slightly neutering growth is the fact that key trade partner China is set to experience a continuing slowdown in growth, but consumer demand is set to grow at a healthy level over our forecast period and beyond.
Tanker operator Frontline, now based in Bermuda, started life as Frontline AB in 1985, and was listed on the Stockholm Stock Exchange from 1989 to 1997. In 1996 Norwegian shipping magnate John Fredriksen, through his company Hemen Holdings, acquired a controlling stake in Frontline. The company's operations were relocated to Bermuda in 1997, and it was listed on the Oslo Stock Exchange. Since b…
Indonesian chemicals output surged 9.6% y-o-y in H117, while rubber and plastic production grew by a modest 3.2% in the context of slower than expected economic growth and capacity constraints in some sectors. Nevertheless, the performance over recent quarters puts Indonesia in a good position to expand petrochemicals capacity and downstream conversion industries. The country is aiming to becom…
Indones ia's state-owned port operator Pelabuhan Indonesia II (Pelindo II) has propos ed a hike of 10% in container handling charges (CHC) for international boxes , according to local reports . The trans portation minis try is weighing up the proposal while evaluating the port operator's performance to see if it had met minimum standards and is entitled to a tariff hike. The minis try's decisio…
State-run port operator PT Pelabuhan Indonesia II (Pelindo II) has defied a directive of the Indonesian transportation minis try to annul its 20 -yearlong contract extens ion with Hutchison Port Holdings (HPH). According to director general for sea transportation, Bobby Mamahit, Pelindo II failed to comply with government procedures for the renewal of contract for the operation of the Jakarta I…
Indonesia has delayed passing into law changes to the country's offs hore shipping cabotage rules . The new law has been delayed by five months , as concerns s tarted to build in the industry that the need to have all vessels serving Indonesia's offs hore oil and gas projects flag g ed to Indonesia would have a negative effect on the country's oil and g as production levels . The sector's shipp…
Nippon Yusen Kabus hiki Kaisha (NYK Group) was es tablis hed in the 1870 s with the foundation of the Tsukmo Shokai Shipping Company. The carrier beg an Japan's firs t overs eas liner service, establis hing a route from Yokohama and Shanghai. The company, then called Mitsubishi Kisen, merged with Kyodo Unyu Kaisha, another Japanes e company, in 1882. This created NYK, and the merged entity beg …
BMI has revised its short- and medium-term outlook for the port of Tanjung Priok, Indones ia's largest port, following recently releas ed 20 12 container throughput data for the port. The facility has been benefitting from rapid growth on the back of the country's strong macroeconomic picture. While this growth has been pos itive for the port in terms of driving up throughput, demand has outpac…
BMI has revis ed its s hort- and medium-term outlook for the port of Tanjung Priok, Indones ia's largest port, following recently releas ed 2012 container throughput data for the port. The facility has been benefitting from rapid growth on the back of the country's s trong macroeconomic picture. While this growth has been positive for the port in terms of driving up throug hput, demand has outp…
Singapore-based Neptune Orient Lines (NOL) was formed in 1968 , but as sumed its current form in 1997 when it merged with American President Lines (APL). Today, NOL remains the holding company listed on the Sing apore Stock Exchange, with APL its container shipping brand. The Singapore government maintains a 67.4% s take (as of November 2006 ) in the company through its investment company Temas…
Mitsui OSK Lines (MOL) is Japan's s econd largest container shipping line after NYK Lines and is one of the world's largest bulk shipping companies . The company came into being in 1964 , when Mitsui Steams hip Company - a division of Mitsui & Co - merged with OSK Lines , which was founded in 1884 . In 1968 , the company sent its first container ships on the Japan-California route.
Mitsui OSK Lines (MOL)'s container operations are smaller than its dry bulk and tanker operations . In FY13 the container unit's revenue accounted for 4 1.4% of the group's total. In terms of vessels , containers hips account for just 13.3% of the total number of ships operated by MOL.
Mitsui OSK Lines (MOL)'s container operations are smaller than its dry bulk and tanker operations . In FY13 the container unit's revenue accounted for 4 1.4% of the group's total. In terms of vessels , containers hips account for just 13.3% of the total number of s hips operated by MOL.
Mits ui OSK Lines (MOL)'s container operations are smaller than its dry bulk and tanker operations . In FY13 the container unit's revenue accounted for 4 1.4% of the group's total. In terms of vessels , containers hips account for just 13.3% of the total number of s hips operated by MOL.
Mitsui OSK Lines (MOL) is a major international shipping group with a divers ified network of interes ts across virtually all areas of the maritime sector. The company came into being in 1964 when Mits ui Steams hip Company - a division of Mits ui & Co - merged with OSK Lines , which was founded in 1884 . In 1968 , the company sent its firs t container s hips on the Japan-California route.
Mitsui OSK Lines (MOL) is a major international shipping group with a divers ified network of interes ts across virtually all areas of the maritime sector. The company came into being in 1964 when Mits ui Steams hip Company - a division of Mits ui & Co -merged with OSK Lines , which was founded in 1884 . In 1968 , the company sent its firs t container ships on the Japan-California route.