Taiwan and South Korea ports link up for expansion of Indonesian box facilities

Taiwan International Ports Corp (TIPC) and South Korea’s Busan Port Authority (BPA) are to jointly invest in container handling infrastructure in Indonesia to tap into its emerging market and younger workforce.

The two port authorities, through their Indonesian subsidiaries, PT Formosa Sejati Logistics (TIPC) and PT Probbolingo Logistic Center (BPA) signed an agreement last week to develop container terminals, container yards and warehouses.

The agreement also states that Taiwanese and South Korean enterprises will receive improved logistics services in Indonesia.

The booming e-commerce market in South-east Asia has propped up freight rates between South Korea, Indonesia, Malaysia and Singapore at about $1,100/teu, a nine-fold increase from pre-Covid-19 days.