A new direct shipping route has been launched by Chinese shipping giant COSCO, connecting Batam Port in Indonesia to Yangpu Port in China. This route aims to improve trade and sea connectivity between China and Southeast Asia by reducing transit times and logistics costs.
New Direct Shipping Route
The new route, operated by COSCO, links Batam Port in Indonesia’s Riau Islands province with Yangpu Port in China’s Hainan province. The inaugural voyage took place on a container vessel. According to COSCO’s managing director in Indonesia, Wang Wei, this new service will create a fast channel for trade, benefiting businesses in China, Indonesia, and the wider region by shortening transit times and lowering costs.
Batam Port’s Development and Significance
Located strategically at the intersection of Indonesia, Singapore, and Malaysia, Batam is a key industrial development zone. The port has seen significant growth in recent years, with container throughput reaching around 670,000 TEUs in 2024. The port has also been upgraded with new equipment like ship-to-shore cranes and gantry cranes to meet international standards. The new direct route is expected to further boost local industries by offering more efficient and cost-effective logistics.
Economic Impact and Broader Connectivity
The new route is expected to benefit companies like Ecogreen Oleochemicals, a global producer of natural fatty alcohols, by lowering costs and improving efficiency for exports to China. The service will operate on a fixed schedule, also including a stop in Kota Kinabalu, Malaysia. From Yangpu, the route will connect to mainline services for North and South America, creating a link from Indonesia to the Americas. This initiative is seen as a new stage of cooperation between China and Indonesia, strengthening overall ASEAN-China connectivity.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: Xinhua
