Yang Ming Forms Subsidiary in Indonesia
- Business & Finance
Taiwanese shipping company Yang Ming Marine Transport Corp. has decided to establish a new subsidiary in Indonesia.
Named PT Yang Ming Shipping Indonesia, the new arm will be formed with Yang Ming’s partners in Jakarta on May 16, 2019.
PT Yang Ming Shipping Indonesia will have branch offices at Surabaya, Panjang, and Palembang. The company has nominated Benson Chou as President Director for the first term.
Prompted by the rapid economic growth in Southeast Asia, global carriers begin to strengthen their regional services to meet the growing market demand. Among ASEAN countries, Indonesia has the largest economy, Yang Ming explained.
Given its strategic location and potential volume growth, Yang Ming has upgraded its Indonesian service network by deploying larger vessels and increasing service frequencies.
With the establishment of PT Yang Ming Shipping Indonesia, Yang Ming said it would have “a more comprehensive and intensive shipping network” by integrating business in surrounding areas and reinforcing the local operations for import, export and transship cargoes in Indonesia.
The shipping company has a total of six services in the country, three self-owned services CTI, TSE and SE5, and three joint services SS1, SSX, and TPI via exchange slots with partners. Yang Ming’s services cover four major ports in Indonesia – Jakarta, Surabaya, Semarang and Belawan.
The announcement on the new subsidiary comes a day after Yang Ming published a financial update for the first quarter of 2019 which shows that the company suffered a net loss of TWD 0.68 billion (USD 22.06 million), compared to a loss of TWD 1.95 billion posted in Q1 2018.
The consolidated revenues totaled TWD 35.08 billion (USD 1.14 billion) in Q1 2019, up 13.02% compared with TWD 31.03 billion (USD 1.07 billion) seen in the same quarter a year earlier.
In addition, volumes in the first quarter of this year also increased by 5% year over year, amounting to 1.29 million TEUs.