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Market Research * Indonesia - Freight Transport Report Q3 2008
The country’s competitiveness and economic growth were being held back by high transport costs, poor infrastructure, and corruption
Indonesia -pr-inside -12 Sept 2008: -- ‘Indonesia’s poor infrastructure is impeding the domestic trucking industry and limiting the ability of small business owners to access profitable markets’, concluded a joint report by the Asia Foundation and Universitas Indonesia, the state-owned university, published in April... The report said the country’s competitiveness and economic growth were being held back by high transport costs, poor infrastructure, and corruption. Trucking companies and had to pay a wide array of illegal fees to government officials, police, and local thugs, according to the report, which was based on an industry survey... It assessed the costs of transport by truck across nine major routes between key cities in Sulawesi, Java, West Nusa Tenggara, and North Sumatra. The results showed it costs more to operate trucks in Indonesia than in other Asian countries including Vietnam, Thailand, Malaysia, and China... A key problem facing the trucking industry is the lack of investment in new roads. Freight carried on other transport modes is set to grow faster than on road: by an average of 6.9% for rail, 7% for shipping, 7.1% for pipeline throughput, and 7.4% for air freight. Indonesia’s freight industry has a poor-to-average BMI freight rating with a composite score of 56.9 out of a potential total of 100. Comparatively speaking, its stronger points include the country’s long-term economic risk, freight growth, and the transport intensity index – a measure of immediately past and future foreign trade growth...
Labels: trucking markets
posted by Unknown @ 2:40 PM
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