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MARCH2012LocalExpertiseIndonesialISSREPORTERwww.iss-shipping.com21GeneralManagerforIndonesiaAmitBhardwajshowshowthecompanyishelpingfirmscapitaliseonIndonesiax19sfast-growingcoaltradebyprovidingmarinetransportationoutsourcingsolutions.COALMININGISAfastgrowingindustryinIndonesiaandasignificantportionofthisactivityfocusesontheislandofKalimantan.In2010coalexportstotalled291milliontonnesupnearlyaquarteronthepreviousyear.Nowthereareplanstoincreaseoverallcoalproductionfromaround320mtonneslastyearto500mtonnesby2020.TugspullinglargebargesladenwithcoalarearegularsightontheMahakamandBaritoriverswheretheypassSamarindaontheeastoftheislandeveryfiveminutesontheirwaytooffshoreanchorages.AsimilarsightcanbeseeninthesoutheastatBanjarmasin.Thesebargescarrybetween6000to8000tonnesofcoalandthevolumesontheseriversaresohighthereisoftencongestionatbridgesandotherrivercrossingsaswellastugswaitingforaccesstothedredgedriverchannelstotakecoalouttoloadingplatforms.SuchcongestionisoneofmanytransportproblemsthatminingcompaniesfaceonKalimantan.Otherissuessuchaspoorinfrastructureandunclearrulesandregulationshavecreatedaneedforcoalminingcompaniesandbuyerstoseekexpertconsultancyandadvice.ISSreinforceditspresenceinIndonesiain2009byformingastrategicalliancewithSSYIndonesia.AjointventureagencycompanyPTEquatorMarindowasformedandbrandedasISS-Marindoprovidingbestinclassportagencyservicesacrossthearchipelago.BesidesgeneralagencyISS-Marindooffersstevedoringservicesincludinggrableasing.WithsinglewindowmanagementandstreamlinedmultiplebranchoperationstheISS-MarindonetworkcoversSamarindaBanjarmasinMerakAnyerSurabayaBalikpapanandofcourseJakarta.ToensurequalityserviceTacklingtoughtransportationandlogisticalchallengeslevelsarecontinuouslymonitoredbasedonfeedbackfromcustomers.TheninresponsetocustomerdemandISSestablishedPTMarindoIndonesiain2010launchingtheonlyindependentcompanyinthecountryfocusingsolelyontugbargeandtrans-shipperoutsourcingservices.ByconsciouslysteeringclearofassetownershipoftugsorbargesPTMarindoIndonesiapridesitselfonofferingafairanindependentservicethatputsitsclientsx19interestsattheheartofitsactivities.IthasquicklyexpandedfromitsheadquartersinJakartaandnowhasofficesinEastandSouthKalimantan.PTMarindoIndonesiamanagesthelogisticsneededforrivertransportincludingtugsbargesandrelatedoperationalissues.Servicesincludedaytodaymaintenancesupervisingdrydockingrepairsandroutineinspectionsoftugsbargesandtrans-shippers.ThecompanyalsoprovidesmonthlytechnicalandfinancialreportsshowinghowithasspentandsavedmoneyforitsclientsandhowithasperformedagainstagreedKPIs.WithofficesinSamarindaandBanjarmasinPTMarindoIndonesiasharesbestpracticewithotherexpertsinthesamefieldaroundtheworldandhasestablisheditselfasatrustedsourceoftransportationinformationadviceandtechnicalexpertiseforlocalminingcompanies.BytakingcareofthedaytodayoperationofcoalshipmentsfromKalimantanithasenabledprincipalstostreamlinetheiroperationsandfocusontheircorebusiness.Itispredictedthatincreasinglyminingcompanieswillfindowningtheirownassetssuchastugsandbargesandthenoutsourcingtheiroperationalmanagementtologisticsexpertswillbefarmorecost-effectivethandirectlyemployingtheirownstafftodothejob.PTMarindoIndonesiafocusesitsattentiononthechallengesandopportunitiesfacedbythelocalminingandshippingindustry.ItfirmlybelievesthatmeetingsuchchallengesiscrucialforthefuturegrowthandprosperityofmininginKalimantanandIndonesiaatlarge.OnehundredpercentofPTMarindoIndonesiax19sbusinesscurrentlycomesfromKalimantanwhereithasfourstaffbasedinitstwoofficesontheisland.Thecompanyhandled3milliontonnesofcoalforbargingandtrans-shippingactivitiesinKalimantanin2011andthisyearitexpectstocarry5milliontonnesinlinewiththecontinuedgrowthoftheindustry.MeanwhileISS-Marindomanagedaround3.5milliontonnesofcoallastyearandexpectstohandle4millionin2012.Itemploys10peopleinKalimantanwherearound40-50percentofitsbusinessisfocused.BothcompaniesplantoexpandtheiroperationsinCentralKalimantanintheshorttermandSumatrainthemediumtermNotcontentwithjustofferingmarineagencyandtugandbargemanagementsolutionsISSalongwithitsstrategicpartnerSSYandpreferredvendorsisdevelopingfurtherservicestoprovidebettercontroloverthesupplychainofacoalshipmentfromminetovessel-cargoagencysolutionsincludingquantityandqualityassurancebargecoordinationandphysicaltestingandinspectionservices.Suchapackageoftailor-madeserviceswillreducetherisksinherentincargocarriagewhilstprovidingaconstantinformationflowtocustomers.CoaltranshipmentoperationsatAdangBayKalimantan