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REGIONAL REPORTSOUTHEAST ASIA


thanks to the Build Build Build programme, which has initially earmarked USD180 billion for infrastructure construction; an influx of investment from China to support the programme; and US interest in re-establishing its military presence in the Philippines. She is optimistic for the rest of 2019, too, in terms of preparation and planning stages. However, whether projects will actually be completed depends on numerous other factors, such as commitment from foreign investors and geopolitics. Estrada said that the Philippines


continues to benefit from Chinese investment into its infrastructure. Among the major projects for ASL is the Manila light rail transport (LRT) system. ASL delivered the mock-up late last year and, if all goes through, will be handling import cargoes for the project.


Outlook Renewable energy is generating business but there can be internal politics, as there is an overall conflict of interest for off-grid solutions with the existing model, said Estrada. Meanwhile, in a country with a


population of around 109 million and a median age of 26, food production and distribution will be critical in the future, generating some major investment projects. Mining developments will also continue, especially in the southern island of Mindanao, despite some opposition and new regulation. Batamindo Shipping & Warehousing


specialises in handling cargo between Singapore and Batam, the Indonesian island that is 20 km from Singapore. The company owns two barges and has a daily scheduled service. “Singapore is the transhipment hub for most of Batam’s cargo by air and sea,” said Jenny Ong, assistant sales and marketing manager. Here, too, there is fallout from what


happens in China. “Batam’s up-and-coming sector is plastic scrap, as other countries do not allow this to be imported,” said Ong. Chinese interests have set up factories in Batam to process the scrap and produce plastic pellets for export. Another industry generating cargo


volumes is the crude palm oil sector, producing fatty acids, cooking oil and other products. As to challenges, Ong said: “Indonesian


government policy and the increase in Batam port charges are our biggest challenges, and every customer is asking for lower ocean freight rates. Next is the unhealthy


114 May/June 2019


ALE demonstrates expertise with wind energy transport in Thailand


ALE has transported wind energy components across a challenging 1,000 km route to the Rom Klao wind farm in Mukdahan, eastern Thailand. The UK-headquarted engineered transportation


company was contracted for the full-service package including transportation, craneage and installation (TCI) of 13 wind turbines. With a hub height of 162 m, these are the tallest


wind turbines operational in Southeast Asia, said ALE. The company utilised its local routing and engineering expertise, and invested in specialist


competition we face; our competitors are slashing their rates in order to convince more customers to load with them.”


Export expectations Overall, however, Batamindo had a good 2018 and expects to do well this year too. US-China trade tensions and other factors are leading to a decentralisation of supply chains in the region, and there are also impacts from China’s slowdown, according to Jeffrey Shih, Dimerco Express Group’s vice president for Southeast Asia. Tariff risks, lower wages, skilled labour,


trade agreements and regional connectivity have prompted manufacturers to relocate their production lines from China to other countries in the region, he explained. “Major electronics firms such as Intel, Foxconn, LG and Samsung have moved to


transportation and installation equipment, such as RA4 tower clamps and a new K1650L tower crane, to complete the job. “This is a complex scope of work and route to be


undertaken. The new tower clamps enabled us to overcome the large diameters of the tower sections and reduce the travelling height to pass under the restrictions on route. “Combined with the tower crane, our equipment


and methodology has driven project efficiency,” said Matt Thomson, ALE project manager.


Vietnam due to the higher wages in China. In addition, several retail brands such as Nike, Adidas and Puma have shifted to Vietnam and Cambodia to reduce costs.” Dimerco foresees a rising trade flow


between ASEAN countries and China, and is looking to expand its cross-border road freight services covering major hubs across the region as an alternative solution to traditional air and ocean freight, said Shih. Nevertheless, Shih said that Dimerco


will need to overcome the challenges facing all those operating in Southeast Asian countries, including poor infrastructure, shortage of skilled labour, rising labour costs, lower productivity, higher operational costs, uncertain political environment and lack of transparency. This may scare investors, but Dimerco positions itself as a “China and ASEAN logistics specialist”.


ALE transported wind energy components across a challenging 1,000 km route to the


Rom Klao wind farm in Mukdahan, eastern


Thailand. With a hub height of 162 m, these are the tallest wind turbines operational in Southeast Asia, said ALE.


HLPFI www.heavyliftpfi.com


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