PT GAC Samudera Logistics unveils USD4.4 million expansion plan

Construction of the US$4.4 million additional facility is expected to be completed by end of this year. It brings GAC's total investment to almost USD14 million since it set its sights on building Indonesia's largest and most advanced multi-user warehousing and distribution centre in 2003.

The operation will replicate the best practices of GAC's flagship Logistics Park in Jebel Ali, Dubai, which is the largest and most advanced of its kind in the Gulf region that sets the benchmark for the company's 3PL operations worldwide.

Strategically located in Lippo Cikarang in the Bekasi district, east of Jakarta, the extended facility will occupy a total of 9,000 square metres and offer an additional 12,000 pallet positions, increasing the current pallet capacity to 34,000. The GSL facility currently houses inventory of major corporations from diverse sectors such as consumer goods, healthcare and electronics.

Client surge

"The expansion is a necessity," says Kaare Thuesen, Managing Director of GAC Samudera Logistics. "Our existing facility is operating close to its optimal capacity, and demand is projected to continue to rise due to a surge in the number of international and domestic clients during the past year.

"The additional capacity will enable us to meet our existing customers' demand for organic growth, and also strengthen our positions when entering into new management agreements with additional customers."

G Shankar, GAC's Regional Business Development Manager for Third Party Logistics in Asia Pacific & the Indian Subcontinent, says this latest expansion is particularly timely, as the Indonesian logistics market is growing across the board, yet there is a shortage of quality infrastructure available to meet demand.

"Over the last couple of years, we have seen more and more companies in Indonesia outsourcing their logistics requirements to 3PL specialists. GSL's provision of IT-led, multi-user services will enable clients to enjoy a modern logistics platform and achieve economies of scale which help to drive costs down within the supply chain," he adds.