PSA and KAI ink MoU on rail logistics in Indonesia

PSA (Indonesia) and KAI have inked a Memorandum of Understanding (MoU) collaborate on enhancing the rail and rail-linked logistics ecosystem in the world’s fourth most populous nation.

Singapore-headquartered terminal operator PSA International has been expanding its presence into logistics including with the acquisition of BDP International.

PSA and Kai will work on joint feasibility studies to develop cooperation plans and explore potential co-investment in new or existing rail-linked infrastructure in Indonesia.

Ong Kim Pong, Regional CEO Southeast Asia, PSA International, said, “We are pleased to embark on this strategic partnership with KAI, the biggest operator of public railway in Indonesia. This is a significant milestone for us as we advance our Port+ services, PSA’s unique differentiator in mid-mile logistics, to meet our customers’ dynamic needs.”

PSA is one of four shareholders in North Priok Container Terminal 1 in Indonesia’s largest port of Tanjong Priok. The other shareholders are Pelindo II, Mitsui & Co, and NYK.

Didiek Hartantyo, President Director of KAI, commented: “Our joint efforts will give rise to a comprehensive logistics ecosystem, seamlessly amalgamating our domestic networks with global connectivity. Through this partnership, we are dedicated to establishing a robust distribution system aimed at reducing national logistics costs."

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