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Tuesday, June 19, 2007

Faster access to Eastern Europe now available: Diplomat

Andi Haswidi, The Jakarta Post, Jakarta

Indonesian exporters exploring new opportunities in the Eastern European market may want to consider alternative routes to the region other than using traditional ports, such as Hamburg, Amsterdam, or Rotterdam.

Due to the benefit of geographical proximity plus new infrastructural developments, at least four ports in the Adriatic now offered access that was five days faster to the region.

"By using the Adriatic ports, exporters can save up to five days compared to shipping to Hamburg or Amsterdam," Indonesian Ambassador to Hungary Mangasi Sihombing told The Jakarta Post recently in Budapest.

Mangasi was referring to Dubrovnik, Rijeka and Ploce ports in Croatia, and Koper port in Slovenia. "I have personally visited them, and found them to be excellent ports that are able to accommodate large vessels."

Traditionally, Indonesian exporters used Hamburg, Amsterdam and Rotterdam to access both Western and Eastern Europe markets. Sailing times to these ports can be up to 45 days.

"In the past, importers were reluctant to use these (Adriatic) ports because of their size. But now, after the latest infrastructural developments, these ports have become cost-effective shipping destinations," Mangasi said.

Not only faster shipping, but also faster access to the countries that act as gateways to Eastern Europe, such as Hungary, only 8 hours drive from the Croatia ports, compared with 24 hours from Hamburg.

"New highways are now available, and excellent trucks are operated by the logistics companies," Mangasi said.

"Freight from the Adriatic ports can use the highways connecting all the countries in the region, such as Estonia, Latvia, Lithuania, Belarus, and further feeding into Russia, which has huge market potential with its emerging economy."

Commenting on the administrative procedures for accessing the region through the Adriatic ports, Mangasi said that because most of these countries had recently joined the European Union, the procedures in the ports were similar to those in the Western Europe countries, with which many Indonesian exporters were already familiar.

"Exporters should no longer worry about the paperwork. The Eastern Europe countries have become more up to date in this regard," he said.

Mangasi said that the main problem about using the ports was the lack of agents in Indonesia that could facilitate shipments to the region.

"Right now, Indonesian agents are dominated by the traditional ports. There must be an effort to establish a system that connects agencies in Indonesia to these new ports."

During a bilateral meeting between Trade Minister Mari Elka Pangestu and Hungarian Economics and Transport Minister Janos Koka in Budapest last week, Indonesia proposed that it use Hungary as a gateway for penetrating the Eastern European market, and signed a commitment to strengthen trade facilitation between the two countries.

Indonesian National Export Development Agency (BPEN) director Bachrul Chairi said that Indonesian exporters interested in seeking market opportunities in Hungary should contact the BPEN.

Source : TheJakartaPost

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