COSCO SHIPPING International (Singapore) Announces Strategic Expansion in Indonesia

Key Highlights

• PT Ocean Global Shipping Logistics (PT Ocean), a 40%-owned associated company of COSCO SHIPPING International (Singapore), has entered into a significant lease agreement through its subsidiary.
• The lease is for 15,530 square meters of land in Semarang, Indonesia—a key logistics hub.
• Lease agreement is valid for 10 years, starting from 1 November 2025 to 31 October 2035.
• The land will be used to construct new buildings and facilities for container depot services, as well as supporting transportation and warehousing operations.
• This move is expected to enhance GTM’s service capabilities and competitiveness in the region.

Details of the Transaction

The transaction involves several stakeholders:

• COSCO SHIPPING International (Singapore) Co., Ltd. owns 40% of PT Ocean.
• COSCO SHIPPING (South East Asia) Pte Ltd holds a 9% stake.
• PT Global Putra Indonesia Maritime (GPIM) owns the remaining 51%.

PT Ocean, in turn, owns 95% of PT Global Terminal Marunda (GTM), with GPIM holding the remaining 5%.

The lease agreement with PT Global Propertindo Internasional secures a prime parcel of land in Semarang—the growing logistics gateway in Central Java. This strategic location allows GTM to construct new facilities specifically tailored for container depot services, addressing rising demand for efficient logistics infrastructure in Indonesia’s rapidly expanding import/export sector.

Potential Impact on Shareholders

• Capacity Expansion: The new facilities will bolster GTM’s offerings in container depot, transportation, and warehousing services, enabling the group to better serve existing and future customers.
• Competitive Edge: Enhanced service capabilities may position COSCO SHIPPING International (Singapore) and its associates for increased market share in Indonesia, a key growth region for logistics and shipping.
• Long-Term Growth: Securing a 10-year lease provides stability and a solid foundation for long-term development, which may positively influence future earnings and shareholder value.
• Potential for Increased Revenue: Improved facilities and diversified services could attract new customers and strengthen relationships with current clients, supporting financial performance.
• Strategic Partnerships: The collaboration with both local and international partners demonstrates COSCO SHIPPING’s commitment to expanding its footprint in Southeast Asia, which may be viewed favorably by the market.

Share Price Sensitivity: The announcement signals a strategic investment in infrastructure and service capability, which could be viewed as a positive development by investors. This may have a material impact on future earnings, growth prospects, and potentially the share price, given the long-term nature and scale of the investment.

Conclusion

COSCO SHIPPING International (Singapore)’s move to expand its container depot and logistics infrastructure in Indonesia represents a significant step forward in its regional growth strategy. The investment in new facilities is expected to enhance service delivery, broaden customer offerings, and strengthen competitive positioning in a fast-growing market. Shareholders are advised to monitor further developments and financial disclosures related to this project, as its successful execution may influence the group’s long-term performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own analysis and consult professional advisers before making investment decisions related to COSCO SHIPPING International (Singapore) Co., Ltd.

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