At the end of August, Damco Indonesia welcomed the first cargo of clothing to its new warehouse in Semarang, Central Java. The warehouse is Damco’s fourth container freight station (CFS) facility in Indonesia and the second in Semarang to support the strong growth of the footwear and apparel industry in Central Java.
Following a thorough review of potential business partners, Damco Indonesia chose Monang Sianipar Abadi (MSA), a well-known warehouse operator with several facilities in the country. Located less than 2km from Semarang international seaport, the MSA warehouse boasts three chambers, two of which are exclusively for Damco’s use. For Damco Indonesia and MSA, the partnership brings mutual benefit: Damco gains valuable warehouse space, while MSA benefits from Damco’s unrivalled knowledge of the international logistics business.
Work remains to be done before the new warehouse meets the Supply Chain Security Program (SCSP) standard – but much progress has been made. Damco’s compliance, health and safety experts have been offering guidance to MSA on compliance. This has led to reinforced perimeters, a reconstructed loading dock with new canopies and walls being rebuilt. By August, MSA had complied with most of the SCSP standards and the remaining, non-critical improvements will be realized within the next year.
Within one week of opening, the two Semarang chambers were close to meeting their capacity. As a consequence, MSA is building two more chambers on spare land at the facility to meet rising demand in this important emerging market.