The APRIL Group is a global leader in pulp and paper manufacturing, producing world class paper products for packaging, printing and various day-to-day use such as shopping bags and tissue paper. They have been a Sealand customer since 2016, a joint procurement endeavor with DHL Singapore.
When – like the APRIL Group - you’re shipping your products to 70 countries all around the world, speed and efficiency are critical in keeping the production and supply chain on track.
“The APRIL Group ships pulp from Indonesia to China, and the route they previously used went from their private terminal in Futong to Singapore or Port Klang, then transships from there to the final destination in China. However, they often encounter challenges with schedule stability and limited capacity of the barge service they were using,” explains Ristona Widoretno, Sealand Indonesia’s Reliance Sales Manager and Project Lead in the Futong Project. “If the barge’s limited capacity cannot accommodate any of their shipments, their cargo will need to wait for another 7 days for the next rotation. Additionally, there were also issues with equipment supply, further putting unnecessary pressure on their supply chain.”
To address these challenges Sealand Asia proposed a solution – a direct ocean service from APRIL Group’s terminal in Futong to China. This direct service circumvents the transshipments and schedule reliability challenges in their former route, offering improved efficiency in the ocean transport leading to a more cost-effective logistics and an improved equipment cycle.
“The Futong project is a showcase of our commitment to customer-centricity. We worked closely with the customer and various internal stakeholders to develop this customized solution, making sure that it addresses their pain points, reduces complexity and uncertainty while delivering reliable ocean transportation services to the customer’s upstream supply chain,” explains Lawrence Chua, Portfolio Head (Global Freight Forwarders) of Sealand Asia. “It is an exciting joint project with our global freight forwarder partner and shipper which has opened up opportunities for greater business collaboration.”
A successful trial shipment for empty discharge commenced February 20, 2021, followed a week later by a full shipment of laden containers. Going forward, the direct shipping route from Futong to China will be a weekly service.
“This is the first breakthrough for direct shipment from RAPP Futong port to China. It needs to be continued in the future, not only go to China, but also to other countries/destinations,” affirms Mhd. Ali Shabri, Operation Support Director PT Riau Andalan Pulp and Paper (APRIL Group’s operating arm in Riau Province, Indonesia).
Sealand Indonesia’s Country Manager Naheen Kaiser further shares “The Futong project is all about bringing a new solution to the customer to further strengthen their supply chain and at the same time increasing the stickiness with Sealand. The project holds significant potential and importance to us. The whole team put up a tremendous effort to bring this to life and now we have seen first batch of shipments loaded on our vessel last week - a moment of great joy and satisfaction for all of us. We look forward to creating more new opportunities and solutions together with our customers.”
If you’re interested in this project, or would like to explore similar solutions for your business, please contact your local Sealand representative.