Northline will initially handle two-way freight with Indonesia through its new $4M Distribution Centre in Darwin, using its national freight network to transport goods throughout Australia.

The alliance provides customers with an integrated transport infrastructure between Australia and Indonesia. Developing a logistics service via Darwin will cut two weeks from the traditional shipping lead-time between Indonesia and Sydney or Melbourne. Markets that will benefit from this new door-to-door service include importers and exporters, manufacturing, mining and resources, oil and gas companies.

Northline is a national freight forwarding company which provides express and general freight services and contract logistics throughout mainland Australia. Based in Indonesia, Mitra Intertrans Forwarding is a major freight forwarding and logistics provider throughout South East Asia.

By combining resources, the two privately-owned companies can provide their clients with single-supplier freight forwarding solutions between Indonesia and Australia through the Port of Darwin, reducing the shipping lead-times for the traditional east coast ports from 20 to six days.

The memorandum of understanding between Northline and MIF was signed at a Darwin Chamber of Commerce event on Wednesday, September 27.

Northline Chief Operating Officer Phillip Taylor said the strategic alliance with MIF enabled the company to provide its clients with international freight forwarding. “Many of our existing clients require an end-to-end service throughout Asia, so now Northline can provide that single-supplier service,” he said.

“Our focus will be on expediting the freight process between Indonesia and Darwin, then using our national freight network to transport goods throughout Australia. This overrides the shipping delays, waterfront bottlenecks and warehousing costs of shipping through Sydney or Melbourne.”

Northline is completing construction of a $4M, 4000-square-metre Distribution Centre in Darwin which, in addition to its existing 10,000sqm of contract logistics warehousing, provides a fully integrated facility to store and distribute goods, nationally and internationally. Initially, the MIF-Northline service will provide services between Indonesia and Darwin, with the potential to expand services to include Perth and Brisbane as demand requires.

Northline expects major opportunities for the international freight forwarding alliance to include:

• A mining and resources supply base in Darwin to service mines in Indonesia and beyond
• A reliable import hub for products manufactured in Indonesia, with onward distribution to all Australian markets on a “Just in Time” basis
• Reverse logistics, especially for equipment maintenance and repairs from Indonesian mines.

Mr. Taylor said the main benefits to customers were the reliability and increased speed of delivery offered by the service. “In the supply chain world, the two-week speed boost has a value, and can substantially reduce working capital invested in inventory,” he said.

“Freight currently comes from Indonesia via Singapore, typically to Sydney or Melbourne. This takes on average 20 days before it waits in shipping queues, clears customs and is then stored in costly metropolitan warehouses.

“The average shipping time to Darwin is six days followed by distribution to virtually any destination in Australia in a fraction of the normal time. We manage the whole freight process, using any shipping line and any mode of transport, to help our customers meet their business objectives.

“We conservatively estimate that the immediate market is worth more than $30M a year. Northline believes that extending its customised and responsive freight forwarding service to reach Indonesia and other regional destinations will unlock many new opportunities for the company.”

For more information about Northline, visit www.northlinefrieight.com.au

For media assistance and photographs, call John Harris at Impress Media Australia on 08 8431 4000 or email jharris@impress.com.au.