China to build for Indonesia 2500 ships

By Finance

2500 short sea service ships to be built by China for Indonesia, Indonesia Chamber of Commerce & Industry (Kadin) decided for import. This year the project will begin.
Natsir Mansyur, Vice Chairman of Kadin's Trade, Distribution and Logistics division said to Xinhua, the offical China News Agency, that Kadin has made an agreemetn with China and for 2,500 coastal and short sea ships. The deal is for US$5-billion and will be delivered gradually within five years beginning this year.
This big deal is made for improvement of the logistics and distribution performance among ports in the Indonesian archipelago which is the largest in the world with countless 17, 000 islands. For that reason transporting goods is difficult and very expensive. Logistics and infrastructure are not good enough.
According to a report from the World Bank the position of Indonesia is 59th behind the Philippines and Vietnam compared by Logistics Performance Index.