Kalla Lines Rides the Wave of Nickel Demand with Its Fleet

The Kalla Group, through its logistics service company Kalla Lines, is expanding its business in the nickel sector this year.

The company plans to add four sets of barges with a total investment of up to Rp 150 billion by the end of 2023.

According to Kalla Lines Chief Operation Officer (COO) Muhammad Naim, the company currently has one set of barges consisting of one tugboat and one barge operating in Southeast Sulawesi since 2022.

The ships are used to transport nickel ore material from PT Tiran, one of the Kalla Group’s partners. “We only work with one company, but in large quantities. We see a huge revenue potential from this barge business, especially since the Kalla Group will start operating a nickel smelter at the end of this year. We are optimistic about this opportunity,” Muhammad Naim said.

To seize the growing market demand, Naim plans to increase the number of barges to five sets by the end of this year. The procurement will be done gradually by purchasing one set of a fleet consisting of one tugboat and one barge in August.

Then, another set composed of one tugboat and two barges will be added later. “Our market share is currently below five percent. We are confident that we can capture more of the barge market starting next year,” he said.