SBU Cargo handles cargo transportation services by air transport using the aircraft of Garuda Indonesia. In addition to direct selling, SBU Cargo also promotes its services through cooperation with its partners, i.e. various Agents or Freight Forwarder and GSSA for both domestic and international destinations.
SBU Cargo through Cargo Service Center (CSC) handles "City to Port" and "City to City" cargo transportation services so that the delivery process of cargo can be closer to the sender and beneficiary. At the end of 2013, around 30 Cargo Service Center has been established at several big cities in Indonesia, like Bandung, Yogyakarta and Makassar, complementing to CSC that has been existed at airports. In Jakarta, 9 CSC offices has been established which was widely spread at some regions in Jakarta. SBU Cargo formed cooperation with a number of airlines such as Korean Air, Malaysia Airlines, China Airlines to expand cargo deliveries to various destinations overseas.
In addition, SBU Cargo also managed its own warehouse operations at the Cengkareng Warehouse, Soekarno-Hatta. Meanwhile, activities at other warehouses are handled by third party service providers. Consistent with the growth in cargo at Cengkareng airport, SBU Cargo has cooperated with other warehouse managements, like PT Gapura Angkasa and PT Pos Logistik, aiming to expand area for warehouse management, particularly for local delivery services.
Garuda Indonesia Cargo signed agreement on Road Feeder Services (trucking) with a Dutch based trucking company, Jan de Rijk in Munich, Germany on June 2013. Under this collaboration agreement, Garuda Cargo can serve cargo delivery to more than 30 destinations in Europe. Cargo delivery will be carried by plane from Jakarta to Amsterdam, to be distributed by Jan de Rick to destination cities in Europe.
At the end of 2013, SBU Cargo has offered "door to door" cargo services, in cooperation with third parties and reintroduced its GO Express product. This product allowed customers to enjoy pick up services directly from their place and delivered to the beneficiary, similar to courier services.
In 2013, Freight Tonne Carried recorded at 269,033 tonnes, or increased by 15.98% compared to that in 2012, while the Freight Tonne Kilometer reached 570,068 or increased by 15.18%. Cargo Load Factor recorded at 46.08%, a decline from 47.51% in 2012 as a result of increasing capacity, particularly for domestic sector.
During 2013, total revenues from air cargo services grew by 5.51% from USD 184.8 million in 2012 to USD 195.0 million in 2013. The increase in revenues was driven by a 18.75% capacity increase of Freight Available Tonne Kilometer and the implementation of competitive pricing strategy which affected the growth in cargo carried. Revenue from cargo contributed the largest to total revenues from cargo services of USD 186.3 million in 2013, an increase from USD 177.8 million in 2012. The remaining revenues were attributed to the postal delivery revenues amounted to USD 8.8 million, or increased by 24.5% compared with the previous year.
Other revenues from SBU Cargo was derived from warehouse services at Cengkareng Warehouse, Soekarno- Hatta Airport, which increased by 9.93% from USD 24.3 million in 2012 to USD 26.7 million in 2013.
To achieve Operational Excellence, SBU Cargo has applied international standard for its business activities by having IOSA certification. In addition, Garuda Indonesia is the only domestic airline which has licence for Dangerous Goods management in Indonesia. Improvement in services was also carried out at warehouse involving cargo delivery process. Currently, SBU Cargo has provided cool room and Cold storage to deal with perishable product storage.