DP World in pact to build $1.2b port in Indonesia
Deal signed for long-term port and industrial logistics park
DP World, the leading provider of smart supply chain logistics, alongside its partner Caisse de dépôt et placement du Québec (CDPQ), a global investment group, signed a long-term agreement with Indonesia’s Maspion Group to start the construction of an international container port and industrial logistics park in Gresik.
Work on the projects is expected to begin in the third quarter of 2021, with an investment of up to $1.2 billion, enhancing East Java’s position as a key trade gateway for Indonesia.
The signing ceremony was held in the presence of the Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure, and Luhut Binsar Pandjaitan, Coordinating Minister for Maritime and Investment Affairs of the Republic of Indonesia, in Jakarta.
Sultan Ahmad Bin Sulayem, Group Chairman and CEO of DP World, and Dr Alim Markus, Chairman and CEO of Maspion Group. signed the agreements
Sole operator
Under the agreement, a joint venture company will be established between DP World and CDPQ’s global investment platform and Maspion Group, the first of its kind in the Indonesian transportation sector involving an FDI partner and a private sector company.
DP World Maspion East Java will become the sole operator of a container port with design capacity of up to three million twenty-foot equivalent units (TEU). DP World and CDPQ will also work with Maspion to develop an integrated industrial and logistics park, adjacent to the Container Terminal, with an initial land area of 110 hectares with scope for future expansion.