DP World, CDPQ to build port in Indonesia’s Gresik
DP World and partner Caisse de dépôt et placement du Québec (CDPQ), have signed a long-term agreement of up to $1.2 billion with Indonesian conglomerate Maspion Group to build an international container port and industrial logistics park in East Java, DP World said on Saturday.
Construction in Gresik, East Java, is expected to begin in the third quarter of 2021. A joint venture company will be established between DP World, CDPQ’s global investment platform and Maspion Group.
DP World said the joint venture was the first of its kind in Indonesia’s transport sector involving a foreign direct investor partner and a private sector Indonesian company. The project will develop infrastructure and enable trade in rapidly growing economy of Asia.
Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, and Dr Alim Markus, chairman and CEO of Maspion Group, signed the formal agreement at the Indonesia-Emirates Amazing Week 2021 Building Path Towards Economic Recovery business forum in Jakarta.
Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Infrastructure, and Luhut Binsar Pandjaitan, Coordinating Minister for Maritime and Investment Affairs of the Republic of Indonesia, were also present on the occasion.
Bin Sulayem said the partnership is an important development in our global ports and logistics network. Indonesia is rapidly developing as one of the world’s most important economies. “This project will create modern, efficient infrastructure, as well as an industrial zone that provides quality logistics. DP World’s business model and vision are aligned with President Jokowi’s vision to spur faster economic growth through trade infrastructure development, more investment opportunities, and job creation,” he said.
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 a foreign direct investor partner and a private sector Indonesian firm.
“Through this partnership with Maspion, CDPQ is delighted to make its first infrastructure investment in Indonesia, a strong growth market which benefits from favourable structural trends. It also represents an important milestone for our joint platform with DP World with the addition of a first greenfield port to our portfolio of high-quality assets that have demonstrated their resilience over the past year despite important shifts in the global supply chain landscape,” Emmanuel Jaclot, executive vicepresident and head of infrastructure at CDPQ, said.
DP World Maspion East Java will become the sole operator of a modern international container port with design capacity of up to three million twenty-foot equivalent units.
DP World and CDPQ will also work with Maspion Group 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. The Park will provide world-class trade environment for domestic and international businesses to help drive economic growth and create jobs.
Dr Alim Markus, chairman and CEO of Maspion Group, said Maspion is committed to support Indonesia’s sustainable economic development to be aligned with President Jokowi’s grand plan to make Indonesia the fifth largest economy in the world. Surabaya is an important gateway in Indonesia and the existence of this Container Port will further enhance economic development and investment opportunities in Indonesia.
Since its launch four years ago, the $8.2 billion DP World-CDPQ platform has invested in 10 port terminals globally and across various stages of the asset life cycle. This investment will allow the partnership to pursue its objectives to further diversify its reach in terms of geography and trade lanes.
This project will create modern, efficient infrastructure, as well as an industrial zone that provides quality logistics Sultan Ahmed bin Sulayem Group chairman and CEO of DP World