Thursday, July 25, 2019

New Container Port and Logistics Park for Indonesia

Dubai Cash to Fund Development
Shipping News Feature
UAE – INDONESIA – DP World has signed two preliminary agreements with Indonesian conglomerate Maspion Group which will see the Dubai headquartered port operator create a $1.2 billion container port and industrial logistics park in East Java.

The deal is apparently the first joint venture of its kind in the Indonesian transportation sector involving as it does a private sector cooperation between a foreign direct investment (FDI) partner and a private sector Indonesian company in Maspion, within the context of co-operation in maritime services with the state-owned maritime services operator Pelindo III.

Two term sheet agreements aim to create a modern, integrated container terminal and industrial logistics park, expected to play a vital role as a trade gateway for Eastern Java. It includes cooperation in setting up Maspion International Container Port in Gresik, East Java, with an investment of $1.2 billion to handle up to 3 million TEU’s of capacity, also using electric power in its operations to help cut carbon emissions.

The partners claim an integrated 360 hectare industrial and logistics park would also provide a world class trade environment for Indonesian and international businesses to help drive both regional economic growth and job creation.

The project is expected to break ground later this year and commercial operations are being planned for the first half of 2022. The vision is to support East Java’s infrastructure as part of President Joko Widodo’s programme to accelerate economic growth. Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO and Chairman of Ports, Customs & Free Zone Corporation, said:

“This partnership will be a major addition to our global portfolio and a new step in our ongoing expansion. It will also enhance our continuing commitment to Indonesia, one of the most important world economies.

“Our business model and vision are aligned with President Jokowi’s commitment to continue his infrastructure focus and to make sure it is interconnected. We believe it will further consolidate the excellent relations between the UAE, the Indonesian government and Pelindo 3 and take DP World’s presence in the country to a new level.”

DP World ended its concession agreement with Pelindo 3 at the Surabaya Container Terminal in April 2019. The new agreements confirm a long-term strategic partnership in the economic development of the country which has been growing rapidly in recent years. Indonesia has the fastest rate of growth in electronic retail in South East Asia. Dr Alim Markus, President Director and CEO of Maspion Group commented:

“This collaboration is a major development for the two groups, and a new step in Maspion Group’s ongoing expansion.”

Photo: DP World’s Sultan Ahmed Bin Sulayem and Maspion's Dr Alim Markus, overseen by HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces, and Joko Widodo, President of Indonesia.