DP World advises on Indonesia’s development

PT Terminal Petikemas Surabaya DP World's PT Terminal Petikemas Surabaya. Image courtesy of PT. Terminal Petikemas Surabaya - Facebook
Industry Database

DP World will advise on the development of two Indonesian ports to help the country grow its domestic and international trade.

Following the signing of a technical assistance contract with the Indonesian government and port officials, DP World will share its knowledge and experience in increasing efficiencies, training and development for employees and developing multi-modal transport hubs at the the Kuala Tanjung greenfield Port and logistics zone and the Port of Belawan in North Sumatra.

DP World group chairman and CEO, Sultan Ahmed Bin Sulayem, said: “This partnership highlights Indonesia’s efforts to accelerate development of its ports and trade infrastructure, something we can help with given our global experience of advising governments on connecting with international markets.

“Our existing operations at PT Terminal Petikemas Surabaya (TPS) give us an added advantage of understanding local and regional markets and we look forward to working with the Indonesian port authorities on developing international and domestic trade.”

DP World will be reviewing operations at Belawan Port and advising on efficiency improvements, and plans for the Kuala Tanjung greenfield port and logistics zone to reduce costs.

Recent analysis by Drewry shows that Indonesia’s container shipping trade is strengthening as it acquires more direct mainline services. French carrier CMA CGM recently reconnected Indonesia with its first direct container service to/from Europe in over a decade, while the same carrier, under the umbrella of the Ocean Alliance, initiated a new Transpacific connection when Jakarta was added to the Columbus Loop.

Indonesia’s expansion projects include the Port of Tanjung Priok, where work is already underway, and plans for a new facility in nearby Patimban.

Tanjung Priok port authority has embarked on an expansion programme to create seven new container terminals under a two-phase development that will push overall capacity to just over 12m teu by 2021 and up to 19.5m teu by 2024. The first new facility, Kalibaru North Container Terminal, was inaugurated in September 2016.

Patimban Port, 150km east of the Port of Tanjung Priok, will offer container capacity of 1.5m teu once partly completed in 2019 and then 7.5m teu when fully completed in 2027.

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