US$1.2bn port development for Indonesia

DP World, alongside its partner Caisse de dépôt et placement du Québec (CDPQ), a global investment group, has signed a long-term agreement with Indonesian conglomerate Maspion Group. The port in Gresik, East Java, will have a design capacity of up to 3m TEU.

Sultan Ahmed Bin Sulayem, Group chairman and CEO of DP World, said: “The partnership with Maspion Group 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.”

Joint venture company

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 (FDI) partner and a private sector Indonesian company. DP World Maspion East Java will become the sole operator of the container port.

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 serve domestic and international businesses, to help drive economic growth and create jobs.

Work on the projects is expected to begin in the third quarter of 2021, with a total investment of up to US$1.2bn, enhancing East Java’s position as a key trade gateway for Indonesia.

Since its launch four years ago, the US$8.2bn DP World-CDPQ platform has invested in 10 port terminals globally and across various stages of the asset life cycle.