DP World drops Indonesia terminal
DP World has decided not to renew its operating contract for PT Terminal Petikemas Surabaya (TPS) in Indonesia at the end of the agreement in 2019.
The group, which has a 49% share in TPS, stated that it will see no material financial impact as a result of the move.
TPS, which is located on the west part of Tanjung Perak Port, is known as The Gateway to East Java and Eastern Indonesia due to its strategic positioning, directly connecting to the Surabaya toll way and railway routes.
Commenting on the decision, Sultan Ahmed Bin Sulayem, DP World’s group chairman and chief executive, said: “It is unfortunate that the significant positive contributions made by global terminal operators in Indonesia have not been fully recognised, despite our successful track record.
“We are therefore disappointed that the operating contract renewal terms offered by the Indonesian authorities did not meet our threshold for continued investment.
“Adhering to strict financial discipline has been crucial to the growth of DP World and on that basis we are not able to renew the agreement beyond 2019.”
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