US$1.2bn Indonesian container port planned

Two preliminary agreements between DP World and Indonesia’s Maspion Group have been signed to set up Maspion International Container Port in Gresik, East Java, with 3m teus of capacity and electric power to help cut operational carbon emissions.

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.”

First JV

This is the first joint venture of its kind in the Indonesian transportation sector involving a private sector partnership between an FDI partner and a private sector Indonesian company in Maspion, within the context of cooperation in maritime services with the state-owned maritime services operator Pelindo III.

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.

Construction work on the project is expected to begin later this year and commercial operations are being planned for the first half of 2022.

By Rebecca Jeffrey