DP World alongside its partner Caisse de dépôt et placement du Québec (CDPQ) has signed a long-term agreement with Indonesian conglomerate Maspion Group to start the construction of an international container port and industrial logistics park in Gresik. Work on the projects is expected to begin in the third quarter of 2021, with a total investment of up to $1.2bn, enhancing East Java’s position as a trade gateway for Indonesia.
Under the agreement, a joint venture company will be established between DP World and CDPQ’s global investment platform and Maspion Group, one of 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 a modern international container port with a design capacity of up to 3m 20 ft equivalent units (TEU). 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 ha with scope for future expansion.
Since its launch four years ago, the $8.2bn DP World-CDPQ platform has invested in 10 port terminals globally and across various stages of the asset life cycle. This investment will allow the partnership to pursue its objectives to further diversify its reach in terms of geography and trade lanes.
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 a modern, efficient infrastructure, as well as an industrial zone. DP World’s business model and vision are aligned with President Jokowi’s vision to spur faster economic growth through trade infrastructure development, more investment opportunities, and job creation.”
Work on the Container Terminal will begin in 2021, with commercial operations expected to start in 2023. The project will develop East Java’s infrastructure as part of President Joko Widodo’s vision to accelerate economic growth through his Indonesia Golden Generation 2045 strategy.
Source: DP World
