DP World, the leading provider of smart supply chain logistics, said it has joined hands with Caisse de dépôt et placement du Québec (CDPQ) and Indonesia's leading conglomerate Maspion Group to set up an international container port and industrial logistics park at Gresik region of East Java. 

 

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

 

As per the agreement, DP World will set up a joint venture company along with CDPQ's global investment platform and Maspion Group - a first of its kind in the Indonesian transportation sector involving a foreign direct investor (FDI) partner and a private sector Indonesian company - for the project.

 

DP World Maspion East Java will become the sole operator of a modern international container port with design capacity of up to three million 20-foot equivalent units (TEUs). 

 

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 provide world-class trade environment for domestic and international businesses to help drive economic growth and create jobs, said the statement from the Dubai group.

 

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

 

DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem and Maspion Chairman and CEO Dr Alim Markus signed the agreement in the presence of Indonesian Co-ordinating Minister for Maritime and Investment Affairs of Indonesia Luhut Binsar Pandjaitan and the UAE Minister of Energy and Infrastructure Suhail Al Mazrouei in Jakarta at the Indonesia-Emirates Amazing Week 2021 Building Path Towards Economic Recovery business forum.

 

This investment will allow the partnership to pursue its objectives to further diversify its reach in terms of geography and trade lanes, it stated.

 

Bin Sulayem 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. 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," he added.

 

CDPQ Executive VP and Head of Infrastructure Emmanuel Jaclot said: "Through this partnership with Maspion, CDPQ is delighted to make its first infrastructure investment in Indonesia, a strong growth market which benefits from favourable structural trends."

 

"It also represents an important milestone for our joint platform with DP World with the addition of a first greenfield port to our portfolio of high-quality assets that have demonstrated their resilience over the past year despite important shifts in the global supply chain landscape," noted Jaclot.

 

Dr Markus said Maspion was committed to support Indonesia's sustainable economic development to be aligned with President Jokowi's grand plan to make Indonesia the fifth largest economy in the world.

 

"Surabaya is an important gateway in Indonesia and the existence of this Container Port will further enhance economic development and investment opportunities in Indonesia," noted Markus.

 

Groundbreaking on the container terminal is expected to take place this year, with commercial operations expected to begin in 2023, he added.-TradeArabia News Service