Dubai ports operator DP World has signed an agreement with the Indonesian government to advise on the development of a new port and logistics zone in North Sumatra.
The agreement forms part of a Technical Assistance Contract, in which DP World will share its expertise in increasing efficiencies, training and development for employees and developing multi-modal transport hubs.
The work will centre around the Kuala Tanjung greenfield port and logistics zone, and the Belawan port in North Sumatra.
The agreement was signed by DP World Group Executive Vice-President and Chief Operating Officer Anil Wats, and state-owned port operator PT Pelabuhan Indonesia (Pelindo) I President Director, Bambang Eka Cahyana.
The event was also attended by Indonesian Minister of State Owned Enterprises Rini M Soemarno, Indonesian Ambassador to the UAE, Husein Bagis and senior DP World officials.
DP World Group Chairman and CEO Sultan Ahmad Bin Sulayem said in a statement: “This partnership highlights Indonesia’s efforts to accelerate development of its ports and trade infrastructure, something we can help with given our global experience of advising governments on connecting with international markets. In growing our global portfolio of 78 terminals in 40 countries we have become a knowledge exporter with insights on how to link countries with the goods they need. Our existing operations at PT Terminal Petikemas Surabaya (TPS) give us an added advantage of understanding local and regional markets and we look forward to working with the Indonesian port authorities on developing international and domestic trade.”
DP World will be reviewing operations at Belawan port and advising on efficiency improvements, and plans for the Kuala Tanjung greenfield port and logistics zone to reduce costs, which will positively impact prices of goods sold in the local market, according to the statement.
DP World’s PT Terminal Petikemas Surabaya (TPS) is located on the northern shore of eastern Java along the edge of Madura Strait.
Trade between Dubai and Indonesia in the first quarter of 2017 totalled Dh1.45 billion.