Dubai: DP World, the leading provider of smart supply chain logistics, alongside its partner Caisse de dépôt et placement du Québec (CDPQ), a global investment group, signed a long-term agreement with Indonesia’s 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 US$1.2 billion, enhancing East Java’s position as a key trade gateway for Indonesia.
The signing ceremony was held in the presence of the Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure, and Luhut Binsar Pandjaitan, Coordinating Minister for Maritime and Investment Affairs of the Republic of Indonesia, in Jakarta at the Indonesia-Emirates Amazing Week 2021 Building Path Towards Economic Recovery business forum. The signatories of the formal agreements are Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, and Dr. Alim Markus, Chairman and CEO of Maspion Group.
New joint venture
Under the agreement, a joint venture company will be established between DP World and CDPQ’s global investment platform and Maspion Group, 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 design capacity of up to three million twenty-foot 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 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.
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,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.
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. This investment will allow the partnership to pursue its objectives to further diversify its reach in terms of geography and trade lanes.
“Maspion Group is 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, ” Dr. Alim Markus, Chairman and CEO of Maspion Group.
Groundbreaking on the Container Terminal is expected to take place in 2021, with commercial operations expected to begin in 2023.