Dubai’s DP World inks $1.2bn agreement to build port and logistics park in Indonesia’s Gresik
Source: Gulf Business
Date: 7 March 2021
Dubai port operator DP World has partnered with Caisse de dépôt et placement du Québec (CDPQ) investment group to sign a $1.2bn agreement with Indonesia's Maspion Group to construct an international container port and industrial logistics park in Gresik in Indonesia.
Work on the projects is scheduled to begin in Q3 2020, and it is upon completion expected to enhance East Java's position as a key trading gateway for Indonesia.
A joint venture company called DP World Maspion East Java will be established between DP World, CDPQ and Maspion Group, the first of its kind in the Indonesian transportation sector involving a foreign direct investor and a private sector Indonesian company.
DP World Maspion East Java will become the sole operator of the international container port with design capacity of up to three million twenty-foot equivalent units (TEU).
Dubai's DP World and Canada's CDPQ signed long-term port and logistics park agreement with Maspion Group in Indonesia (Photo by Dubai Media Office)
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.
Commercial operations from the new container terminal are expected to begin in 2023, and will accelerate the country's Indonesia Golden Generation 2045 strategy.
"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," said Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World.
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.
Speaking about the latest project in Indonesia, Emmanuel Jaclot, executive vice president and head of Infrastructure at CDPQ said: "It 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."