DP World alongside its partner Caisse de dépôt et placement du Québec (CDPQ), a global investment group, have signed a long-term agreement with Indonesia’s leading conglomerate Maspion Group to start the construction of an international container port and industrial logistics park in Gresik, eastern Java, Indonesia.
[s2If is_user_logged_in()]According to a statement, 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.
Groundbreaking on the container terminal is expected to take place in 2021, with commercial operations expected to begin 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.
The Gresik development is the second proposed port development in Java, following January’s announcment of the development at Patimban, near Jakarta.
“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.
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 a capacity of up to 3 million TEU. DP World and CDPQ will also work with Maspion Group to develop an integrated industrial and logistics park, adjacent to the box terminal, with an initial land area of 1.11 million m² 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, according to an announcement.
Since its launch four years ago, the US$8.2 billion DP World-CDPQ platform has invested in 10 port terminals globally.
Emmanuel Jaclot, executive vice president and head of infrastructure at CDPQ commented, “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.”
Dr Alim Markus, chairman and CEO of Maspion Group, stated, “Surabaya is an important gateway in Indonesia and the existence of this container port will further enhance economic development and investment opportunities in Indonesia.”
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