UAE-based terminal operator DP World and Indonesian conglomerate Maspion Group inked two preliminary agreements to create a US$ 1.2 billion container port and industrial logistics park in East Java, in line with Indonesian President’s efforts to accelerate economic growth.
This is the first joint venture of its kind in the Indonesian transportation sector involving a private sector partnership between an FDI partner and a private sector Indonesian company in Maspion, within the context of cooperation in maritime services with the state-owned maritime services operator Pelindo III.
Two term sheet agreements aim “to create a modern, integrated container terminal and industrial logistics park“, expected to play a vital role as a trade gateway for Eastern Java.
It includes cooperation in setting up Maspion International Container Port in Gresik, East Java, with an investment of USD 1.2 billion and 3 million TEU’s of capacity using electric power in its operations to help cut carbon emissions.
An integrated 360 hectare industrial and logistics park could also provide a trade environment for Indonesian and international businesses to help drive economic growth and job creation.
Our business model and vision are aligned with President Jokowi’s commitment to continue his infrastructure focus and to make sure it is interconnected. We believe it will further consolidate the excellent relations between the UAE, the Indonesian government and Pelindo 3 and take DP World’s presence in the country to a new level,
…Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO and Chairman of Ports, Customs & Free Zone Corporation, said.
DP World ended its concession agreement with Pelindo 3 at the Surabaya Container Terminal in April 2019.
Commercial operations are being planned for the first half of 2022.
The exchange of agreements was witnessed by HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces, and Joko Widodo, President of Indonesia.
Also present at the signing ceremony were the Indonesian Minister of Transportation, Budi Karya Sumadi, and Minister of State-Owned Enterprises (BUMN) Mrs. Rini Soewarno.
