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DP World inks agreement on $1.2bn Indonesian container terminal and logistics park development

DP World has inked agreements with Indonesia's Maspion Group to invest in a $1.2bn container terminal and logistics park in Gresik, East Java.

The Dubai terminal operator and maritime services group and the Indonesian conglomerate inked two term sheet agreements with aim to create a modern container terminal and logistics park in East Java.

The agreements would include setting up the $1.2bn Maspion International Container Port in Gresik, East Java, a 3m teu port using electric power for its operations. As well as an integrated 360 hectare industrial and logistics park.

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) Rini Soewarno.

“This partnership will be a major addition to our global portfolio and a new step in our ongoing expansion. It will also enhance our continuing commitment to Indonesia, one of the most important world economies,” said Sultan Ahmed Bin Sulayem, DP World group chairman and ceo and chairman of Ports, Customs & Free Zone Corporation.

The agreement see DP World committing to developments in Indonesia after ending its concession agreement with Pelindo 3 at the Surabaya Container Terminal in April 2019.

Read more: DP World to quit Indonesia's Surabaya port in 2019

“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,” the chairman said.

Alim Markus, president director and ceo of Maspion Group commented: ”This collaboration is a major development for the two groups, and a new step in Maspion Group’s ongoing expansion.”