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DP World to quit Indonesia's Surabaya port in 2019DP World to quit Indonesia's Surabaya port in 2019

DP World is to quit Indonesia’s second largest port – Surabaya – after its current contract comes to an end in 2019.

Marcus Hand, Editor

September 18, 2017

1 Min Read
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The Dubai-headquartered terminal operator said it had reached the decision not to renew operating contract for PT Terminal Petikemas Surabaya (TPS) when its current agreement expires in 2019.

DP World said that the new contract offered by the Indonesian authorities did not meet its requirements for continued investment. The terminal is in Tanjung Perak the world’s 47th largest container port.

Sultan Ahmed Bin Sulayem, DP World group chairman and ceo, noted the contributions of DP World and other terminal operators in building up Indonesia’s infrastructure.

“It is unfortunate that the significant positive contributions made by global terminal operators in Indonesia have not been fully recognised, despite our successful track record. We are therefore disappointed that the operating contract renewal terms offered by the Indonesian authorities did not meet our threshold for continued investment,” he said.

“Adhering to strict financial discipline has been crucial to the growth of DP World and on that basis we are not able to renew the agreement beyond 2019. The transfer of operations will be in accordance to the terms and conditions of the contract.”

DP World has a 49% stake in TPS which has a capacity of 2.1m teu.

The terminal operator said the decision would have no material impact on its business.

The move comes just months after DP World signed a Technical Assistance Contract signed with the Indonesian government and state-owned port operator Pelindo I. Indonesia has long been seen as presenting great opportunities for international terminal operators, however, bureaucratic issues have proved problematic for investors.

DP World has a 20-year contract for TPS in Surabaya which was originally signed by P&O Ports prior to its acquisition by the Dubai-based terminal operator.

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About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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