DP World takes over operations at Belawan New Container Terminal

The strategic partnership between the Indonesia Investment Authority (INA), Indonesian government-owned port operator Pelindo, and DP World, will create Indonesia’s most direct link with the Malacca Strait, one of the world’s busiest shipping routes.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, Arif Suhartono, President Director of PT Pelabuhan Indonesia (Persero), and Ridha Wirakusumah, CEO of Indonesia Investment Authority, signed the agreement.

The agreement aims to increase BNCT’s capacity to 1.4m teu, up from 600,000 teu currently. BNCT will also aim to attract more direct calls, reducing North Sumatra’s reliance on regional hub ports to access regional and global markets.

The Malacca Strait region is served by three major transhipment hubs – Singapore, the Port of Tanjung Pelepas, and Port Klang, which feeder cargo to smaller ports across Southeast Asia such as Belawan in Indonesia.

The BNCT currently serves as a local hub for the neighbouring provinces in Sumatra and the  expansion and modernisation programme aims strengthen its position as a major trade and logistics gateway in the Malacca Strait.

Indonesia’s Minister of State-Owned Enterprises, Erick Thohir, stated that "As directed by President Joko Widodo, there is always strategic value for equity and acceleration of economic growth in the regions and nationally through port development, including this new container terminal at the Port of Belawan which is believed to support downstream to maximize exports in new ways and also accelerate the economy in North Sumatra which continues to grow. This is in accordance with the objectives of the Terminal port development which will strengthen the national port industry ecosystem, as well as the competitiveness of Indonesian ports as strategic trade routes in Southeast Asia and internationally."

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"We are proud to help Indonesia expand the Belawan New Container Terminal and support its ambitions to develop the economy of Sumatra through infrastructure. By investing in cutting-edge sustainable technologies, world-class training and the highest standards of health and safety, we aim to eliminate inefficiency and enable the flow of trade between Indonesia and the world," said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.