Dubai-based port operator DP World and Indonesia’s conglomerate Maspion Group have signed two preliminary agreements with an aim to create a USD 1.2 billion container terminal and an industrial logistics park in the Indonesian province of East Java.
As explained, 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 Pelindo III.
Under the two term sheet agreements, a modern, integrated container terminal and a 360-hectare industrial and logistics park are planned to be constructed. They are expected to play a vital role as a trade gateway for Eastern Java.
The parties intend to construct Maspion International Container Port in Gresik that will have a capacity of 3 million TEUs and use electric power in its operations to help cut carbon emissions.
The project is expected to break ground later this year and commercial operations are being planned for the first half of 2022.
“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,” Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO and Chairman of Ports, Customs & Free Zone Corporation, commented.
DP World ended its concession agreement with Pelindo 3 at the Surabaya Container Terminal in April 2019. The new agreements are said to confirm a long-term strategic partnership in the economic development of the country which has been growing rapidly in recent years.
”This collaboration is a major development for the two groups, and a new step in Maspion Group’s ongoing expansion,” Alim Markus, President Director and CEO of Maspion Group, pointed out.