JAKARTA -DP World has partnered with Canadian investment group Caisse de Depot et Placement du Quebec (CDPQ) has signed a US1.2 billion long-term agreement with Indonesia’s Maspion Group to start the construction of an international container port and industrial logistics park in Gresik — enhancing East Java’s position as a key trade gateway for Indonesia.
Under the agreement, a joint venture company will be established between DP World, CDPQ and Maspion Group, which the terminal operator said was the first of its kind in the Indonesian transportation sector involving a foreign direct investor and a private sector Indonesian company.
“DP World Maspion East Java will become the sole operator of a modern international container port with design capacity of up to three million twenty-foot equivalent units (TEU),” it said in a statement.
DP World and CDPQ will also work with Maspion Group to develop an integrated industrial and logistics park, adjacent to the Container Terminal, with an initial land area of 110 hectares with scope for future expansion.
DP World previously operated the PT Terminal Petikemas Surabaya (TPS) terminal in Surabaya, also in East Java, a concession it acquired with the purchase of P&O Ports, however, it did not renew the agreement to continue operating the terminal when the deal expired in 2019.
Groundbreaking in 2021; operations by 2023
Groundbreaking on the Gresik container terminal is expected to take place this year, with commercial operations expected to begin in 2023.
“The partnership with Maspion Group is an important development in our global ports and logistics network. Indonesia is rapidly developing as one of the world’s most important economies. This project will create a modern, efficient infrastructure, as well as an industrial zone that provides quality logistics,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.
Emmanuel Jaclot, executive vice-president and head of Infrastructure at CDPQ, said through the partnership, “CDPQ is delighted to make its first infrastructure investment in Indonesia, a strong growth market which benefits from favourable structural trends.”
Dr. Alim Markus, chairman and CEO of Maspion Group, noted that “Maspion Group is committed to supporting Indonesia’s sustainable economic development to be aligned with President Jokowi’s grand plan to make Indonesia the fifth largest economy in the world.”
He said Surabaya is an important gateway in Indonesia and the existence of this Container Port will further enhance economic development and investment opportunities in Indonesia.
Since its launch four years ago, the US$8.2 billion DP World-CDPQ platform has invested in 10 port terminals globally.