Project will develop infrastructure and a US$1.2 billion container port and industrial logistics park in East Java
DP World alongside its partner Caisse de dépôt et placement du Québec (CDPQ), a global investment group, recently signed a long-term agreement with Indonesia’s leading conglomerate Maspion Group to start the construction of an international container port and industrial logistics park in Gresik.
Work on the projects is expected to begin in the third quarter of 2021, with a total investment of up to US$ 1.2bn, enhancing East Java’s position as a key trade gateway for Indonesia.
The signing ceremony was held in the presence of Coordinating Minister for Maritime and Investment Affairs of the Republic of Indonesia, Luhut Binsar Pandjaitan, and the United Arab Emirates’ Minister of Energy and Infrastructure, HE Suhail Al Mazrouei, in Jakarta at the Indonesia-Emirates Amazing Week 2021 Building Path Towards Economic Recovery business forum.
The signatories of the formal agreements are Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, and Dr. Alim Markus, Chairman and CEO, Maspion Group.
Joint venture
Under the agreement, a joint venture company will be established between DP World and CDPQ’s global investment platform and Maspion Group, the first of its kind in the Indonesian transportation sector involving a foreign direct investor (FDI) partner 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). 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.
The Park will provide world-class trade environment for domestic and international businesses to help drive economic growth and create jobs.
“The partnership with Maspion Group is an important development in our global ports and logistics network,” remarked Bin Sulayem.
Partnership
“Through this partnership with Maspion, CDPQ is delighted to make its first infrastructure investment in Indonesia, a strong growth market which benefits from favourable structural trend,” commented Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ.
“Maspion Group is committed to support Indonesia’s sustainable economic development and to make Indonesia the fifth largest economy in the world,” noted Markus.
Groundbreaking on the Container Terminal is expected to take place in 2021, with commercial operations expected to begin in 2023.
