DP World and Indonesian conglomerate Maspion Group have agreed to create a US$1.2bn container port and industrial logistics park in East Java.
It is the first joint venture of its kind in the Indonesian transportation sector involving a private sector partnership between an FDI partner and a private sector Indonesian company, within the context of co-operation in maritime services with the state-owned maritime services operator Pelindo III.
Two term sheet agreements aim to create a modern, integrated container terminal and industrial logistics park, expected to play a vital role as a trade gateway for Eastern Java.
It includes cooperation in setting up Maspion International Container Port in Gresik, East Java, with an investment of US$ 1.2bn and 3m teu of capacity using electric power in its operations to help cut carbon emissions.
It is hoped that an integrated 360 ha industrial and logistics park will provide an environment for Indonesian and international businesses to drive economic growth and job creation.
The project is expected to break ground later this year and commercial operations are being planned for the first half of 2022.
Sultan Ahmed bin Sulayem, DP World group chairman and CEO, said: “This partnership will be a major addition to our global portfolio and a new step in our ongoing expansion.”
DP World ended its concession agreement with Pelindo 3 at the Surabaya Container Terminal in April 2019.
The new agreements confirm a long-term strategic partnership in the economic development of the country which has been growing rapidly in recent years. Indonesia has the fastest rate of growth in electronic retail in South East Asia.