DP World has announced it has signed two preliminary agreements with Indonesia’s leading conglomerate Maspion Group to build a new container port and logistics warehouse in East Java worth approximately US$1.2 billion.
According to a statement, the exchange of agreements was witnessed by HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces, as well as Joko Widodo, President of Indonesia.
The agreements aim to create a modern, integrated container terminal and logistics park, expected to play a vital role as a trade gateway for eastern Java.
Once operational, the 360 hectare ‘Maspion International Container Port’ will have a capacity of 3 million TEU, and use electric power to ensure emissions are kept to a minimum.
It is expected to break ground later this year and be operational by the first half of 2022.
Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, had this to say: “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.
“Our business model and vision are aligned with President Jokowi’s commitment to continue his infrastructure focus and to make sure it is interconnected.
“We believe it will further consolidate the excellent relations between the UAE, the Indonesian government and Pelindo 3 and take DP World’s presence in the country to a new level”.
DP World has long sought to position itself as a vital enabler of global trade and has invested heavily in accelerating development across the world. To that end, it has also pursued new technologies, such as hyperloop.
Indonesia, DP World hopes, will become a key part of its global trade network, as it has the fastest rate of growth in electronic retail in South East Asia.