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DP World and CDPQ partner with an Indonesian firm to build a port and an industrial logistics park in Gresik, East Java
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Work on the projects set to begin in the third quarter of 2021
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Groundbreaking on the container terminal to take place this year; commercial operations to begin in 2023
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The integrated industrial and logistics park will have an initial land area of 110 hectares with scope for future expansion
Logistics company DP World and its investment partner Caisse de dépôt et placement du Québec (CDPQ) have signed a long-term deal with Indonesian conglomerate Maspion Group to construct an international container port and an industrial logistics park in Gresik, East Java, Indonesia.
Work on the projects is expected to begin in the third quarter of 2021, with a total investment of up to US$1.2 billion, enhancing East Java’s position as a key trade gateway for Indonesia, according to a joint statement from DP World and CDPQ.
The signing ceremony was held March 5 in the presence of Indonesia’s Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan and the United Arab Emirates’ Minister of Energy and Infrastructure Suhail Al Mazrouei in Jakarta.
The formal agreements were signed by DP World chairman and CEO Sultan Ahmed Bin Sulayem and Alim Markus, chairman and CEO of Maspion Group.
Under the agreement, DP World and CDPQ’s global investment platform will establish with Maspion Group a joint venture (JV) company, the first JV of its kind in the Indonesian transportation sector involving a foreign direct investor 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.
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 a world-class trade environment for domestic and international businesses to help drive economic growth and create jobs, said the statement.
Groundbreaking on the container terminal is expected to take place in 2021, with commercial operations expected to begin in 2023. The project will develop East Java’s infrastructure as part of Indonesian President Joko Widodo’s vision to accelerate economic growth through his Indonesia Golden Generation 2045 strategy.
Photo courtesy of DP World
