DP World to Invest $1.2 Billion in Indonesian Port

A $1.2 billion investment in Indonesia has been approved by Dubai's DP World. The result would be the creation of an international greenfield container port and industrial logistics park in the South Asian country. Commercial port operations are slated to begin from 2023.

Alongside its Canadian partner Caisse de dépôt et placement du Québec (CDPQ), Emirati multinational logistics company DP World signed an agreement with Indonesian giant Maspion Group for the development of the port of Gresik, in East Java.

"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 modern, efficient infrastructure, as well as an industrial zone that provides quality logistics,” said Group chairman and CEO of DP World, Sultan Ahmed Bin Sulayem.

The agreement asks for the creation of a joint venture company between DP World, CDPQ's global investment platform, and Maspion Group. It's unique for the South Asian country since it's the first time that a private sector Indonesian company has partnered up with a foreign direct investor (FDI) partner in the Indonesian transport sector.

Through their $8.2bn investment platform launched four years ago, DP World and CDPQ have jointly invested in 10 port terminals around the world.

Once operational, the 360 hectares ‘Maspion International Container Port’ will be able to house 3 million TEU goods, and use electric power to ensure emissions being kept to a minimum.

DP World is completely owned by the government of Dubai in the United Arab Emirates. This holding company is under the direct control of the Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, who is also Vice President and Prime Minister of the UAE.

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