By Jeremy Lawrence
'Significant contributions' have not been recognised, according to company chairman
DP World will not renew its operating contract for PT Terminal Petikemas Surabaya (TPS) in Indonesia that will expire in 2019, according to company chairman Sultan Ahmed Bin Sulayem.
In a statement, Bin Sulayem said: “It is unfortunate that the significant positive contributions made by global terminal operators in Indonesia have not been fully recognised, despite our successful track record.
“We are therefore disappointed that the operating contract renewal terms offered by the Indonesian authorities did not meet our threshold for continued investment,” he continued.
DP World, the fourth largest port operator, is a 49 percent shareholder in TPS, which represents a gross capacity of 2.1 million TEUs (twenty-foot containers) out of 85 million TEUs for the Group.
A company statement said there would be no material financial impact on the Group as a consequence of this action.
Bin Sulayem restated the company’s ambitions to its investments in the east. “We remain committed to investing in Asia and all geographies that have an appetite for foreign direct investment,” he said.