Two preliminary agreements are signed to create a container port and industrial logistics park in East Java
Two preliminary agreements between DP World and Indonesian conglomerate Maspion Group were signed on Wednesoday to create a $1.2 billion container port and industrial logistics park in East Java.
The exchange of agreements was witnessed by Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces, and Joko Widodo, President of Indonesia.
Two term sheet agreements aim to create an 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 $1.2 billion and 3 million TEU’s of capacity using electric power in its operations to help cut carbon emissions.
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 and chairman of Ports, Customs & Free Zone Corporation, said: “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."
DP World said it ended its concession agreement at the Surabaya Container Terminal in April. The new agreements confirm a long-term strategic partnership in the economic development of the country which has been growing rapidly in recent years.
Dr Alim Markus, president director and CEO of Maspion Group said: "This collaboration is a major development for the two groups, and a new step in Maspion Group’s ongoing expansion.”transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.