Dubai-based multinational logistics company, DP World, alongside its partner Caisse de depot et placement du Quebec (CDPQ), a global investment group, signed a long-term agreement with Indonesia’s conglomerate Maspion Group to construct an international container port and industrial logistics park in Gresik.
The signing ceremony was held in the presence of Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure, and Luhut Binsar Pandjaitan, Coordinating Minister for Maritime and Investment Affairs of the Republic of Indonesia, at the ”Indonesia-Emirates Amazing Week 2021”. The signatories of the formal agreements were Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, and Dr. Alim Markus, Chairman and CEO of Maspion Group.
As part of the agreement, a joint venture company will be established between DP World and CDPQ’s global investment platform and Maspion Group, the first of its kind in the Indonesian transportation sector including a foreign direct investor (FDI) partner and a private sector Indonesian company.
The work of the projects is expected to commence in the third quarter of 2021, with a total investment of up to $1.2 billion, improving East Java’s status as a major trade gateway for Indonesia.
DP World and CDPQ will also corporate with Maspion Group to create an integrated industrial and logistics park, nearby the Container Terminal, with an initial land area of 110 hectares with scope for future expansion. The park will give a world-class trade ecosystem for domestic and international businesses to help drive economic growth.
Since its launch, the DP World-CDPQ platform, worth $8.2 billion, has invested in 10 port terminals globally and over various stages of the asset life cycle. This investment will enable the partnership to pursue its goals to further diversify its reach in terms of geography and trade lanes.
“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. DP World’s business model and vision are aligned with President Jokowi’s vision to spur faster economic growth through trade infrastructure development, more investment opportunities, and job creation.”
Commenting on the agreement, Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, said, “The investment represents an important milestone for our joint platform with DP World with the addition of a first greenfield port to our portfolio of high-quality assets that have demonstrated their resilience over the past year despite important shifts in the global supply chain landscape.”
“Maspion Group is committed to supporting Indonesia’s sustainable economic development to be aligned with President Jokowi’s grand plan to make Indonesia the fifth largest economy in the world,” Dr. Alim Markus, Chairman and CEO of Maspion Group, stated.
The commercial operations of the container terminal is expected to begin in 2023. The project will develop East Java’s infrastructure as part of President Joko Widodo’s vision to accelerate economic growth through his Indonesia Golden Generation 2045 strategy.