DP World and Caisse du Depot et Placement du Quebec, a global investment firm, have signed a long-term agreement with Indonesia’s leading conglomerate Maspion Group to start the construction of an international container port and industrial logistics park in Gresik.
Work on the projects is expected to begin in the third quarter of 2021, with a total investment of up to $1.2 billion, enhancing East Java’s position as a key trade gateway for Indonesia.
Under 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 involving a foreign direct investor (FDI) 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 TEU.
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 world-class trade environment for domestic and international businesses to help drive economic growth and create jobs.
Since its launch four years ago, the $8.2 billion DP World-CDPQ platform has invested in 10 port terminals globally and across various stages of the asset life cycle.
This investment will allow the partnership to pursue its objectives to further diversify its reach in terms of geography and trade lanes.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said, “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.”
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, said, “Through this partnership with Maspion, CDPQ is delighted to make its first infrastructure investment in Indonesia, a strong growth market which benefits from favourable structural trends.
“It also 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.”
Alim Markus, Chairman and CEO of Maspion Group, was also quoted, “Maspion Group is committed to support Indonesia’s sustainable economic development to be aligned with President Jokowi’s grand plan to make Indonesia the fifth largest economy in the world.
“Surabaya is an important gateway in Indonesia and the existence of this Container Port will further enhance economic development and investment opportunities in Indonesia.”
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 President Joko Widodo’s vision to accelerate economic growth through his Indonesia Golden Generation 2045 strategy.