DP World, in partnership with the Caisse de dépôt et placement du Québec (CDPQ), has embarked on an investment in the Gresik region of Indonesia.
The Dubai Group said it had signed a long-term agreement with the Maspion Group to start building containers and an industrial logistics zone, with investments amounting to $1.2 billion.
The project is expected to start at the end of this year.
Dubai Ports said that the port would enhance East Java’s position as the main commercial gateway to Indonesia.
The signing ceremony was held in Jakarta at the Indonesia-Emirates Amazing Week 2021 Building Path Towards Economic Recovery business forum.
Under the agreement, a joint venture company will be established between DP World and CDPQ’s global investment platform and Maspion Group.
The deal is the first of its kind in the Indonesian transportation sector involving a foreign direct investor partner and a private sector Indonesian company.
The new company, dubbed “DP World Maspion East Java” will become the sole operator of a modern international container port with design capacity of up to three million twenty-foot equivalent units.
In addition, 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.
Since its launch four years ago, the US$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.
“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, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said.
“This project will create modern, efficient infrastructure, as well as an industrial zone that provides quality logistics.