DP World has said that it has signed two preliminary agreements with Indonesia’s Maspion Group for the development of a $1.2 billion port and industrial logistics park in East Java.
The first JV of its kind in the Indonesian transportation sector, it involves a public private partnership with Indonesia’s state-owned maritime operator Pelindo lll. According to a statement from DP World, the 3.6 million sqm integrated logistics park is expected to play a vital role as a trade getaway 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 TEUs of capacity using electric power in its operations to help cut carbon emissions, the company added.
DP World added that the logistics park can provide a world class trade environment for Indonesian and international businesses to help drive economic growth and job creation.
Sultan Ahmed Bin Sulayem, chairman and CEO of DP World and chairman of Ports, Customs, and 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.”
The exchange of agreements was witnessed by HH 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.
The project is expected to break ground later this year and commercial operations are being planned for the first half of 2022.