A USD 1.2 billion deal between DP World and Maspion Group to build an international container port and industrial logistics park in Java, Indonesia will see the Dubai-based company increase its investment footprint in southeast Asia.
DP World and its partner Caisse de dépôt et placement du Québec (CDPQ) entered into the agreement with Indonesian conglomerate Maspion Group earlier this month with construction expected to begin later this year.
DP World said the JV was the first of its kind in Indonesia’s transport sector involving a foreign direct investor (FDI) partner and a private sector Indonesian company. The project will develop infrastructure and enable trade in rapidly growing economy of Asia.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World signed the agreement at a Dubai and Indonesian forum in the Asian country.
Bin Sulayem said the partnership with Maspion Group is an important development in UAE’s global ports and logistics network ad 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,” he said.
Under the agreement, DP World Masipon 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. 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 agreement comes on the back of news that the global logistics industry was worth EUR 5.275 trillion in 2020 and is forecasted to grow CAGR 4.7% from 2020 -2024 according Transport Intelligence (Ti).
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