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Read Full Issue DP World will help expand and “modernize” Indonesia’s Belawan New Container Terminal (BNCT), as part of a consortium with Indonesian sovereign wealth fund Indonesia Investment Authority (INA), which has partnered with Indonesia state-owned port operator Pelindo, according to a Dubai Media Office statement. The agreement comes to enhance Indonesia’s maritime infrastructure and drive growth to Indonesia’s economy.
The details: The agreement will see DP World expand the terminal “in the long term” to 1.4 mn TEUs, up from 600k TEUs currently, the statement said, without disclosing the exact timeline or value of investments involved. The agreement also aims to attract more direct calls to the terminal, reducing reliance on regional hub ports and expanding access to regional and global markets, the statement said.
Boosting connectivity is also part of the agreement: DP World is also set to work with its partners to connect other terminals and small ports on Sumatra, as part of a wider goal of reducing container logistics costs within Northern Sumatra, the statement said.
What they said: BNCT “will play a key role connecting value chains to export markets,” and will “maximize exports, support downstream industries, and accelerate the economy in North Sumatra, which continues to grow,” Indonesia’s State Owned Enterprises Minister Erick Thohir said. “This agreement will be a catalyst for the further development of the BNCT as a world-class, connected, and fully integrated container terminal that will strengthen the national port industry ecosystem,” Thohir said.
About Pelindo:Pelindo is the largest port operator in Indonesia, and is aiming to grow the national maritime ecosystem through enhancing connectivity and service integration to support economic growth, according to a separate statement (pdf).
Background: This agreement comes as a continuation of a previous USD 7.5 bn agreement signed between DP World and INA to enhance Indonesia’s maritime and port infrastructure by improving their operations, and reducing logistics costs. Under the agreement, DP World and INA planned to form a consortium and working team to explore investments into the logistics infrastructure in Indonesia, including hinterland investments, inland terminals, cargo parks, feeder network systems, landside transport, and industrial zones.
