DP World + Maspion start construction on delayed East Java container terminal: DP World and Indonesian conglomerate Maspion Group have kicked off construction on a new container terminal in Gresik, East Java in a groundbreaking ceremony, according to a press release. The facility is one of several DP World is building and operating as part of a strategy to expand its global ports and logistics network.

Background: DP World and Canadian investor Caisse de dépôt et placement du Québec (CDPQ) inked a long-term agreement in mid-2021 with Maspion Group that was meant to pave the way for construction work on the terminal to begin in 3Q 2021, with initial plans to start operations early 2023, Wam reported. Investments for the project at time were estimated at USD 1.2 bn.

What happened to CDPQ? The original JV was inked between DP World, CDPQ, and Maspion, though the new statement does not mention CDPQ’s role in the JV.

Details: The terminal will have a capacity of up to 3 mn twenty-foot equivalent units (TEU), and will be operated by Maspion and DP World’s joint venture, dubbed DP World Maspion East Java, the statement adds. The JV has plans to also develop a 110 hectare integrated industrial and logistics park, with room for further expansion, in close proximity to the terminal with the aim of providing end-to-end supply chain solutions.

What they said: “Our partnership with Maspion Group to build new infrastructure in Gresik will strengthen East Java’s position as a key trade and logistics gateway,” Group Chairman and CEO of DP World Sultan Ahmed bin Sulayem said in the press release. “It will also serve as a cornerstone in our strategy to expand our global ports and logistics network to offer our customers end-to-end solutions and boost supply chain resilience,” he said.

DP World has been on an expansion spree in Asia: The logistics outfit recently signed a concession agreement valued at USD 510 mn for a new mega container terminal at Kandla in India, and later said it plans to invest INR 2.15 bn in the logistics and warehousing sector in India’s Telangana state. It will also 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. The company also has a USD 7.5 bn agreement with Indonesia’s sovereign wealth fund to develop the country’s seaports over a period of 30 years.

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