DP Universe and Canada’s CDPQ signal port and logistics park package in Indonesia

DP World, one of the world’s most important port operators, and Canada's Caisse de dépôt et positioning du Québec (CDPQ) signed a long-term agreement with Indonesian conglomerate Maspion Group to create a port and professional logistics park in East Java.

Work is defined to begin found in the third one fourth of 2021, with a total investment of up to $1.2 billion, DP Environment said in a affirmation on Saturday. Commercial procedures at the container terminal are expected to begin in 2023.

The project is likely to develop Gresik, East Java’s infrastructure and position it as an integral trade gateway for Southeast Asia's greatest economy. Indonesia's overall economy shrank for the very first time in two decades this past year with outcome contracting 2.07 %.

“Indonesia is rapidly growing as one of the world’s most significant economies. This job will generate modern, efficient infrastructure, in addition to an commercial zone that provides top quality logistics,” Sultan Ahmed Bin Sulayem, group chairman and leader of DP World, said.

DP World’s business design is aligned with Indonesian President Joko Widodo’s perspective to spur faster monetary growth through trade infrastructure production, more investment prospects and work creation, Mr Bin Sulayem added.

The ports and terminals investment platform was initially create by DP Environment and CDPQ, a Canadian asset management firm that oversees Quebec’s public pension fund, in 2016. Since its start, the $8.2bn DP World-CDPQ platform has invested in 10 port terminals globally.

As part of the different agreement, DP World and CDPQ’s global investment platform will establish a jv company with Maspion Group. The agreement may be the to begin its kind in the Indonesian transport sector regarding a foreign immediate investor partner and a private sector Indonesian enterprise, the statement added.

“It represents a crucial milestone for our joint program with DP Universe with the help of a first greenfield port to our portfolio of high-quality possessions that have demonstrated their resilience in the last yr despite important shifts in the global source chain landscape,” Emmanuel Jaclot, executive vice-president and brain of infrastructure in CDPQ, said.

DP Globe Maspion East Java will become the operator of the foreign container port that will have a capacity as high as three million twenty-foot comparative units (TEU).

The port operator and CDPQ may also work with Maspion Group to build up an integrated industrial and logistics park, next to the container terminal, with an initial land area of 110 hectares with scope for foreseeable future expansion.

“The existence of this container port will further enhance monetary production and investment opportunities in Indonesia,” Alim Markus, chairman and chief executive of Maspion Group, said.