Two preliminary agreements between DP World and the Indonesian conglomerate Maspion Group were signed in Wednesoday to create a $ 1.2 billion container port and an industrial logistics park in East Java.
The exchange of agreements was witnessed by Sheikh Mohammed bin Zayed Al Nahyan, crown prince of Abu Dhabi and deputy supreme commander of the armed forces of the United Arab Emirates, and by Joko Widodo, president of Indonesia.
The two-term agreements aim to create an integrated container terminal and an industrial logistics park, which should play a vital role as a commercial gateway for East Java.
It includes the cooperation in the creation of the international container port Maspion in Gresik, East Java, with an investment of 1.2 billion dollars and 3 million TEU of capacity that uses electricity in its operations to help reduce carbon emissions.
The project is expected to open at the end of this year and commercial operations are scheduled for the first half of 2022.
Sultan Ahmed Bin Sulayem, president and CEO of DP World Group and president of Ports, Customs & Free Zone Corporation, said: "This partnership will be an important addition to our global portfolio and a new step in our continued expansion. It will also strengthen our constant commitment to Indonesia, one of the world's most important economies ".
DP World stated that it had concluded its concession agreement at the Surabaya container terminal in April. The new agreements confirm a long-term strategic partnership in the country's economic development that has grown rapidly in recent years.
Alim Markus, president director and CEO of Maspion Group, said: "This collaboration is an important development for the two groups and a new step in the continuous expansion of Maspion Group".