DP World, Maspion sign partnership.
It is the first joint venture of its kind in the Indonesian transportation sector involving a private sector partnership between an FDI partner and a private sector Indonesian company in Maspion, within the context of co-operation in maritime services with the state-owned maritime services operator Pelindo III.
The exchange of agreements was witnessed by HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces, and Joko Widodo, President of Indonesia.
Also present at the signing ceremony were the Indonesian Minister of Transportation, Budi Karya Sumadi, and Minister of State-Owned Enterprises Rini Soewarno.
Two term sheet agreements aim to create a modern, integrated container terminal and industrial logistics park, expected to play a vital role as a trade gateway for Eastern Java, said the statement from DP World.
It includes co-operation in setting up Maspion International Container Port in Gresik, East Java, with an investment of $1.2 billion and 3 million TEUs of capacity using electric power in its operations to help cut carbon emissions.
An integrated 360 hectare industrial and logistics park could also provide a world class trade environment for Indonesian and international businesses to help drive economic growth and job creation.
The project is expected to break ground later this year and commercial operations are being planned for the first half of 2022. The vision is to support East Java's infrastructure as part of Widodo's programme to accelerate economic growth.
Bin Sulayem said: "This partnership will be a major addition to our global portfolio and a new step in our ongoing expansion. It will also enhance our continuing commitment to Indonesia, one of the most important world economies."
"Our business model and vision are aligned with President Jokowi's commitment to continue his infrastructure focus and to make sure it is interconnected," stated the top official.
"We believe it will further consolidate the excellent relations between the UAE, the Indonesian government and Pelindo 3 and take DP World's presence in the country to a new level," he added.
Dr Alim Markus, the president director and CEO of Maspion Group, said: "This collaboration is a major development for the two groups, and a new step in Maspion Group's ongoing expansion."
DP World ended its concession agreement with Pelindo 3 at the Surabaya Container Terminal in April 2019. The new agreements confirm a long-term strategic partnership in the economic development of the country which has been growing rapidly in recent years.
Indonesia has the fastest rate of growth in electronic retail in South East Asia.
Gross volume growth up 1.6pc in Q2
Meanwhile, DP World, had handled 35.8 million TEU (Twenty-Foot Equivalent Units) across its global portfolio of container terminals in the first half of 2019, with gross container volumes growing by 0.5 per cent year-on-year on a reported basis and 0.5 per cent on a like-for-like basis.
A major player in region, the Dubai-based DP World operates multiple yet related businesses - from marine and inland terminals, maritime services, logistics and ancillary services, to technology-driven trade solutions.
It boasts a portfolio of over 150 operations in more than 45 countries across six continents, with a significant presence in both high-growth and mature markets.
Announcing the results, the Dubai group said its strong performance across Asia Pacific, Indian Subcontinent and Africa drove growth in the second quarter, but weaker volumes in the UAE and Australia offset this trend.
At a consolidated level, the DP World terminals handled 19.5 million TEU during the six-month period. The consolidated volumes in Q2 grew by 10.6 per cent on a reported basis but down 0.6 per cent on a like-for-like basis.
The strong reported growth in Americas and Australia region is due to the consolidation of Australia and acquisition of Pulogsa which consists of two terminals in Chile, it added.
Bin Sulayem, said: "In line with our expectations, we have delivered a broadly stable volume performance in the first half of 2019. Encouragingly, despite uncertainty from the trade war, we have seen robust volumes in Asia Pacific and Indian Subcontinent, while growth in Africa remains strong."
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