DP World and Caisse de dépôt et placement du Québec (CDPQ) have signed a long-term agreement with Indonesia’s Maspion Group to start the construction of an international container port and industrial logistics park in Gresik.
Work on the projects is expected to begin in the third quarter of 2021, with a total investment of up to US$1.2 billion. Commercial operations are expected to begin in 2023.
Under the agreement, a joint venture company will be established between DP World and CDPQ’s global investment platform and Maspion Group, the first of its kind in the Indonesian transportation sector involving a foreign direct investor (FDI) partner and a private sector Indonesian company.
DP World Maspion East Java will become the sole operator of a modern international container port with design capacity of up to three million twenty-foot equivalent units (TEU).
DP World and CDPQ will also work with Maspion Group to develop an integrated industrial and logistics park, adjacent to the terminal, with an initial area of 110 hectares and scope for future expansion.
Since its launch four years ago, the US$8.2 billion DP World-CDPQ platform has invested in 10 port terminals globally and across various stages of the asset life cycle.
“Through this partnership with Maspion, CDPQ is delighted to make its first infrastructure investment in Indonesia, a strong growth market which benefits from favourable structural trends,” said Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ.
“It also represents an important milestone for our joint platform with DP World with the addition of a first greenfield port to our portfolio of high-quality assets that have demonstrated their resilience over the past year despite important shifts in the global supply chain landscape.”