DP World is set to commence operations at Indonesia's Belawan New Container Terminal (BNCT) after finalising an agreement with the Indonesia Investment Authority (INA) and Pelindo to manage the terminal and begin a major expansion.
In its announcement, DP World said the strategic partnership between the Indonesia Investment Authority (INA), Indonesian government-owned port operator Pelindo, and DP World would create Indonesia's "most direct link" with the Malacca Strait, one of the world's busiest shipping routes.
In the longer term, the agreement aims to increase BNCT's capacity to 1.4 million TEUs, up from 600,000 TEUs currently.
BNCT will also aim to attract more direct calls, reducing North Sumatra's reliance on regional hub ports to access regional and global markets.
The BNCT currently serves as a local hub for the neighbouring provinces in Sumatra.
Port expansion, modernisation program
DP World noted that the expansion and modernisation programme would strengthen its position as a major trade and logistics gateway in the Malacca Strait.
Alongside modernising maritime infrastructure, DP World will also work with its partners to connect other terminals and small ports on the Island of Sumatra to further realise the BNCT's role in reducing container logistics costs within Northern Sumatra.
"We are proud to help Indonesia expand the Belawan New Container Terminal and support its ambitions to develop the economy of Sumatra through infrastructure. By investing in cutting-edge sustainable technologies, world-class training and the highest standards of health and safety, we aim to eliminate inefficiency and enable the flow of trade between Indonesia and the world," said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.
Erick Thohir, Indonesia's Minister of State-Owned Enterprises, said the new container terminal at the Port of Belawan is seen to maximise exports in "new ways" and also "accelerate the economy in North Sumatra, which continues to grow."
"This is in accordance with the objectives of the Terminal port development, which will strengthen the national port industry ecosystem, as well as the competitiveness of Indonesian ports as strategic trade routes in Southeast Asia and internationally," Thohir added.
Arif Suhartono, president director of PT Pelabuhan Indonesia (Persero), said the agreement is a "significant milestone" and the deal would be a "catalyst" for the further development of the BNCT.
Ridha Wirakusumah, CEO of INA, said its investment in Belawan New Container Terminal serves as a crucial step towards positioning Indonesia as a prominent maritime axis and a key player in the global logistics industry.
"This transformational project supports Indonesia's economic growth and advances its maritime sector, becoming an important role in driving economic growth in Indonesia," Wirakusumah added.
The agreement was signed by Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, Arif Suhartono, president director of PT Pelabuhan Indonesia (Persero), and Ridha Wirakusumah, CEO of Indonesia Investment Authority.
