DP World to Expand Indonesian Container Terminal

28 June 2023.

Dubai-based terminal operator DP World is set to begin management and a major expansion 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.

The strategic partnership between the three entities will create Indonesia’s most direct link with the Malacca Strait, one of the world’s busiest shipping routes.

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.

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Present to witness the signing of the Shareholders Agreement was Minister of State-Owned Enterprises, Mr. Erick Thohir. The agreement was signed by the CEO of DP World Ahmed Bin Sulayem, president director of PT Pelabuhan Indonesia Arif Suhartono, and the CEO of the Indonesia Investment Authority Ridha Wirakusumah.

In the longer term, the agreement aims to increase BNCT’s capacity to 1.4 million TEUs (Twenty-foot Equivalent Units), 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.

With a focus on optimizing supply chain networks, the investment in BNCT is poised to unlock the full potential of this critical infrastructure asset. As a result, the terminal is set to play an increasingly important role in driving economic growth in Indonesia, particularly in the thriving Northern Sumatra region, and positioning the country as a key player in the global logistics industry.

Minister of State-Owned Enterprises, Erick Thohir, said, “As directed by President Joko Widodo, there is always strategic value for equity and acceleration of economic growth in the regions and nationally through port development, including this new container terminal at the Port of Belawan which is believed to support downstream 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.”

Read our related article: Port Service Rights Granted at Balikpapan Terminal

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