DP World to invest up to $7.5 billion in Indonesian port facilities

Dubai-based port operator DP World has signed a strategic alliance agreement with the Indonesia Investment Authority (INA) to enhance Indonesia’s maritime and port sector within the global manufacturing ecosystem.

As disclosed, the partnership was formed to improve the operation of ports, reduce logistics costs, and advance national competitiveness.

The partners will form a consortium and working team to explore investments into the logistics infrastructure in Indonesia, including hinterland investments, inland terminals, cargo parks, feeder network systems, landside transport, and industrial zones. They also plan to explore collaboration with the Indonesia Port Corporations (Pelindo).

What is more, DP World will seek to leverage its joint investment platform with Caisse de dépôt et placement du Québec (CDPQ) which since its launch in 2016 has invested in 12 port terminals globally across various stages of the asset lifecycle. With this in mind, the economic value of this partnership could reach up to $7.5 billion over the longterm, the partners revealed.

“DP World recognises the vast potential of Indonesia as one of the fastest-growing economies in the world, as well as projects undertaken by the government to improve port facilities. Through our partnership with INA, we are committed to supporting national initiatives that create value and bring in expertise to modernise the Indonesian maritime infrastructure,” DP World Group Chairman and CEO H. E. Sultan Ahmed Bin Sulayem said.

Under the agreement, DP World will provide services regarding operations optimization, service innovation, disruptive technologies, and safety principles. This will be carried out through the use of fully automated stacking to eliminate inefficiency,hyperloop systems for fast cargo delivery, and 100% electric sustainable means of cargo transport, the company stated.

On the other hand, INA’s Chief Executive Officer, Ridha Wirakusumah, said that this strategic partnership with DP World aligns with INA’s mission to optimise investment in Indonesia’s infrastructure and resources to deliver long-term economic development.

INA’s investment currently focuses on several key sectors, such as airports, ports, toll roads, industrial estates, digital infrastructure, healthcare services, and renewable energy.

“Indonesia’s maritime and port sector is key to supporting trade and consumption across the archipelago, and this collaboration with DP World will enable us to resolve issues of high logistics costs and port inefficiencies,” Wirakusumah concluded.

Recently, the port operator launched a new digital logistics solution CARGOES Logistics to address complexities and inefficiencies that exist in global supply chains.