ONE dips further into Southeast Asia with Indonesian terminal acquisition

In a bid to “bolster” its presence in Southeast Asia, Singapore-based shipping major Ocean Network Express (ONE) has acquired a minority stake in New Priok Container Terminal One (NPCT1) in Indonesia’s capital city of Jakarta.

As informed, the NPCT1—built in 2016 as part of efforts to expand the Tanjung Priok port—is a terminal of ‘particular significance’, serving “mature” gateway markets in Southeast Asia.

The 850-meter-long terminal reportedly has an annual capacity of 1.5 million TEU and can accommodate “advanced” mega containerships with its deep drafts, and equipment such as the Post Panamax quay and electricity-powered rubber-tired gantry (RTG) cranes.

On the other hand, according to ONE, Jakarta is its third-largest volume port in Southeast Asia. Due to this, the completion of the transaction is described as a way to ‘protect and strengthen’ the Singapore player’s presence in the regional supply chain.

Reflecting on the acquisition, Hiroki Tsujii, Global Chief Officer of ONE’s Product & Network Division, shared, “NPCT1 is an efficient and green terminal that is strategically located in a fast-developing region. A stake in this terminal ensures access to capacity in a key gateway and supports our growth ambitions.”

This latest transaction builds on an investment ONE made late last year. In November 2023, the company completed the purchase of stakes in terminals in the U.S. West Coast and Europe. Specifically, the Singaporean firm bought a 51% stake in TraPac LLC and Yusen terminals in the U.S. and a 20% stake in the Rotterdam World Gateway (RWG).

In a statement concerning this particular acquisition, Tsujii spotlighted that container terminals were “a critical link in the supply chain with the unique ability to cushion the impact of operating disruptions.”

As understood, beyond “strategic investments”, ONE has made ‘tangible’ efforts to accomplish its climate neutrality ambitions.

Starting from this year’s September, the company implemented an Emissions Trading System (ETS) surcharge as part of its response to the European Union’s (EU) inclusion of the maritime industry in its emissions trading framework.

In mid-October, ONE announced it had achieved a 62% reduction in Scope 1 emissions intensity in FY2023, in comparison to a 2008 base year.

As explained in its 2024 Sustainability Report, Ocean Network Express anticipates reaching its goal of slashing 70% of emissions by 2030.