The Emirati global logistics company DP World announced it will begin operations to expand capacity at Indonesia’s Belawan New Container Terminal (BNCT).

This follows a signed agreement with the Indonesia Investment Authority (INA) and Indonesian-based port operator Pelindo.

The partnership oversees the expansion and modernisation of the BNCT, with the aim of strengthening its position as a major trade and logistics gateway on the Malacca Strait.

DP World stated the “strategic” partnership is set to create what it described as the country’s “most direct link with the Malacca Strait,” which according to IOP science is one of the main routes of world trade.

INA CEO Ridha Wirakusumah emphasised further how the partnership plays a part in identifying Indonesia as a strong component of the maritime industry: “INA’s investment in BNCT 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.”

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By GlobalData

In addition to modernising maritime facilities, DP World will collaborate with its partners to connect additional terminals and minor ports on the island of Sumatra.

The agreement’s goals include boosting BNCT’s capacity to 1.4 million TEUs as well as reducing North Sumatra’s dependency on regional hub ports to reach regional and worldwide markets.

DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem highlighted the company’s objectives of expanding the Belawan terminal: “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.”