United Arab Emirates' (UAE) DP World has signed a contract with the Government of Indonesia and port officials to provide advice regarding the development of the Kuala Tanjung greenfield port and logistics zone, and Belawan port in North Sumatra.
The new technical assistance contract will see DP World provide its knowledge in increasing efficiencies, training and development for port employees, as well as expertise relating to the development of multi-modal transport hubs.
In addition, DP World will review operations at Belawan port and suggest ways to improve operational efficiency.
DP World will further help the Kuala Tanjung greenfield port and logistics zone to reduce costs, which is expected to have an impact on the price of goods sold in the local markets.
The newly signed deal is also expected to boost social and economic growth within the region.
DP World Group chairman and CEO Sultan Ahmed Bin Sulayem said: “This partnership highlights Indonesia’s efforts to accelerate development of its ports and trade infrastructure, something we can help with given our global experience of advising governments on connecting with international markets.
“In growing our global portfolio of 78 terminals in 40 countries, we have become a knowledge exporter with insights on how to link countries with the goods they need.
“Our existing operations at PT Terminal Petikemas Surabaya (TPS) give us an added advantage of understanding local and regional markets, and we look forward to working with the Indonesian port authorities on developing international and domestic trade.”
DP World’s TPS facility is situated on the northern shore of Indonesia’s eastern Java, located along the edge of the Madura Strait.
The terminal is jointly owned by DP World (49%) and Indonesia’s regional port authority PT Pelabuhan Indonesia III (51%), and is currently serving as the gateway to East Indonesia.