Dubai Port World, a port operator company from the United Arab Emirates (UAE) is collaborating with PT Pelindo (Persero) in the field of investment and operation of a new container terminal in Belawan New Container Terminal (BNCT), North Sumatra worth US$ 400 million.
Established in 1972, Dubai Port World is a state-owned company in the sector of port & terminals, logistics, marine services, and technology owned by the United Arab Emirates royal family.
The company provides smart logistics solutions enabling the flow of trade across the globe with operations in over 69 countries across every continent.
Operating investment of US$ 400 million
The investment collaboration between both companies was signed by Arif Suhartono, President Director of Pelindo, Ridha Wirakusumah, President Director of the Indonesia Investment Authority (INA), and Sultan Ahmed Bin Sulayem CEO of DP World.
“We are proud to help Indonesia expand the Belawan New Container Terminal and support its ambitions to develop the economy of Sumatra,” said Sulayem.
“INA’s investment in BNCT serves as a crucial step towards positioning Indonesia as a prominent maritime axis, and 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,” said Wirakusumah.
Wirakusumah said, this collaboration aims to operate BNCT container terminal for 30 years plus 20 years with a planned developed capacity of up to 1.4 million Twenty-foot Equivalent Units (TEUs).
“The investment disbursed reached around US$ 400 million [IDR 6 trillion],” Wirakusumah said.
BNCT to bring major expansion
DP World will commence operations at Indonesia’s BNCT to manage the terminal and begin a major expansion in one of the world’s busiest shipping routes.
BNCT serves as a local hub for Sumatra, and the expansion and modernization of its major port will strengthen its position as a major trade and logistics gateway in the Malacca Strait.
DP World will also connect other terminals and small ports on the island to further reduce container logistics costs within Northern Sumatra.
The presence of DP World will attract international cargo directly to BNCT without stopping to neighboring countries, and reduce North Sumatra’s reliance on regional hub ports to access regional and global markets.
Cooperation to strengthen logistics and infrastructure
The Ministry of State-Owned Enterprises (BUMN) applauds the investment by DP World because the collaboration aims to strengthen the logistics ecosystem in Indonesia. Currently, logistics is one of the major problems in the Indonesian economy.
“It is important for the government and BUMN to continue to encourage and collaborate in developing ecosystems from ports, airports to trains,” said Erick Thohir, Minister of BUMN, on June 25, 2023.
Meanwhile, Pelindo is hoping for a technology transfer from DP World because technology is a crucial factor in the development of port infrastructure, as well as attracting traffic from abroad.
“We aim to eliminate inefficiency and enable the flow of trade between Indonesia and the world,” said Sulayem.
Wirakusumah responded that this collaboration could enable shipping directly to BNCT Indonesia, instead of neighboring countries.
Meanwhile, Thohir hopes that this collaboration will soon be developed because it is estimated that between three and six months the project can be realized.
“The momentum for accelerating the economy must occur. The development of this collaboration will take about six months, or around three months,” said Thohir.
