DP World to start expansion of Indonesian container terminal

Dubai-based terminal operator DP World is set to begin management and a major expansion of Indonesia’s Belawan New Container Terminal (BNCT).

DP World said that it finalised an agreement with the Indonesia Investment Authority and Indonesian state-run port operator Pelindo.

The partnership between the three entities will create Indonesia’s most direct link with the Malacca Strait, one of the world’s busiest shipping routes.

The agreement was signed by the CEO of DP World Ahmed Bin Sulayem, president director of PT Pelabuhan Indonesia Arif Suhartono, and the CEO of the Indonesia Investment Authority Ridha Wirakusumah.

In the longer term, the agreement aims to increase BNCT’s capacity to 1.4m teu, up from 600,000 teu currently. BNCT will also aim to attract more direct calls, reducing North Sumatra’s reliance on regional hub ports to access regional and global markets.

The BNCT currently serves as a local hub for the neighbouring provinces in Sumatra. The expansion and modernisation programme will strengthen its position as a major trade and logistics gateway in the Malacca Strait.

“We are proud to help Indonesia expand the Belawan New Container Terminal and support its ambitions to develop the economy of Sumatra through infrastructure,” Ahmed Bin Sulayem said.

DP World already signed deals with several terminals around the world this year. The company launched the development of a new edible oil terminal at the Port of Berbera in Somaliland and agreed to a long-term lease for the facility in March.

Earlier in the same month, DP World announced a $35m investment to expand and modernise its facilities located on the left bank of Brazil’s Port of Santos while in February it landed a concession to develop, operate and maintain the ‘mega-container terminal’ at Deendayal port on India’s west coast.