Indonesia, DP World funds Malacca Straits’ new container terminal
Indonesian port operator Pelindo and a consortium of the country’s
sovereign wealth fund have entered an agreement to invest in the expansion of
the Belawan New Container Terminal (BNCT) in Sumatra Island.
The deal is part of a $7.5 billion partnership between the Indonesia
Investment Authority (INA) and UAE-based DP World, according to a joint
statement by Pelindo and the INA.
Financial details of the transaction have not yet been disclosed.
Pelindo and the consortium will manage BNCT with the aim to transform the
port into a major transportation and maritime hub in the Southeast Asia region –
by increasing terminal capacity, direct calls, and connectivity with other
ports.
Under the agreement, BNCT’s capacity will more than double to 1.4 million
TEU in the next six years, which would strengthen Belawan’s position in the
Malacca Straits, the firms said.
“The UAE will become our investment and economic partner in various sectors
and will continue to support the transportation, infrastructure and investment
in the future,” said Kartika Wirjoatmodjo, Indonesia’s Vice Minister for
state-owned enterprises.
Wirjoatmodjo added that the deal is expected to be closed before the end of
the year.
Belawan is currently a feeder for other large ports, including the Port of
Singapore, Tanjung Pelepas and Port Klang in Malaysia.
