DP World begins expansion of Indonesia container terminal

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

DP World announced that it has reached an agreement with the Indonesia Investment Authority and the Indonesian state port operator Pelindo.

The partnership between the three companies will create Indonesia’s most direct connection to the Malacca Straits, one of the busiest shipping routes in the world.

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

In the longer term, the agreement aims to increase BNCT’s capacity from the current 600,000 TEU to 1.4 million TEU. BNCT will also aim to attract more direct calls, thereby reducing North Sumatra’s dependence on regional hub ports for access to regional and global markets.

The BNCT currently serves as a local hub for the neighboring provinces of Sumatra. The expansion and modernization program will strengthen its position as a major trade and logistics hub in the Malacca Straits.

“We are proud to support Indonesia in developing the new Belawan container terminal and supporting its ambitions to develop Sumatra’s economy through infrastructure,” said Ahmed Bin Sulayem.

DP World has already signed contracts with several terminals around the world this year. The company began development of a new cooking oil terminal at the port of Berbera in Somaliland and agreed to a long-term lease for the facility in March.

Earlier the same month, DP World announced a $35 million investment to expand and modernize its facilities on the left bank of Brazil’s port of Santos, while in February the company was awarded a concession to develop, operate and maintain the ” Mega Container Terminals” was given Deendayal Port on the west coast of India.

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