DP World (Dubai: DPW) said July 24 that it has reached agreement to create a $1.2 billion container port and industrial logistics port in East Java with the Indonesian conglomerate Maspion.
The new terminal is to be located just a few miles from a containerport DP World had operated until this spring.
The Maspion International Container Port in Gresik, East Java, will have the ability to handle 3 million TEU and will integrated with an 890 acre logistics park. Maspion began in 1967 as a manufacturer of kitchen equipment, but has diversified. Today it makes a variety of consumer and industrial products, and is involved in diverse businesses including construction and building materials, hotels, real estate, banking, energy, trade and distribution.
Construction on the new terminal is expected to begin later this year and commercial operations are expected to begin in the first half of 2022.
Gresik is just a few miles from Surabaya, where DP World ended a concession agreement in April to operate a container terminal. In 2017 DP World announced it would not renew the contract at Surabaya , saying “the operating contract renewal terms offered by the Indonesian authorities did not meet our threshold for continued investment.”
DP World, also reported container volume throughput at its terminals for the second quarter. The United Arab Emirates-based company said its terminals handled 18.32 million TEU in the second quarter of 2019, 1.6 percent more than in the second quarter of 2018. In the first half of 2019, volumes totaled 35.81 million TEU, an increase of 0.5 percent over the same period last year.
“Strong performance across Asia Pacific, Indian Subcontinent and Africa drove growth in 2Q2019, but weaker volumes in the UAE and Australia offset this trend,” the company said.
Consolidated throughput—that is, throughput from all terminals where the DP World has a control—was 10.34 million TEU in the second quarter of 2019, 10.6 percent more than in the second quarter of 2018. In the first half of 2019, consolidated volumes amounted to 19.5 million TEU, a 4.9 percent increase over the first half of 2018.