Indonesia, DP World Double Belawan Terminal Capacity

DP World is set to commence operations at Indonesia’s Belawan New Container Terminal (BNCT), after finalizing an agreement with the Indonesia Investment Authority (INA) and government-owned port operator Pelindo to manage the DP world container terminal and begin a major expansion.

The strategic partnership between INA, Pelindo, and DP World, will create Indonesia’s most direct link with the Malacca Strait, one of the world’s busiest shipping routes.

The agreement was signed by Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, Arif Suhartono, President Director of PT Pelabuhan Indonesia (Persero), and Ridha Wirakusumah, CEO of Indonesia Investment Authority.

In the longer term, the agreement aims to increase BNCT’s capacity to 1.4 million TEUs, up from 600,000 TEUs 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 neighboring provinces in Sumatra. The expansion and modernization program will strengthen its position as a major trade and logistics gateway in the Malacca Strait.

Alongside modernizing maritime infrastructure, DP World will also work with its partners to connect other terminals and small ports on the Island of Sumatra to further realize the BNCT’s role in reducing container logistics costs within Northern Sumatra.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “We are proud to help Indonesia expand the Belawan New Container Terminal and support its ambitions to develop the economy of Sumatra through infrastructure.

Indonesia’s sea ports are vital to the nation’s maritime connectivity, and DP World’s involvement in managing the BNCT underscores the importance of optimizing Indonesia shipping ports for efficient trade operations.

“By investing in cutting-edge sustainable technologies, world-class training and the highest standards of health and safety, we aim to eliminate inefficiency and enable the flow of trade between Indonesia and the world.”

Ridha Wirakusumah, CEO of INA, said: “INA’s investment in Belawan New Container Terminal 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.”

In addition to its direct impact on Indonesia’s maritime sector, the collaboration between INA, Pelindo, and DP World is poised to revolutionize the efficiency and competitiveness of Indonesia’s sea ports. By leveraging DP World’s expertise in managing Indonesia shipping ports and optimizing DP World container terminals, the partnership aims to streamline logistics operations and enhance the country’s global trade connectivity. This strategic initiative not only strengthens Indonesia’s position as a key player in the global logistics industry but also underscores the importance of sustainable infrastructure development in fostering economic growth. As Indonesia’s shipping ports continue to evolve into major trade hubs, the BNCT expansion project stands as a testament to the nation’s commitment to maritime excellence and innovation.

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Photo credit: DP World. From left: Arif Suhartono, President Director of PT Pelabuhan Indonesia (Persero); Erick Thohir, Minister of State-Owned Enterprises of the Republic of Indonesia; Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World; Ridha Wirakusumah, CEO of Indonesia Investment Authority.

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