Indonesia, DP World sign deal to double capacity at Belawan New Container Terminal

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 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. 

“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.”

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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