DP World is set to commence operations at Indonesia’s Belawan New Container Terminal (BNCT), after finalising an agreement with the Indonesia Investment Authority (INA) and Pelindo to manage the terminal and begin a major expansion, according to the company's release.
The strategic partnership between the Indonesia Investment Authority (INA), Indonesian government-owned port operator 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 neighbouring provinces in Sumatra. The expansion and modernisation programme will strengthen its position as a major trade and logistics gateway in the Malacca Strait.
Alongside modernising maritime infrastructure, DP World will also work with its partners to connect other terminals and small ports on the Island of Sumatra to further realise the BNCT’s role in reducing container logistics costs within Northern Sumatra.