DP World to Double Capacity at Major Indonesian 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 Pelindo to manage the terminal and begin a major expansion. 

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. 

Sultan Ahmed Bin Sulayem 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.”

In the longer term, the agreement aims to increase BNCT’s capacity to 1.4 million TEU, up from 600,000 TEU 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. 

Minister of State-Owned Enterprises, Erick Thohir, said: “As directed by President Joko Widodo, there is always strategic value for equity and acceleration of economic growth in the regions and nationally through port development, including this new container terminal at the Port of Belawan which is believed to support downstream to maximize exports in new ways and also accelerate the economy in North Sumatra which continues to grow.

"This is in accordance with the objectives of the Terminal port development which will strengthen the national port industry ecosystem, as well as the competitiveness of Indonesian ports as strategic trade routes in Southeast Asia and internationally.” 

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