DP World Set to Expand Container Terminal in Indonesia

Aug 2023

DP World is gearing up to initiate activities at Indonesia’s Belawan New Container Terminal (BNCT) following the signing of an agreement with the Indonesia Investment Authority (INA) and Pelindo aimed at overseeing terminal operations and initiating a significant expansion. The collaboration between the Indonesia Investment Authority (INA), state-owned port operator Pelindo, and DP World will establish Indonesia’s most direct connection to the Malacca Strait, a crucial global maritime passage.

The agreement’s long-term objective is to elevate BNCT’s capacity to 1.4 million twenty-foot equivalent unit (TEU), a significant rise from the existing 600,000 TEU. BNCT also intends to draw more direct vessel visits, lessening North Sumatra’s dependence on nearby hub ports for accessing local and international markets. Presently, the BNCT functions as a regional central point for the adjacent provinces in Sumatra. The ongoing expansion and modernization initiative will reinforce its status as a significant hub for trade and logistics in the Malacca Strait.

In addition to upgrading maritime facilities, DP World will collaborate with its associates to establish connections between additional terminals and minor ports on Sumatra Island, thereby enhancing BNCT’s capacity to diminish container logistics expenses across Northern Sumatra. The Chairman of the Board of Directors of INA, Ridha Wirakusumah, explained that INA’s investment in the Belawan New Container Terminal is a step to position Indonesia as a maritime axis and a key player in the global logistics industry.

(Sources: The Maritime Standard; Kumparan Bisnis)

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