New management of the Belawan New Container Terminal in Indonesia will boost capacity to 1.4 million 20-foot equivalent units (TEUs)
A new port, with Indonesia’s most direct link to the Malacca Strait, is about to more than double its capacity in the wake of a historic agreement reached on June 23.
Logistics giant DP World has taken over the management of Indonesia’s Belawan New Container Terminal (BNCT) as part of a strategic partnership between itself, the Indonesian Investment Authority (INA) and Indonesian government-owned port operator, Pelindo.
The port is currently catering for about 600,000 containers a year.
Under the new agreement, DP World is aiming to boost those figures to 1.4 million containers a year with a major expansion plan in place.
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.
The BNCT is currently used as a local hub for logistics operators aiming to reach into the neighbouring provinces of Sumatra.
Part of the plan is to encourage greater use of the BNCT as a port of direct delivery in a bid to reduce North Sumatra’s reliance on regional hub ports to access regional and global markets.
Geographically, the port sits near the northern entrance to the Malacca Strait, on a latitude slightly north of Kuala Lumpur on the opposite side of the Strait.
Indonesia’s Minister of State-Owned Enterprises Erick Thohir says the agreement will strengthen ports in the region.
“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 maximise 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.”
DP World CEO Sultan Ahmed Bin Sulayem says the agreement will help boost the local economy.
“We are proud to help Indonesia expand the Belawan New Container Terminal and support its ambitions to develop the economy of Sumatra through infrastructure,” Sultan Sulaymen says.
“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.”