UAE - Mubasher: DP World and Caisse de dépôt et placement du Québec (CDPQ) have inked a long-term agreement with Indonesia's Maspion Group to construct an international container port and industrial logistics park in Gresik in East Java Province of Indonesia.

With a total investment of up to $1.2 billion, the construction works of the project are forecast to start in the third quarter (Q3) of 2021, according to a press release on Sunday.

The commercial operations of the container terminal are forecast to begin in 2023. 

Under the agreement, a joint venture will be formed between DP World and CDPQ's global investment platform and Maspion Group.

DP World Maspion East Java is the first of its kind in the Indonesian transportation sector comprising a foreign direct investor (FDI) partner and a private sector Indonesian company.

Meanwhile, the joint venture will become the sole operator of a modern international container port with a design capacity of up to three million twenty-foot equivalent units (TEU).

Commenting on the agreement, the Group Chairman and CEO of DP World, Sultan Ahmed bin Sulayem, said: "Indonesia is rapidly developing as one of the world's most important economies. This project will create modern, efficient infrastructure, as well as an industrial zone that provides quality logistics."

The Executive Vice-President and Head of Infrastructure at CDPQ, Emmanuel Jaclot, remarked: "Through this partnership with Maspion, CDPQ is delighted to make its first infrastructure investment in Indonesia, a strong growth market which benefits from favourable structural trends."