DP World to expand capacity at Indonesia’s cargo terminal

Dubai-based DP World will start operations at Indonesia’s Belawan New Container Terminal (BNCT) after signing an agreement with the sovereign wealth fund Indonesia Investment Authority (INA) and government-owned port operator Pelindo.

The partnership will create Indonesia’s most direct link with the Malacca Strait, one of the world’s busiest shipping routes, DP World said in a statement.

In the long term, the agreement seeks to increase BNCT’s capacity to 1.4 million  twenty-foot equivalent units (TEUs), up from 600,000 TEUs.

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 terminal 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 and its partners will work to connect other terminals and small ports on the Island of Sumatra to expand BNCT’s role in reducing container logistics costs within northern Sumatra.

Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, stated that investments in sustainable technologies will eliminate inefficiency and enable trade flow between Indonesia and the world.

The master agreement for the deal was signed in August 2022.