INDONESIAN port operator Pelindo and a consortium of the country's sovereign wealth fund have agreed to invest in the expansion of the Belawan New Container Terminal (BNCT) in Sumatra Island, reports London's Port Technology.
The deal is part of a US$7.5 billion partnership between the Indonesia Investment Authority (INA) and UAE-based DP World.
Pelindo and the consortium will manage BNCT, aiming to transform the port into a major transportation and maritime hub in the Southeast Asia region.
Under the agreement, BNCT's capacity will double to 1.4 million TEU in the next six years.
"The UAE will become our investment and economic partner in various sectors and will continue to support the transportation, infrastructure, and investment in the future," said Indonesia vice minister Kartika Wirjoatmodjo.
Mr Wirjoatmodjo added that the deal is expected to be closed before the end of the year.
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