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DP World to quit PT Terminal Petikemas Surabaya in 2019
DP World has decided not to renew its operating contract for Indonesia's PT Terminal Petikemas Surabaya (TPS) after it expires at the end of 2019.
"It is unfortunate that the significant positive contributions made by global terminal operators in Indonesia have not been fully recognised, despite our successful track record," DP World Group chairman, Sultan Ahmed Bin Sulayem, said in an e-mailed statement, reported The National of Abu Dhabi.
"We are therefore disappointed that the operating contract renewal terms offered by the Indonesian authorities did not meet our threshold for continued investment. Adhering to strict financial discipline has been crucial to the growth of DP World and on that basis we are not able to renew the agreement beyond 2019."
DP World is a 49 per cent shareholder in TPS, which represents a gross capacity of 2.1 million TEU out of 85 million TEU for the group. The company acquired its interest in TPS when it purchased international ports operator P&O in 2006.
"Over the last 20 years, Surabaya has benefitted from DP World's state-of-the-art, productivity-enhancing systems, training and development programmes, as well as the company's security, safety and environmental best practices, and we are proud of our success there. We have invested significantly in the terminal infrastructure," added Mr Bin Sulayem.
In July DP World signed an agreement in Indonesia to advise on the development of two ports. The port operator signed a technical assistance contract with the Indonesian government to help develop the Kuala Tanjung greenfield port and logistics zone as well as the Belawan port, located in north Sumatra.
"It is unfortunate that the significant positive contributions made by global terminal operators in Indonesia have not been fully recognised, despite our successful track record," DP World Group chairman, Sultan Ahmed Bin Sulayem, said in an e-mailed statement, reported The National of Abu Dhabi.
"We are therefore disappointed that the operating contract renewal terms offered by the Indonesian authorities did not meet our threshold for continued investment. Adhering to strict financial discipline has been crucial to the growth of DP World and on that basis we are not able to renew the agreement beyond 2019."
DP World is a 49 per cent shareholder in TPS, which represents a gross capacity of 2.1 million TEU out of 85 million TEU for the group. The company acquired its interest in TPS when it purchased international ports operator P&O in 2006.
"Over the last 20 years, Surabaya has benefitted from DP World's state-of-the-art, productivity-enhancing systems, training and development programmes, as well as the company's security, safety and environmental best practices, and we are proud of our success there. We have invested significantly in the terminal infrastructure," added Mr Bin Sulayem.
In July DP World signed an agreement in Indonesia to advise on the development of two ports. The port operator signed a technical assistance contract with the Indonesian government to help develop the Kuala Tanjung greenfield port and logistics zone as well as the Belawan port, located in north Sumatra.
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