DP World to Quit Operating Deal for Indonesia’s TPS
- Business & Finance
UAE’s port developer DP World has decided not to renew its operating contract for PT Terminal Petikemas Surabaya (TPS) in Indonesia at the end of the agreement in 2019.
DP World is a 49% shareholder in TPS, which represents a gross capacity of 2.1 million TEUs out of 85 million TEUs for the group. The company said that there would be no material financial impact on the group as a consequence of this action.
“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,” Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, said.
“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. We are therefore disappointed that the operating contract renewal terms offered by the Indonesian authorities did not meet our threshold for continued investment,” Bin Sulayem added.
“Adhering to strict financial discipline has been crucial to the growth of DP World” and on that basis the company said it is not able to renew the agreement beyond 2019.
The transfer of operations will be in accordance to the terms and conditions of the contract, DP World informed.