Work on the projects is expected to begin in the third quarter of 2021, with a total investment of up to USD 1.2 billion, enhancing East Java’s position as a key trade gateway for Indonesia.

Under the agreement, a joint venture company will be established between DP World and CDPQ’s global investment platform and Maspion Group, the first of its kind in the Indonesian transportation sector involving a foreign direct investor (FDI) partner and a private sector Indonesian company.

DP World Maspion East Java will become the sole operator of a modern international container port with design capacity of up to three million twenty-foot equivalent units (TEU). DP World and CDPQ will also work with Maspion Group to develop an integrated industrial and logistics park, adjacent to the container terminal, with an initial land area of 110 hectares with scope for future expansion. The park will provide world-class trade environment for domestic and international businesses to help drive economic growth and create jobs.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “The partnership with Maspion Group is an important development in our global ports and logistics network. 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. DP World’s business model and vision are aligned with President Jokowi’s vision to spur faster economic growth through trade infrastructure development, more investment opportunities, and job creation.”

Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, explained: “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. It also represents an important milestone for our joint platform with DP World with the addition of a first greenfield port to our portfolio of high-quality assets that have demonstrated their resilience over the past year despite important shifts in the global supply chain landscape.”

Dr. Alim Markus, Chairman and CEO of Maspion Group, added: “Maspion Group is committed to support Indonesia’s sustainable economic development to be aligned with President Jokowi’s grand plan to make Indonesia the fifth largest economy in the world. Surabaya is an important gateway in Indonesia and the existence of this Container Port will further enhance economic development and investment opportunities in Indonesia.”

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The locations of the freeports are; East Midlands Airport, Felixstowe & Harwich, Humber, Liverpool City Region, Plymouth and South Devon, Solent, Teesside and Thames.

Subject to agreeing their governance arrangements and successfully completing their business cases, these freeports will begin operations from late 2021. The freeports will contain areas where businesses will benefit from more generous tax reliefs, customs benefits and wider government support, bringing investment, trade and jobs to regenerate regions across the country that need it most.

Discussions continue between the UK Government and the devolved administrations to ensure the delivery of freeports in Scotland, Wales and Northern Ireland as soon as possible.

The government will legislate for powers to create ‘tax sites’ in freeports in Great Britain; it will bring forward legislation to apply in Northern Ireland at a later date. Tax sites within freeports will need to be approved and confirmed by the government. Businesses in these tax sites will be able to benefit from a number of tax reliefs.

• An enhanced 10% rate of Structures and Buildings Allowance for constructing or renovating non-residential structures and buildings within Freeport tax sites in Great Britain, once designated. This means firms’ investments will be fully relieved after 10 years compared with the standard 33 ¹/³ years at the 3% rate available nationwide. This will be made available for corporation tax and income tax purposes. To qualify, the structure or building must be brought into use on or before 30 September 2026.
• An enhanced capital allowance of 100% for companies investing in plant and machinery for use in Freeport tax sites in Great Britain, once designated. This will apply to both main and special rate assets, allowing firms to reduce their taxable profits by the full cost of the qualifying investment in the year it is made, and will remain available until 30 September 2026.
• Full relief from Stamp Duty Land Tax on the purchase of land or property within Freeport tax sites in England, once designated. Land or property must be purchased and used for a qualifying commercial purpose. The relief will be available until 30 September 2026.
• Full Business Rates relief in Freeport tax sites in England, once designated. Relief will be available to all new businesses, and certain existing businesses where they expand, until 30 September 2026. Relief will apply for five years from the point at which each beneficiary first receives relief.
• Subject to Parliamentary process and approval, the government also intends to make an employer National Insurance contributions relief available for eligible employees in all Freeport tax sites from April 2022 or when a tax site is designated if after this date. This would be available until at least April 2026 with the intention to extend for up to a further five years to April 2031, subject to a review of the relief.

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Speaking at the announcement of the Australian carrier’s 2021 half year results to the end of December, 2020, CEO Alan Joyce said the airline had suffered an underlying loss before tax of AUS$1.03 billion, following a 75 per cent fall in revenue to AUS$6.9 billion.

He added the Group’s international division was particularly hard hit with an EBIT loss of AUS$549 million, largely thanks to the cost of carrying the assets, for instance ongoing maintenance of the grounded fleet.

However, he added the lack of passenger flights created a temporary global shortage of cargo capacity just as e-commerce has soared around the world, so giving Qantas Freight new opportunities.

Joyce said the division received the first of its three Airbus A321 freighters in October, taking its operational fleet to 19, while some of the group’s passenger A330s and Boeing 787s have been reassigned to freight duties.

He added: “The huge drop in international passenger flights has created a huge shortage in the cargo capacity that goes with them – meaning the value of freighter space has surged.

“We’ve been able to make the most of this opportunity – and it’s driven Qantas Freight to a record result. Effectively, freight has helped offset most of the costs in Qantas International and actually tipped the division into positive cash territory – but it was still loss-making overall.

“Jetstar airlines in Asia had their own Covid impacts, which couldn’t be softened to the same extent as Qantas. Those businesses are doing what they can to minimise costs while they wait for the recovery.”

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