We chose topic DP World contract with Indonesia's PT Terminal Petikemas Surabaya not to be

renewed in 2019 because of some reason there are :

1. Hot news about maritime issue, moreover one of biggest port in Indonesia, Tanjung Perak,
Surabaya
2. We know the profile of, PELINDO III, and Port of Tanjung Perak Surabaya, Dubai Port World
3. We know about advantage and disadvantage because of Dubai Port Maturity
4. We know about the chances for us to get job or internship
5. We will know whats step that we will take in the future/suggestion

Profile Tanjung Perak, Surabaya

Port of Tanjung Perak is the 2nd busiest sea port in Indonesia, located at Surabaya, East Java. It is the
main port for the eastern part of the island of Java. Size of harbor 1574 hectare. The port is accessed
from the North through the Madura Strait, connecting between East Java and Madura Island. Because
of its strategic position and the existence of surrounding advantageous hinterlands, the port
constitutes the center of inter island shipping for Eastern Indonesia. The port has 6 main terminals,
multi-purpose terminals for conventional cargo handling, passenger terminal, RoRo and an
international container terminal. Tugging, pilot, bunker, storage and shipyard services are provided.
Passenger Terminal of the port is known as Gapura Surya Nusantara. Since 2015 activities of the port
is supported by Teluk Lamong Port Terminal, which is one of the most sophisticated port terminals in
the world where the entire operating system is automated. Tanjung Perak Port is also equipped with
dock facilities that can serve cruises both from domestic and abroad. Port of tanjung perak as a
central office of PELINDO III, Ltd.
Profile PELINDO III
PT. Pelabuhan Indonesia III (Persero) also
known as Pelindo 3 is a state-owned
enterprise (BUMN) that runs in the port
services business as a port operator. The
company was established with the
Government Regulation No. 58 Year 1991
(Peraturan Pemerintah Republik Indonesia
No. 58 Tahun 1991) on the Diversion of Public
Port Company III to Persero. The Regulation
was signed by the 2nd President of the
Republic of Indonesia Soeharto on October
19, 1991As a port operator, Pelindo 3 manages 43 ports with 16 branches throughout 7 provinces in
Indonesia, including Central Java, East Java, Bali, West Nusa Tenggara, East Nusa Tenggara, Central
Kalimantan, and South Kalimantan. Pelindo 3 has a strong commitment to reach the companys
visions and missions. Therefore, each action taken always refers to a Good Corporate Governance.
The company also implements a Code of Conduct as a reference for everyone at Pelindo 3, from the
Commissionaires, Directors, to general staff in their way to behave and show a good ethic in a
business process and to the people outside of their work space. Currently, Pelindo 3 has become one
of Indonesias largest state-owned enterprises with constantly growing assets year after year. Pelindo
3 is also one of the state-owned enterprises that have made it through to the global market. This
proves that Pelindo 3 has a great potential to be a world-class company.

Profile Dubai Port World :

DP World is a leading enabler of global

trade and an integral part of the supply
chain. They operate multiple yet
related businesses from marine and
inland terminals, maritime services,
logistics and ancillary services to
technology-driven trade solutions. They
have a portfolio of 78 operating marine
and inland terminals supported by over
50 related businesses in 40 countries
across six continents with a significant
presence in both high-growth and
mature markets. They to be essential to the bright future of global trade, ensuring everything they do
has a long-lasting positive impact on economies and society. their dedicated team of over 36,500
employees from 103 countries cultivates long-standing relationships with governments, shipping
lines, importers and exporters, communities, and many other important constituents of the global
supply chain, to add value and provide quality services today and tomorrow. Container handling is the
companys core business and generates more than three quarters of its revenue. In 2016, DP World
handled around 64 million TEU (twenty-foot equivalent units) across our portfolio. With its committed
pipeline of developments and expansions, the current gross capacity of 84.6 million TEU is expected
to rise to more than 100 million TEU by 2020, in line with market demand. By thinking ahead,
foreseeing change and innovating they aim to create the most productive, efficient and safe trade
solutions globally.

Topic :

DP World contract with Indonesia's PT Terminal Petikemas Surabaya not to be renewed in 2019

The operating contract of DP World, the world's fourth largest ports operator, for PT Terminal
Petikemas Surabaya (TPS) in Indonesia that will expire at the end of the agreement in 2019, will not
be renewed, the company's chairman 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," Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO said in
an e-mailed statement.

"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. The transfer of operations will be in accordance to the terms and
conditions of the contract."

DP World is a 49 per cent shareholder in TPS, which represents a gross capacity of 2.1 million
TEUs (twenty-foot containers) out of 85 million TEUs for the Group. The company acquired its interest
in TPS when it acquired international ports operator P&O in 2006. There will be no material financial
impact on the Group as a consequence of the TPS contract lapsing, the company said. When
investing in trade infrastructure and services, our goal is to serve our global customers while making a
positive economic impact in the countries in which we work and delivering returns to our
shareholders," said Mr Bin Sulayem.

"We remain committed to investing in Asia and all geographies that have an appetite for
foreign direct investment. Mr Bin Sulayem was not reachable by phone. 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. DP World,
alongside other global terminal operators, has built world class port infrastructure in Indonesia that
serves the needs of shipping lines, manufacturers, traders and consumers in the region," said Mr Bin
Sulayem. "Over the last 20 years, Surabaya has benefited from DP Worlds state-of-the-art,
productivity-enhancing systems, training and development programmes, as well as the companys
security, safety and environmental best practices, and we are proud of our success there. We have
invested significantly in the terminal infrastructure, which has created jobs and contributed to the
growth of both the port and the region.
 DP World's gross container volume advanced 10.7 per cent on a reported basis in the second
quarter this year to 17,596 TEU on the back of a rise in global trade. The biggest growth in volumes
came from the Americas and Australia regions, which together registered a 17.1 per cent jump
followed by Europe, Middle East and Africa with 12.7 per cent, and a 7.3 per cent rise by Asia Pacific &
India Subcontinent.

Advantage of renewed contract to Dubai Port World :

1. Port Terminal of Surabaya to be Independent
2. Local people can improve the ability by their self
3. PELINDO III can handle the resource as a state owened enterprise
4. Increasing local economic and infrastructure
5. There is no paid of invesment to another company, so the country saving can be paid for
developing of port
6. Increase indonesias devisa
7. Increase technology factor about Port Terminal
Disadvantage of renewed contract to Dubai Port World :
1. Uncertainty, port terminal surabaya will get better or not
2. More time to restart the sistem of manage the Port Terminal of surabaya
3. There is no ensure our human resoure can handle own port terminal
4. Provide more capital to buy the tools of port terminal

Conclusion :
There are many advantage and disadvantage if Indonesia still renewed contract to Dubai Port
World. We think that Pelindo III must be independent to carry on Port Terminal. Its more better if get
excelent Human Resource and Tools Resource. So, PELINDO III needs more time and spent so much
money to upgrade their terminals tools. But its better than Tanjung Perak Port Terminal carry on by
foreign company.
As we know after PELINDO III not to be renewed with Dubai Port World it will increase our
oppurtunity to get job or Internship there. Because PELINDO III as state owned Enterprise will open
career for us. So, if we interested to work in PELINDO III at Terminal Port Division there are big
oppurtinity there we try and study hard to get it.