Dublin Port chief executive Enda Connellan confirmed last week that an MOU has been signed to transform the Sabang port in the Aceh province of Indonesia into a trans-shipment facility that will help it compete with similar ports in the region, particularly Singapore.

"You'll actually be looking at multiples of that investment, but we don't see any issue with the financing" said Connellan.

Sabang is located on the Malacca Strait, one of the busiest shipping lanes in the world. An estimated 35% of all the world's trade cargo passes through it. About 200 container vessels pass Sabang every day.

The port, located on Weh Island, is just 35km north of Banda Aceh, one of the worst hit areas following the devastating tsunami in 2004 that killed upwards of 230,000 people. Sabang currently consists of an 180-metre pier that will be extended to 2.5km, making it longer than the pier in Singapore, while it will also incorporate up to 25 cranes. The final value of the project, which will take five years to complete, could be much greater than the touted $100m as this is likely to cover costs for only part of the required infrastructure.

Dublin Port will lead the redevelopment, but will also retain a stake in the Indonesian facility. Connellan said that the Irish company will also be involved in the day-to-day operations. He said that formal contracts for the redevelopment are expected to be signed by the end of the year. "I'm a great believer of the notion that opportunity comes to pass, not to pause, " he said last week.

In the months after the tsunami, Dublin Port staff raised thousands of euro that was used to build a school in Aceli. Construction was managed by Dublin Port and the school is now overseen Ireland's Department of Education. Local officials, said Connellan, were impressed at the project's efficiency and negotiations then began over the Sabang port redevelopment. Indonesian officials visited Dublin in July to sign the MOU.