Post Date : June 20, 2022
DP World and the Saudi Ports Authority (Mawani) have penned down an agreement of 30-year to build a state-of-the-art, port-centric Logistics Park at the Jeddah Islamic Port with an investment value of more than SAR 500 million ($133.33 million).
The agreement was signed under the Patronage of the Saudi Minister of Transport and Logistic Services and Chairman of the Board of Saudi Ports Authority, His Excellency Eng. Saleh bin Nasser Al-Jasser was attended by His Excellency Omar Bin Talal Hariri, President of Mawani, His Excellency Sheikh Nahyan bin Saif Al Nahyan, UAE Ambassador to the Kingdom of Saudi Arabia, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, Mohammad Alshaikh, CEO DP World Saudi Arabia, and a delegation of senior Saudi government officials as well as representatives from DP World’s leadership team.
Under the signed agreement, the established logistics park will span over 415,000 square meters, with an in-land container depot capacity of approximately 250,000 TEU and warehousing storage space of 100,000 square meters.
Future expansions could increase the storage space to 200,000 square meters.
The new 415,000 square meters purpose-built facility is likely to bolster DP World’s footprint in the region and bring pioneering multi-modal logistics solutions to the Kingdom of Saudi Arabia.
The port-centric Logistics Park will boost Jeddah Islamic Port’s re-export activities, reducing the time and cost of logistics for importers and exporters, alike. It will provide an integrated platform of services that link port operations with last-mile activities, providing temperature-controlled storage for cargo, in addition to its processing, labeling, fulfillment, consolidation, and de-consolidation.
“We are proud and honored to contribute effectively towards the achievement of Vision 2030, which includes the development of a prosperous and sustainable maritime transportation ecosystem that supports the Kingdom’s socio-economic ambitions and consolidate its status as a global logistics hub. On this occasion, we reiterate our commitment to investing in the modernization of this facility by providing the highest standards of logistics services and technology-enabled trade solutions. We are confident that today’s milestone will contribute to increasing efficiency and productivity levels and creating new jobs.”Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World
In April 2020, DP World signed a new concession agreement with Mawani to continue operating and managing the South Container Terminal at the Jeddah Islamic Port for the next 30 years, committing to invest a total of more than SAR 3 billion ($800 million) to expand and modernize the terminal. Expected to take place over four phases, the overhaul project is set to be completed by 2024. The project will see infrastructural upgrades, including the broadening of draft depth and quay, the installation of advanced equipment and technologies, automation and digitalization programs, in addition to decarbonization initiatives.
The terminal on completion will double Jeddah Islamic Port’s container handling capacity from 2.5 million TEUs currently to 4 million TEUs and solidify Jeddah Islamic Port standing as a major trade and logistics center on the Red Sea coast.