Post Date : December 27, 2019
Saudi Ports Authority “Mawani”, as per the BOT scheme (Build, Operate and Transfer) has signed two concession contracts with global ports operator and developer DP World, and the leading local and regional ports operation and development firm Red Sea Gateway Terminal for the development of container terminals at Jeddah Islamic Port.
The signing of the new concession marks as a major step for Mawani and will help it increase the container terminal capacity to 12 million containers annually, from the present 7.6 million containers (by 60%).
Further, this will reflect positively on achieving the objectives set for the ports sector and enhancing its performance, both in terms of quality and quantity.
“The concession contracts, the largest in the history of Saudi ports, are currently considered one of the biggest privatization deals with a long duration of 30 years and investments amounting to 9 billion SAR.”Eng. Saad Bin Abdulaziz Al-Khalb, President, Saudi Ports Authority(MAWANI)
Further, Mr Al-Khalb adds “These contracts will contribute to modernizing the infrastructure of the northern and southern container terminals at Jeddah Islamic Port. The works will include the development of pavements which will amplify the port’s pivotal position on the Red Sea Coast, thus enhancing Jeddah Islamic Port’s leading role in some of the giga-projects of Saudi Vision 2030- which include Neom, Red Sea Development and Amaala. The pavement development will also support domestic trade and logistics services for the supply chain within the Kingdom.”
He pointed out that Mawani targets strengthening Public-Private Partnership (PPP), in line with Saudi Vision 2030, and aims to increase private sector investment in long-term contracts in order to advance operational efficiency of infrastructure and optimize the benefit from investments. It also plans to increase the share of the private sector in Saudi ports to 70% by 2020.
“Jeddah Islamic Port’s strategic location and its world-class standing indicates that the agreement will support the port’s position by underpinning trade and logistics networks in the Red Sea and the Middle East, and it will transform container terminal operations through innovations based on the latest technological advancements. This will make the port a logistical platform that provides services to more than 500 million consumers in the region.”– said Sultan Ahmed Bin Sulayem, Chairman, DP World
Jeddah Islamic Port- one of the busiest maritime navigation sites, handles more than 65% of goods imported through Saudi ports.
Located across the trade lifeline connecting the Far East with Europe, Jeddah Islamic Port ranks first among Red Sea ports. It stretches over an area of 12.5 sq km and comprises 63 pavements with a capacity of up to 130 million tonnes annually.