JEDDAH: The Saudi Ports Authority, known as “Mawani”, has signed an agreement worth 500 million Saudi Riyals (SAR), or 133 million dollars (1 dollar = 0.95 euro) with DP World (a holding company owned by the government of Dubai, United Arab Emirates, and the world’s third-largest port operator, NDRL). This agreement concerns the construction of a new fully integrated smart logistics park at the Islamic Port of Jeddah.
This agreement is the fifth concluded by Mawani, which plans to transform Jeddah into a global logistics center, in line with the objectives of Saudi Arabia’s Vision 2030. This initiative aims to make the country a global shipping hub.
Other similar agreements have been signed by Mawani with a number of local and international companies, including Maersk, CMA CGM, LogiPoint and Bahri. These partnerships are part of the Kingdom’s desire to rise to the rank of world logistics center by 2030.
Regarding this agreement, the Minister of Transport and Logistics, Saleh al-Jaser, told Arab News that “the Kingdom is working to achieve its national transport and logistics strategy, which aims to transform the country into a global logistics center”. “We are working to implement many initiatives that will lead us to achieve this ambition,” he added.
Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, told Arab News“The Kingdom will thus be able to take advantage of many products which cannot reach the port today. Having a distribution center closer to the port will be more efficient and effective.”
In another of his statements, Mr. Ben Sulayem expressed pride and honor to see his company contribute effectively to the realization of the Kingdom’s Vision 2030. In particular, it provides for the creation of an efficient maritime transport ecosystem that will affirm Saudi Arabia’s role as a global logistics hub.
DP World Park
According to Mr. Ben Sulayem, “the development of the Islamic Port of Jeddah is an integral part of the Kingdom’s Vision, which wishes to transform itself into a world economic power by 2030. We are committed to strengthening the role and status of this port which is located at a strategic point on the Red Sea and which has always played a central role in the commercial exchange between East and West”.
The new intelligent logistics park will extend over an area of 415,000 m² and will accommodate, once completed, 250,000 TEU containers (unit of measurement which expresses a transport capacity as a multiple of the standard volume occupied by a container, NDRL) thanks to a warehouse whose area will exceed 100,000 m².
“The park will offer advanced and environmentally friendly electronic services. It will combine the operations of the south terminal, dedicated to containers, with those of the new logistics park. The authority thus seeks to propose integral logistics parks which will improve the competitiveness of the Islamic Port of Jeddah”, specified Omar Hariri, president of Mawani.
“The Kingdom will thus be able to take advantage of many products which today cannot reach the port. Having a distribution center closer to the port will be more efficient and effective.”
Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World.
Logistics is a sector that requires private investment.
In an exclusive interview with Arab News a few days ago, Soulaimane al-Mazroua, CEO of the National Program for Industrial Development and Logistics, said that logistics in Saudi Arabia requires private and public investment to emerge as a leading logistics center globally.
The Kingdom must modernize some of its facilities, whether airports or ports, he said in particular.
The investment required for the establishment of the logistics center in Saudi Arabia amounts to more than 500 billion SAR, or 133 billion dollars, learned Arab News from reliable sources.
Danish shipping giant Maersk signed an agreement with Mawani last year to create an integrated logistics park in the Islamic Port of Jeddah.
Under the terms of this agreement, Maersk will invest $136 million over a 25-year period to build infrastructure for storage and distribution of goods, cold storage and e-commerce.
The port will also be a platform for transhipment operations, petrochemical activities and air freight.
Covering an area of 205,000 m², the completely new project will be the first of its kind at the Islamic Port of Jeddah. It will offer an array of solutions to link and facilitate supply chains to importers and exporters in Saudi Arabia.
Maersk will also make significant investments in renewable energy to power the facility and eventually achieve zero carbon.
This project is expected to generate more than 2,500 direct and indirect jobs in Saudi Arabia.
This text is the translation of an article published on Arabnews.com.