DP World and the Saudi Ports Authority (Mawani) signed a 30-year agreement with an investment value of more than 490 million dirhams ($133.4 million) to build a state-of-the-art, port-centric Logistics Park at the Jeddah Islamic Port.
According to a statement issued by the Government of Dubai Media Office, this move highlights the deep bonds and strengthening ties between the UAE and Saudi and underscores Dubai’s keenness to share its expertise and experience to boost regional development.
The agreement, with an investment value of more than 490 million dirhams ($133.4 million), aims to establish a 415,000 square-meter logistics park with an in-land container depot capacity of 250,000 TEUs (Twenty-foot Equivalent Units) and a warehousing storage space of 100,000 square meters. Future expansions could increase the storage space to 200,000 square meters.
The agreement was signed under the patronage of Eng. Saleh bin Nasser Al-Jasser, Saudi’s Minister of Transport and Logistic Services and Chairman of Mawani.
The signing ceremony was attended by Omar Bin Talal Hariri, President of Mawani; Sheikh Nahyan bin Saif Al Nahyan, UAE Ambassador to the Kingdom of Saudi; 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.
The purpose-built logistics park will expand DP World’s regional footprint and bring pioneering multi-modal logistics solutions to the Kingdom of Saudi Arabia.
The port-centric park will boost Jeddah Islamic Port’s re-export activities and reduce the time and cost of logistics for importers and exporters. It will provide an integrated service platform that links port operations with last-mile activities. It will also offer processing, labeling, fulfillment, consolidation, de-consolidation, and temperature-controlled storage for cargo.
Boosting productivity and creating new jobs
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “We are proud and honored to contribute effectively towards the achievement of Saudi Vision 2030. The strategic Vision 2030 framework includes the development of a thriving and sustainable maritime transportation ecosystem that supports the Kingdom’s socio-economic ambitions and consolidates its status as a global logistics hub.
“We are committed to enhancing the role and the status of the Jeddah Islamic Port, which is strategically located on the Red Sea and has historically played a pivotal role in facilitating the movement of trade between the East and the West,” he added.
For his part, Omar Hariri, President of Mawani, said: “The park will provide advanced and eco-friendly e-services by integrating the operations of the South Container Terminal with the new logistics park.
DP World signed a new concession agreement with Mawani in April 2020 to continue operating and managing the South Container Terminal at the Jeddah Islamic Port for 30 years, committing to invest more than 2.94 billion dirhams ($800 million) in expanding and modernizing the terminal.
The overhaul project will take place over four phases and be completed by 2024. It will see infrastructural upgrades, including broadening draft depth and quay, installing advanced equipment and technologies, automation and digitalization programs, and decarbonization initiatives.
Once complete, the revamped terminal will increase Jeddah Islamic Port’s container handling capacity from the current 2.5 million TEUs to 4 million TEUs and enhance Jeddah Islamic Port’s status as a major trade and logistics center on the Red Sea coast.