Saudi Arabia’s Minister of Transport and Logistic Services and Chairman of the Board of the Saudi Ports Authority (Mawani), Saleh Al-Jasser, recently witnessed the signing of privatization contracts by Mawani, in cooperation with the National Center for Privatization, for multipurpose cargo terminals at eight ports.
The contracts, based on a Build-Operate-Transfer (BOT) model for a 20-year period, were signed with national partners Saudi Global Ports (SGP) and Red Sea Gateway Terminal, with private sector investments exceeding SAR2.2 billion ($586 million).
King Fahd Industrial Port to undergo revamp
Under the new contracts, SGP will develop, manage and operate multi-purpose cargo terminals at ports on Saudi Arabia’s eastern coast, including King Abdulaziz Port in Dammam, Jubail Commercial Port, King Fahd Industrial Port in Jubail and Ras Al-Khair Port.
Meanwhile, Red Sea Gateway Terminal will develop, manage and operate multi-purpose cargo terminals at ports on the western coast, including Jeddah Islamic Port, Yanbu Commercial Port, King Fahd Industrial Port in Yanbu and Jazan Port.
The contracts for the King Fahd Industrial Port in Yanbu include enhancements such as increased container handling capacity, utilizing state-of-the-art STS and RTG cranes and modern reach stackers, trucks and trailers. Additionally, the contracts aim to reduce truck turnaround time and vessel berth time, thereby boosting overall operational efficiency at the port.
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Reinforcing Kingdom’s position as global logistics hub
During the signing ceremony, Minister Saleh Al-Jasser stressed that these successive private investments reflect the attractiveness of Saudi Arabia’s ports and the logistics sector, which is currently witnessing extensive and diverse infrastructure investments supported by the Kingdom’s leadership. He also noted the strong interest from leading international and domestic logistics companies to invest in Saudi ports.
Al-Jasser explained that Saudi Arabia’s port network has recently achieved remarkable and unprecedented progress in operational efficiency, cargo handling volumes and maritime connectivity, according to international indicators. He also noted that the transport and logistics ecosystem will continue boosting partnerships with the private sector across all regions and sectors in the Kingdom.
Furthermore, he said that the new privatization contracts are an extension of strategic partnerships established by Mawani with major national and international specialized companies to empower the maritime transport sector, support economic diversification and reinforce the Kingdom’s position as a global logistics hub, in line with the goals of the National Transport and Logistics Strategy and the Saudi Vision 2030.
