DP World has been awarded a 30-year Build-Operate-Transfer (BOT) concession by the Saudi Ports Authority (Mawani), for the management and development of the Jeddah South Container Terminal at the multi-purpose Jeddah Islamic Port.
Under the agreement, DP World will invest up to $500 million to improve and modernize the Jeddah Islamic Port, including major infrastructure development to enable the Port to serve the ultra-large container carriers (ULCCs), which are considered the world’s largest mega containerships.
Developing Jeddah Islamic Port will contribute to achieving Saudi Vision 2030 as the project is considered a key milestone towards achieving the targets of The National Industrial Development and Logistics Vision Realization Program, one of the Vision’s major initiatives.
Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, said: “We look forward to leveraging our strategic partnership with Mawani and the Ministry of Transport and National Centre for Privatisation to collaboratively develop the Kingdom’s trade ecosystem while enhancing the nation’s competitiveness.
“Beyond the terminal, our ambition is to develop inland connectivity across the Arabian Peninsula between Jeddah and Jebel Ali Port in Dubai, as well as to Saudi Arabia’s cities through smart technology-led logistics, which should support further growth in this strategic hub that connects East-to-West.”
As the main trade destination for Saudi Arabia and one of the Kingdom’s major port privatization projects, the new terminal will also have an upgraded capacity of 3.6mn TEU up from 2.4mn TEU, to meet the expected growth demands of the future, and will provide 1,400 jobs.
Established in 1976, the Jeddah Islamic Port is on the red sea and the largest port in the Kingdom of Saudi Arabia with annual volumes of over 6 million TEU’s. As a crucial link on the world’s busy east-west trade route and the Kingdom’s main commercial centres, the Port currently handles approximately 60% of the country’s sea-imports and is a strategic hub that connects East-West cargo.