Maersk Saudi Arabia has signed an agreement with the Saudi Ports Authority (MAWANI) to invest $136 million to set up an Integrated Logistics Park at the Jeddah Islamic Port in Saudi Arabia.
The Greenfield project will be spread over an area of 205,000m2 and will be the first of its kind at the port, offering a range of solutions with an aim to connect and simplify the supply chains of importers and exporters in the Kingdom. The investment will be over a period of 25 years.
Maersk will also be investing heavily in renewable energy to power this facility and aim to eventually achieve carbon neutrality. Overall the project is set to create more than 2,500 direct and indirect jobs in Saudi Arabia.
“We are building an innovative, digital, and technologically-advanced logistics infrastructure on the foundations of our strong network of global shipping and logistics & services to create value for our customers in the region,” said Richard Morgan, Managing Director of Maersk West & Central Asia.
“Our ambition is not only to connect and simplify our customer’s supply chains but also be a catalyst in the growth of trade and economies through our customer-centric solutions.”
Omar bin Talal Hariri, President of the Saudi Ports Authority, added “The strategic partnership between the authority and Maersk is an important step to achieve our ambition for Jeddah Islamic Port to become among the top ten ports in the world by 2030, with the volume of container handling reaching 18 million TEU.
“I am confident that this partnership will greatly enhance the distinguished operational capabilities of Jeddah Islamic Port, which ranks first among the Red Sea Ports, with its strategic location on the Red Sea coast linking the international shipping route between east and west.”
MAWANI has also recently held a meeting dedicated to strengthening its partnerships with leading local and international shipping lines. The move came as part of the Authority’s strategy to promote effective collaboration throughout the Kingdom’s import and export operation ecosystems and supports economic and commercial growth by facilitating smoother trade.