Saudi Ports Authority (MAWANI) has signed an agreement with DP World to establish a new fully-integrated smart logistics park in Jeddah Islamic Port.
The deal includes over SAR 500M ($133 million) worth of investment from DP World, making it the fifth deal following a series of agreements signed with companies in maritime transport and logistics including Maersk, Bahri and CMA CGM.
The agreement aims to build a logistics park over a total area of 415,000 square-metres, with a capacity of 250,000 TEU and 100,000 square-metres of warehousing, as it will provide advanced and eco-friendly e-services, and integrate the operations of the south container terminal with the logistics park.
The agreement was signed by H.E. Omar bin Talal Hariri, President of Saudi Ports Authority, and Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, at the signing ceremony held with the attendance of several leaders from the transport and logistics entity.
In attendance, H.E. Eng. Saleh Al Jasser, Minister of Transport and Logistic Services and Chairman of MAWANI, said that signing this agreement aligns with the National Transport and Logistics Strategy (NTLS) objectives of positioning Saudi Arabia as a global logistics hub, and supports the growth of the logistic services industry on the Red Sea coast.
“With the support from the Custodian of the Two Holy Mosques and HRH the Crown Prince, the transport and logistics services entity continues to achieve the development objectives in line with Saudi Vision 2030, by establishing logistics parks that enable the transport and supply chains, following a thorough developmental plan, and strengthening the strategic partnership with the private sector, aiming to increase the attractiveness of investment opportunities in Saudi ports and the maritime transport sector,” Al Jasser said.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, commented: “We are proud and honoured to contribute effectively towards the achievement of Saudi Vision 2030, which includes the development of a prosperous and sustainable maritime transportation ecosystem that supports the Kingdom’s socio-economic ambitions and consolidate its status as a global logistics hub.
“On this occasion, we reiterate our commitment to invest in the modernisation of this facility by providing highest standards of logistics services and technology-enabled trade solutions. We are confident that today’s milestone will contribute to increasing efficiency and productivity levels and creating new jobs.
“Developing Jeddah’s Islamic Port is central to the Kingdom’s vision to transform into a global economic powerhouse by 2030. We are committed to enhancing the role and the status of Jeddah’s 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,” Bin Sulayem added.
