Saudi Global Ports Company (SGP), a member of the PSA Group, has unveiled plans to turn the King Abdulaziz Port Dammam (KAPD) into a mega-container hub after becoming the sole terminal operator at the Port.
According to a statement, SGP will launch development and modernisation plans to integrate the First and Second container terminals and increase the TEU capacity from approximately 4 million to 7.5 million.
The plans were unveiled after SGP completed the successful handover of the First and Second terminals from the Saudi Ports Authority (Mawani). This followed the signing of a 30-year Build Operate and Transfer agreement between Mawani and SGP in April 2020.
The expansion will cost SGP an estimated SAR 7 billion ($1.8 billion), the largest single largest seaport investment by a single operator under a public private partnership in Saudi Arabia.
Wan Chee Foong, Regional CEO of Middle East South Asia, PSA International, said, “We would like to thank our shareholding partner PIF, Mawani, and the Kingdom for their strong support and confidence in SGP.
“As both a shareholder and technical partner, PSA is committed to providing its expertise and leveraging its resources towards the transformation of King Abdulaziz Port into a global mega hub, with modern and robust infrastructure, and through the cultivation of a strong Saudi workforce.
“We would also like to thank our partners, customers, staff and stakeholders for their continued support as we work together alongside towards a more efficient and resilient global supply chain.”
The creation of the new mega-hub will serve as key gateway for goods in and out of Saudi Arabia, and also be a driver in its Vision 2030 initiative, a long term project to diversify the economy.
Abdulla Zamil, Chairman of SGP, also commented: “I would like to express my gratitude to the management and working teams from Mawani and SGP for their close partnership. The smooth transition within a short timeline under the pandemic situation is phenomenal.
“The positive relationship will be the catalyst to accelerate the developments to elevate the seaport and logistics capabilities of Dammam to support the industrial growth initiatives under Saudi Vision 2030.”
Mawani’s President, H.E Eng. Saad commented, “I am pleased that the transition has taken place successfully.
“I am confident that SGP will continue to raise the performance and customer service levels across both terminals through their strong business practices and as SGP invests and develops key infrastructure, focusing on environmentally friendly and technologically sophisticated systems to develop a modern Saudi workforce.”