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Monday, December 05, 2022

DP World, Saudi Ports Authority sign agreement to build Jeddah Logistics Park

Aiming to foster regional development and experience sharing, DP World and the Saudi Ports Authority (Mawaani) on Sunday signed a 30-year agreement to build a state-of-the-art, port-focused logistics park in Jeddah Islamic. Port, Emirates News Agency (WAM) reported.

With an investment value of over Dh.490 million ($133.4 million), the agreement aims to establish a 415,000 square meter logistics park with an in-land container depot capacity of 250,000 TEU (twenty-foot equivalent units) and a warehousing facility. 100,000 square meters of storage space. Future expansions could increase the storage space to 200,000 square metres.

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The signing ceremony was attended by Omar bin Talal Hariri, President of Mawani; Sheikh Nahyan bin Saif Al-Nahyan, Ambassador of the United Arab Emirates to the Kingdom of Saudi Arabia; Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World; Mohamed Alsheikh, CEO DP World Saudi Arabia.

Among those present included the Saudi Minister of Transport and Logistics Services and the chairman of Mawani Engg. Saleh Al Jassar, and a delegation of senior officials from the Saudi government, as well as representatives of DP World’s leadership team.

The purpose-built logistics park will expand DP World’s regional footprint and bring leading multi-modal logistics solutions to the Kingdom of Saudi Arabia.

The port-focused park will boost the re-export activities of Jeddah Islamic Port and reduce the time and cost of logistics for importers and exporters. It will provide an integrated service platform that links port operations with last mile activities. It will also offer processing, labeling, fulfillment, consolidation, de-consolidation and temperature controlled storage for cargo.

Bin Sulayem, Group Chairman and CEO of DP World, said: “We are proud and honored to have contributed effectively to the achievement of Saudi Vision 2030. The Strategic Vision 2030 framework includes the creation of a rich and sustainable maritime transport ecosystem. development that supports the Kingdom’s socio-economic ambitions and strengthens its position as a global logistics hub.”

“On this occasion, we reiterate our commitment to invest in the modernization of this facility by providing the highest standards of logistics services and technology-enabled business solutions. We are confident that today’s milestone has been achieved by increasing the level of efficiency and productivity; will contribute to the creation of new jobs.”

“We are committed to enhancing the role and status of the Islamic Port of Jeddah, which is strategically located on the Red Sea and has historically been instrumental in facilitating the movement of trade between the East and the West. As an end supply chain solutions provider, a key part of our strategy is to package logistics services for our clients and bridge the existing market gap. Facilities like this Logistics Park allow us to expand our association with leading logistics service providers in the Kingdom. It enables us to penetrate deep into the world,” Bin Sulayem said.

Omar Hariri, President of Mawani, said: “The park will provide advanced and eco-friendly e-services by integrating the operations of the South Container Terminal with the new Logistics Park. The Authority’s move to develop a holistic Logistics Park will complement the Jeddah Islamic Port’s Competitiveness will increase. This will also contribute to increasing the volume of trans-shipped goods in line with the National Strategy for Transport and Logistics Services.”

“This partnership will connect port operations with a new logistics park to offer end-to-end logistics services with high efficiency. It will also help us to cut the cost of logistics services by further expanding our collaboration with leading logistics service providers, scaling up re-export operations and providing best-in-class services to stakeholders and investors,” said Hariri he said.

DP World signed a new concession agreement with Mawani in April 2020 to continue to operate and manage the South Container Terminal at Jeddah Islamic Port for 30 years, with Dh2.94 billion for the expansion and modernization of the terminal. ($800 million) was committed to invest more than Rs. , to be completed by 2024 in four phases.

The project will see infrastructural upgrades, including expansion of draft depth and mooring, installation of advanced equipment and technologies, automation and digitization programmes, and decarbonisation initiatives.

Once completed, the new terminal will increase Jeddah Islamic Port’s container handling capacity from the current 2.5 million TEU to 4 million TEU and enhance Jeddah Islamic Port’s status as a major trade and logistics hub on the Red Sea coast.

Read more: Saudi Arabia registers net FDI growth of 257.2 percent in 2021: Report

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