DP World and the Saudi Ports Authority sign 30-year agreement
DP World and the Saudi Ports Authority (Mawani) have signed a 30-year agreement to build a state-of-the-art, port-centric Logistics Park at the Jeddah Islamic Port. The agreement, with an investment value of more than AED490 million, aims to establish a 415,000 square-metre logistics park with an in-land container depot capacity of 250,000 TEUs (Twenty-foot Equivalent Units) and a warehousing storage space of 100,000 square metres. Future expansions could increase the storage space to 200,000 square metres.
In a move that highlights the deep bonds and strengthening ties between the UAE and Saudi Arabia, the purpose-built logistics park will expand DP World’s regional footprint and bring pioneering multi-modal logistics solutions to the Kingdom of Saudi Arabia.
The port-centric park will boost Jeddah Islamic Port’s re-export activities 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, labelling, fulfilment, consolidation, de-consolidation, and temperature-controlled storage for cargo.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said, "We are proud and honoured to contribute effectively towards the achievement of Saudi Vision 2030. The strategic Vision 2030 framework includes the development of a prosperous and sustainable maritime transportation ecosystem that supports the Kingdom’s socio-economic ambitions and consolidates its status as a global logistics hub. On this occasion, we reiterate our commitment to investing in the modernisation of this facility by providing the 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. We are committed to enhancing the role and the status of the Jeddah 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. Facilities like this logistics park will enable us to make deeper inroads into the Kingdom by extending our collaboration with leading logistics service providers.”
Omar Hariri, President of Mawani, added, "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 enhance the competitiveness of the Jeddah Islamic Port. It will also contribute to raising the quantity of trans-shipped goods in line with the national strategy for transport and logistics services."
DP World had signed a new concession agreement with Mawani in April 2020 to continue operating and managing the South Container Terminal at the Jeddah Islamic Port for 30 years, committing to invest more than AED2.94 billion to expand and modernise the terminal. The overhaul project will take place over four phases and be completed by 2024.