DP World and the Saudi Ports Authority (Mawani) have announced a partnership to build a state-of-the-art, port-centric logistics park at the Jeddah Islamic Port.
The 30-year agreement will see an investment value of more than SAR500 million (AED490 million) to build the park, which spans over 415,000 square metres.
This includes in-land container depot capacity of around 250,000 units and warehousing storage space of 100,000 square metres. Future expansions could increase the storage space to 200,000 square metres.
The agreement was signed under the patronage of the Saudi Minister of Transport and Logistic Services and Chairman of the Board of Saudi Ports Authority, Saleh bin Nasser Al-Jasser.
The port-centric logistics park will boost Jeddah Islamic Port’s re-export activities, reducing the time and cost of logistics for importers and exporters.
It will provide an integrated platform of services that link port-operations with last-mile activities, providing temperature-controlled storage for cargo, in addition to its processing, labelling, fulfilment, consolidation and de-consolidation.
Jeddah’s Islamic port 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 these will enable us to make deeper inroads into the Kingdom, by extending our collaboration with leading logistical service providers,” Bin Sulayem added.
President of the Saudi Ports Authority, Omar Hariri, said: “The park will provide advanced and eco-friendly e-services by integrating the operations of south container terminal with the new logistics park, in a move from the Authority to offer holistic logistics parks which will enhance the competitiveness of Jeddah Islamic Port.”
DP World 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 the next 30 years, committing to invest a total of more than SAR3 billion (AED2.9 billion) to expand and modernise the terminal.
The overhaul project, which will take place over four phases and is set to be completed by 2024, will see infrastructural upgrades, including the broadening of draft depth and quay, and the installation of advanced equipment and technologies, automation and digitalisation programmes, in addition to decarbonisation initiatives.
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