JEDDAH: The Saudi Arabian Ports Authority, known as “Mawani”, has signed an agreement worth 500 million Saudi Riyals (SAR) or $133 million ($1 = €0.95) with DP World (a holding company owned by the government of Dubai). , United Arab Emirates, and the third largest port operator in the world, NDRL). This agreement concerns the construction of a new fully integrated smart logistics park at the Islamic Port of Jeddah.
This is the fifth agreement signed by Mawani, which plans to turn Jeddah into a global logistics hub in line with Saudi Arabia’s Vision 2030 goals. This initiative aims to make the country a global transportation hub.
Other similar agreements have been signed by Mawani with a number of local and international companies including Maersk, CMA CGM, LogiPoint and Bahri. These partnerships are part of the Kingdom’s ambition to become a global logistics hub by 2030.
This agreement was announced by Minister of Transport and Logistics Saleh al-Jasser. arabic news that “The Kingdom is working to implement its National Transport and Logistics Strategy to transform the country into a global logistics hub.” “We are working on the implementation of many initiatives that will lead us to achieve this goal,” he added.
This was stated by the chairman of the group and the CEO of DP World, Sultan Ahmed bin Sulayem. arabic news“In this way, the Kingdom will be able to take advantage of many products that cannot be delivered to the port today. A distribution center closer to the port will be more efficient and effective.”
In another speech, Mr. Ben Sulayem expressed his pride and honor to see that his company is making an effective contribution to the realization of the Kingdom Vision 2030. In particular, it provides for the creation of an efficient maritime transport ecosystem that will confirm the role of Saudi Arabia as a global logistics hub.
DP World Park
According to Mr. Ben Sulayem, “The development of the Islamic Port of Jeddah is an integral part of the Kingdom’s vision of becoming a global economic power by 2030. We are committed to strengthening the role and status of this port. which is strategically located on the Red Sea and has always played a central role in trade between East and West.”
The new Smart Logistics Park will extend over an area of 415,000 m² and, once completed, will be able to accommodate 250,000 TEU containers (a unit expressing the transport capacity of a multiple of the standard container volume, NDRL) thanks to a warehouse that will exceed 100,000 m².
“The park will offer advanced and environmentally friendly e-services. It will combine the operations of the southern container terminal with those of the new logistics park. As such, the authorities are looking to offer comprehensive logistics parks that will increase the competitiveness of the Islamic Port of Jeddah,” said Omar Hariri, President of Mawani.
“In this way, the Kingdom will be able to take advantage of many products that cannot be delivered to the port today. A distribution center closer to the port will be more efficient and effective.”
Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World.
Logistics is an industry that requires private investment.
In an exclusive interview with arabic news A few days ago, Suleiman Al-Mazrua, CEO of the National Industrial Development and Logistics Program, said that logistics in Saudi Arabia requires private and public investment to become the world’s leading logistics hub.
He said in particular that the Kingdom should modernize some of its facilities, be it airports or ports.
The investment required to set up a logistics center in Saudi Arabia is more than 500 billion Saudi Riyals, or $133 billion, it has been revealed. arabic news from reliable sources.
Last year, Danish shipping giant Maersk signed an agreement with Mawani to establish an integrated logistics park at the Islamic Port of Jeddah.
Under the terms of this agreement, Maersk will invest $136 million over 25 years to build infrastructure for storage and distribution of goods, cold storage and e-commerce.
The port will also become a platform for transshipment operations, petrochemical activities and air cargo.
The brand new 205,000 m² project will be the first of its kind in the Islamic Port of Jeddah. It will offer a range of solutions to connect and facilitate supply chains for importers and exporters in Saudi Arabia.
Maersk is also investing heavily in renewable energy to power the facility and ultimately achieve zero carbon emissions.
This project is expected to create over 2,500 direct and indirect jobs in Saudi Arabia.
This text is a translation of an article published on Arabnews.com.