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 $133.4 million, aims to establish a 415,000 square-meters logistics park with an in-land container depot capacity of 250,000 TEUs and a warehousing storage space of 100,000 square meters. Future expansions could increase the storage space to 200,000 square meters.
The agreement was signed under the patronage of Eng. Saleh bin Nasser Al-Jasser, Saudi Arabia’s Minister of Transport and Logistic Services and Chairman of MAWANI.
The signing ceremony was attended by Mr. Omar Bin Talal Hariri, President of MAWANI, Sheikh Nahyan bin Saif Al Nahyan, UAE Ambassador to Saudi Arabia, Mr. Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, Mr. Mohammad Alshaikh, CEO of DP World Saudi Arabia, and a delegation of senior Saudi government officials as well as representatives from DP World’s leadership team.
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, labeling, fulfillment, consolidation, de-consolidation, and temperature-controlled storage for cargo.
Sultan bin Sulayem Group Chairman & CEO DP World
“We are proud and honored 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 modernization 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.”
Mr. Hariri said that “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.”
In April 2020, DP World and MAWANI signed a new 30-year concession agreement to operate and manage the South Container Port at the Jeddah Islamic Port, committing to invest more than $800 million to expand and modernize the terminal. The overhaul project will be completed in four phases by 2024.
