RIYADH, SAUDI ARABIA – The Saudi Ports Authority (Mawani) and Saudi Global Ports (SGP) have inked a deal to build a fully integrated logistics park spanning over 1 million square meters at King Abdulaziz Port in Dammam, with an investment of almost US$266 million.
The agreement was signed in the presence of Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Transport and Logistic Services and Chairman of the Board of Directors of the Saudi Ports Authority Eng. Saleh bin Nasser Al-Jasser, and Singaporean Minister of Manpower and Second Minister for Trade and Industry Dr. Tan See Leng.
Saleh bin Nasser Al-Jasser has said that this recent agreement falls under both local and international private sector investments.
The objective of these investments is to establish multiple high-performance logistics zones that will enhance the efficiency of the logistics sector, improve service quality, increase handling numbers, and generate additional job opportunities.
This initiative is expected to strengthen the role of the logistics sector in supporting the national economy and reinforce the Kingdom’s position as a global logistics hub connecting three continents.
This aligns with the National Strategy for Transport and Logistics Services and Vision 2030.
Al-Jasser emphasized that the contracts signed with the private sector over the past two years to develop and expand investments in logistics areas illustrate the attractiveness of Saudi ports and the Saudi logistics sector.
They also highlight the vast and promising opportunities within this crucial sector, which plays a significant role in driving economic growth and achieving sustainable development.
The agreement was signed by the President of the Saudi Ports Authority, Omar Hariri, and the CEO of the Saudi Global Ports Company, Edward Tah.
Omar Hariri has affirmed that this new logistics park is part of the Mawani initiative to expand the number of logistics parks within Saudi ports to 12.
This expansion is expected to elevate the Kingdom’s position in the global logistics services performance index from its current 38th place to the 10th. It will solidify its regional leadership in logistics.
The park is designed to offer comprehensive logistics services and innovative solutions, with a strong focus on sustainable practices and systems.
It includes warehouses and yards equipped to store and handle all types of dry and refrigerated goods.
The park features a bonded and re-export area specifically dedicated to sorting, distribution operations, and other value-added services.
The ‘Saudi Global Ports Company’ operates two container terminals at King Abdulaziz Port in Dammam, which is a joint venture between the ‘Saudi Public Investment Fund’, the Singaporean ‘PSA International Company’, and Al Balagaa Group’.
Mawani succeeded in attracting national and international investments and major logistics companies through signing several agreements to establish 11 logistics zones.
These zones will be strategically located in the Jeddah Islamic Port, King Abdulaziz Port in Dammam, and King Fahd Industrial Port in Yanbu.
The total investment for these initiatives is US$1.12 billion approximately.
This investment will not only lead to the creation of over 13,000 direct and indirect jobs within the logistics sector, but it is also expected to trigger a major economic revival.
These initiatives are expected to bolster the gross domestic product, enhance international trade relations, improve multimodal transport connections and foster growth in the logistics services industry.