The start of the largest investment contract in Saudi seaports

The start of the largest investment contract in Saudi seaports

It includes the largest smart terminal for container handling in the Middle East

Riyadh: «Middle East»

The General Authority for Ports (Mawani) announced yesterday the start of the actual operation of the largest single allocation contract in Saudi Arabia, which was concluded last April, within the framework of developing and operating container terminals at King Abdulaziz Port in Dammam with the Saudi International Ports Company ( SGP, which is owned in partnership between the Saudi Public Investment Fund and the International Group (PSA), with investments exceeding 7 billion riyals (1.8 billion dollars), according to the Build, Operate and Transfer (BOT) formula, with a contract spanning 3 contracts.
This event comes in activation of the Memoranda of Understanding signed before Prince Mohammed bin Salman, Crown Prince, Deputy Prime Minister and Minister of Defense, in launching the National Industry and Logistics Development Program, and among the ongoing development processes that the Ports Authority is working on, as one of the initiatives of “Nadlib”. As part of the Kingdom’s Vision 2030, to take advantage of the Kingdom’s strategic location, which mediates 3 continents, namely Asia, Europe and Africa, through which a third of global trade passes, as it is one of the pillars of the program that supports growth plans and contributes to providing an attractive environment for investment, to make the Kingdom a global logistical center .
When the planned expansion works are fully completed, the new assignment contract will contribute to increasing the annual container handling capacity at King Abdulaziz Port to 7.5 million TEUs, an increase of more than 120 percent, which is the largest investment in seaports by one operator, within the framework of A partnership between the public and private sectors in the Kingdom of Saudi Arabia.
According to the new contract, the Saudi International Ports Company will, with the beginning of the current month of October, manage both the first and second container terminals after their merger at King Abdulaziz Port in Dammam, to become the largest smart container handling terminal in the Middle East. The successful delivery of the first container terminal by the Saudi Ports Authority to the Saudi International Ports Company in less than 6 months, since the operation agreement was signed last April.
The General Authority for Ports and the Saudi International Ports Company have worked closely since the signing of the agreement on various activities and fields, including the preservation of the workforce, the transfer of assets, the inclusion of electronic port community services, cooperation with the relevant sectors, in addition to the transfer of equipment for the first container terminal, In addition to providing and operating more than 200 new handling equipment, to ensure efficient operation of both terminals.
The Minister of Transport and Chairman of the Board of Directors of the General Authority for Ports, Eng. Saleh Al-Jasser, confirmed in a statement issued yesterday that the transport and logistics sector in the Kingdom enjoys support and attention by the government, as exemplified by what the sector is witnessing in recent times of an important qualitative shift, which included its facilities, equipment, equipment and facilities And its operational and logistical mechanisms, so that Saudi ports became one of the most important ports in the region, and a destination for many global shipping lines. Al-Jasser added that the operation of the new assignment contract in the King Abdulaziz Port in Dammam is an important step in developing the transport system in the Kingdom, and achieving the vision of His Highness the Crown Prince to benefit from the Kingdom’s geographical position, as a major center for global trade, and a continuation of the accelerated development efforts to improve the competitiveness of the logistical sector. In the Kingdom, which strengthens the contribution of the private sector, and confirms the vitality and attractiveness of the national economy in various circumstances.
For his part, the President of the General Authority for Ports, Eng. Saad Al-Khlab, pointed out that the new privatization contract will open the horizons towards a promising future for King Abdulaziz Port in Dammam, as a leading center for container handling and a global competitor in the maritime transport industry, in partnership with the Saudi International Ports Company, stressing This strategic partnership will contribute to raising the level of performance and service provided to beneficiaries through the two stations, as well as investing and developing the main infrastructure, with a focus on the use of technologically advanced environment-friendly systems, in accordance with the highest international practices.
For his part, the Chairman of the Board of Directors of the Saudi International Ports Company, Abdullah Al-Zamil, explained that the transfer process went smoothly, within a short period of time, and in light of the global pandemic, adding that it was a positive step that would be a catalyst in accelerating developments to raise the level of the port and the capacity of logistical services in the city of Dammam To support industrial growth initiatives in accordance with the Kingdom’s Vision 2030.
It is noteworthy that “King Abdulaziz Port” is the largest Saudi port on the coast of the Arabian Gulf. It is distinguished by its location, which is an integrated trade window that connects the Kingdom with the world with 43 berths, an area of ​​19 km², and a capacity of 105 million tons. It is also linked with the dry port in Riyadh by railways, which helps the entry of goods from different parts of the world to the eastern and central regions of the Kingdom.
The port provides comprehensive operational services, and embraces modern handling equipment that enables it to handle various types of cargo, as it includes two advanced container terminals, a refrigerated goods terminal, two general cargo terminals, and two cement terminals, one for exporting black cement and clinker, the other for white cement, a terminal for bulk grains, and a handling station. Iron ore, marine craft manufacturing area, gas and oil platforms, and a ship repair facility in the heart of the port includes two floating docks to accommodate ships up to 215 linear meters.

Saudi

The Saudi economy