Date: Monday, October 23, 2023
Source: Splash 247
The Saudi Ports Authority (Mawani) and Saudi Global Ports (SGP), a subsidiary of Singapore’s port operator PSA, have signed an agreement for a new integrated logistics zone spanning over 1m sq m at King Abdulaziz port in Dammam.
SGP, which operates two container terminals at King Abdulaziz port, will invest nearly SAR1bn ($267m) in the project, designed to offer comprehensive logistics services and innovative solutions with a strong focus on sustainable practices and systems, Mawani said.
It includes warehouses and yards equipped to store and handle all types of dry and refrigerated goods and features a bonded and re-export area specifically dedicated to sorting, distribution operations, and other value-added services.
Saleh bin Nasser Al-Jasser, Saudi Arabia’s Minister of transport and logistics services and chairman of Mawani, has stated that this recent agreement falls under both local and international private sector investments.
Mawani has been successful in attracting national and international investments and major logistics companies through signing several agreements to establish 11 logistics zones that will be located in the Jeddah Islamic port, King Abdulaziz port and King Fahd industrial port in Yanbu. The total investment for these initiatives is nearing SAR4.2bn.
This investment is expected to create over 13,000 direct and indirect jobs within the logistics sector, and also 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.”
Omar Hariri, the president of the Saudi Ports Authority, noted 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.”