"Dubai Ports" and "Mawani" of Saudi Arabia announce a new strategic partnership to establish a logistics zone in Jeddah
Within the framework of the close cooperation relations between the United Arab Emirates and the Kingdom of Saudi Arabia, and the Emirate of Dubai’s keenness to share experiences and successful experiences and join efforts to serve the comprehensive development trends in the region, Dubai Ports World (DP World) and the Saudi Ports Authority “Mawani” announced today (Sunday) announced the signing of a 30-year agreement to invest 490 million UAE dirhams (about 133.4 million US dollars) to establish a high-level logistics zone in Jeddah Islamic Port.
The agreement aims to establish a logistics area covering an area of 415,000 square meters, and includes an internal container warehouse with a capacity of 250,000 TEUs measuring 20 feet, and a storage and warehouse area of 100,000 square meters, with the possibility of doubling it to 200,000 square meters.
The agreement was signed under the patronage of the Saudi Minister of Transport and Logistics and Chairman of the Board of Directors of the General Authority of Ports, Engineer Saleh bin Nasser Al-Jasser, and in the presence of Omar bin Talal Hariri, President of the Saudi Ports Authority, and the UAE Ambassador to Saudi Arabia Sheikh Nahyan bin Saif Al Nahyan, Chairman of the Board and President Sultan Ahmed bin Sulayem, CEO of DP World Group, and Mohammed Al Sheikh, CEO of DB World Saudi Arabia, a high-level delegation of Saudi government officials, and a number of dbworld executive management officials.
The new logistics zone at Jeddah Islamic Port will reinforce DB World's strategic position in the region and will provide pioneering multimodal logistics solutions in the Kingdom of Saudi Arabia.
It will also support re-export activities at Jeddah Islamic Port, reducing time and cost of logistics for both importers and exporters.
It will also provide an integrated service platform that links port operations with last mile activities, providing cold warehouses to store refrigerated goods and then collect them in specialized containers and transport them to dealers' warehouses or ship them to neighboring markets.
Increasing efficiency and creating new job opportunities
Sultan Ahmed bin Sulayem, Chairman and CEO of DP World Group, said: “We are pleased and honored to actively contribute to the realization of Saudi Vision 2030, which includes developing a prosperous and sustainable maritime transport system that supports the Kingdom’s economic and social ambitions, and enhances its position as a global logistics hub. On this occasion, we affirm our commitment to invest in the modernization processes of this vital facility through the application of the highest levels of logistics services and the provision of technology-based trade solutions, and we are confident that the stage we have reached today will contribute to raising levels of efficiency and productivity, in addition to creating new job opportunities. "
Bin Sulayem added: “We are committed to strengthening the role and position of Jeddah Islamic Port, which enjoys a strategic location on the Red Sea and has played a vital role throughout the ages in facilitating trade movement between East and West. The core of our strategy as a comprehensive supply chain solutions provider is to provide a package of logistics services to our customers. and fill any gap in the market. Such vital commercial facilities will also enable us to achieve greater progress in the Kingdom, by expanding our cooperation with major leading logistics service providers.”
Integrated logistics zones
For his part, Omar bin Talal Hariri, President of the Saudi Ports Authority, said: "The new logistics zone provides advanced and environmentally friendly electronic services, while integrating the operations of the Southern Container Terminal with the logistics zone, as part of the authority's constant endeavor to provide integrated logistic zones that enhance the competitiveness of the port. Jeddah Islamic Bank contributes to raising the quantities of transshipment goods, in line with the national strategy for transport and logistics services.”
Hariri added: "This partnership will link the port's operations to the logistics region, enabling the provision of complete logistics services with a high degree of operational efficiency, in addition to expanding the circle of joint cooperation with major logistics providers, enhancing re-export operations and reducing the cost of logistics services to provide the best services. at the highest level for the beneficiaries and investors.”
DP World had entered into a concession agreement with the General Authority of Ports “Mawani” in April 2020 to continue operating and managing the Southern Container Terminal at Jeddah Islamic Port for a period of thirty years.
DB World has committed a total investment of /2.94 billion UAE dirhams (about $800 million) to expand and modernize the container terminal.
The new project, which will be conducted in four phases, will see infrastructure upgrades including the expansion of draft and quay depth, installation of advanced equipment, use of advanced technologies, automation and digitization programs, and initiatives to reduce carbon emissions, and is scheduled for completion by 2024.
Upon completion of the modernization project, the container terminal at Jeddah Islamic Port will be able to double the current volume of container handling from 2.5 million 20-foot TEUs to 4 million 20-foot TEUs, which will serve to consolidate Jeddah Islamic Port's position as a major commercial and logistical center on the Red Sea.
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