Interested in sharing experiences and successful experiences within the framework of the close cooperation between the United Arab Emirates and the Emirate of Saudi Arabia and Dubai, and join efforts to serve the region’s comprehensive development trends. The Ports Authority (MA) announced yesterday that it has signed a 30-year investment agreement (USD).
The contract aims to establish a logistics area of 415,000 square meters, including a 20-foot capacity container warehouse with a capacity of 250,000 TEUs and a storage area of 100,000 square meters and a warehouse area. Possibility to double it to 200,000 square meters.
The agreement was signed in the presence of Saudi Minister of Transport and Logistics, Chairman of the Board of Directors of the General Port Authority, His Excellency the Engineer Saleh bin Nasser Al-Jasser and President Omar bin Talal Hariri. Sheikh Nahyan bin Saif Al Nahyan, Ambassador of the United Arab Emirates of Saudi Arabia to the Saudi Port Authority, and Sultan Ahmed bin Suleiman, Chairman and CEO of DP World Group, Mohammed Al Sheikh Saud, Chief Executive Officer of DB World, Saudi Arabia Delegates and several executive executives at “DB World”.
The new logistics zone in the Islamic port of Jeddah will enhance DB World’s strategic position in the region and provide pioneering multimedia logistics solutions in Saudi Arabia. This will support re-export operations in the Islamic port of Jeddah, reducing the time and cost of logistics for importers and exporters. It provides an integrated platform for services that link port operations to last-mile operations, providing cold storage for refrigerated goods, then assembling them in special containers and transporting them to customer warehouses or shipping to neighboring markets.
Increasing efficiency and creating new jobs
Sultan Ahmed bin Suleiman, Chairman and CEO of DP World Group, said: “We are delighted and proud to be actively involved in achieving Saudi Vision 2030. Improves its position as a global logistics hub. On this occasion, we reaffirm our commitment to invest in the modernization processes of this vital facility by implementing state-of-the-art logistics services and providing technology-based business solutions, and we hope that the level we have reached today will contribute to raising the bar. Creating new jobs, as well as efficiency and productivity.
Ibn Sulaym added: “We are committed to strengthening the role and status of the Islamic port of Jeddah, which enjoys a strategic location in the Red Sea, and has played a key role throughout the ages in facilitating trade between the East and the West. Is to fill the gap and provide a package of logistics services to our customers, and such key business facilities will enable us to further advance in the Kingdom by expanding our cooperation with key leading logistics service providers.
Integrated logistics zones
Omar bin Talal Hariri, chairman of the Saudi Ports Authority, said the new logistics zone would provide advanced and environmentally friendly electronic services, while integrating the operations of the southern container terminal with the logistics zone. It contributes to increasing the volume of transshipment goods in line with the National Strategy for Integrated Logistics Zones, Transport and Logistics to enhance the competitiveness of the Jeddah Islamic Port.
Hariri added: “This partnership will connect the port’s operations to the logistics area, enable it to provide a complete range of logistics services, expand its circle of cooperation with key logistics providers, and enhance re-export operations. And reducing the cost of logistics services to provide the best services at the highest level to the beneficiaries and investors.
DP World signed a concession agreement with the General Authority for Ports (Mawani) in April 2020 to operate and manage the Southern Container Terminal at Jeddah Islamic Port for thirty years. DB World has invested a total of 2.94 billion dirhams (approximately $ 800 million) in the expansion and modernization of the container terminal. The new project, which will be conducted in four phases, will see infrastructure improvements, including the expansion of the draft and depth, the installation of advanced equipment, the use of advanced technologies, automation and digitalization projects, and efforts 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 container handling capacity from 2.5 million 20-foot containers to 4 million 20-foot containers, which will help stabilize the status of the Jeddah Islamic Port. A major trading and logistics center on the Red Sea.
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