DP World, Saudi Ports Authority In Major New Partnership for Jeddah Logistics Park


DP World and the Saudi Ports Authority (Mawani) announced the signing of a 30-year agreement with an investment value of more than SAR 500 million ($133.33 million) to build a state-of-the-art, port-centric Logistics Park at the Jeddah Islamic Port.

The agreement aims to establish a logistics park which spans over 415,000 square metres, with an in-land container depot capacity of approximately 250,000 TEU and warehousing storage space of 100,000 square metres. Future expansions could increase the storage space to 200,000 square metres.

The agreement was signed under the Patronage of the Saudi Minister of Transport and Logistic Services and Chairman of the Board of Saudi Ports Authority, His Excellency Eng. Saleh bin Nasser Al-Jasser.

The signing ceremony was attended by His Excellency Omar Bin Talal Hariri, President of Mawani, His Excellency Sheikh Nahyan bin Saif Al Nahyan, UAE Ambassador to the Kingdom of Saudi Arabia, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, Mohammad Alshaikh, CEO DP World Saudi Arabia, and a delegation of senior Saudi government officials as well as representatives from DP World’s leadership team.

The 415,000 square metre purpose-built facility will bolster DP World’s footprint in the region and will bring pioneering multi-modal logistics solutions to the Kingdom of Saudi Arabia.

The port-centric Logistics Park will boost Jeddah Islamic Port’s re-export activities, reducing the time and cost of logistics for importers and exporters, alike. It will provide an integrated platform of services that link port-operations with last-mile activities, providing temperature-controlled storage for cargo, in addition to its processing, labelling, fulfilment, consolidation and de-consolidation.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, commented: “We are proud and honoured to contribute effectively towards the achievement of Vision 2030, which includes the development of a prosperous and sustainable maritime transportation ecosystem that supports the Kingdom’s socio-economic ambitions and consolidate its status as a global logistics hub. On this occasion, we reiterate our commitment to invest in the modernisation of this facility by providing highest standards of logistics services and technology-enabled trade solutions. We are confident that today’s milestone will contribute to increasing efficiency and productivity levels and creating new jobs.”

“We are committed to enhancing the role and the status of Jeddah’s Islamic port, which is strategically located on the Red Sea and has historically played a pivotal role in facilitating the movement of trade between the East and the West. A key part of our strategy as an end-to-end supply chain solutions provider, is to package logistical services for our customers and bridge any existing gaps in the market. Facilities like these will enable us to make deeper inroads into the Kingdom, by extending our collaboration with leading logistical service providers,” Bin Sulayem added.

Commenting on the announcement, His Excellency Omar Hariri, The President of The Saudi Ports Authority, said: “The park will provide advanced and eco-friendly e-services by integrating the operations of south container terminal with the new logistics park, in a move from the Authority to offer holistic logistics parks which will enhance the competitiveness of Jeddah Islamic Port. It will also contribute to raising the quantities of trans-shipped goods, in line with the national strategy for transport and logistics services.”

“This partnership will connect the port’s operations to the new logistics park to offer end-to-end logistics services with high efficiency. It will also help us expand our joint collaboration further with major logistics service providers, enhance the re-export operations and cut costs of the logistics services in order to provide the best-in-class services to stakeholders and investors,” Hariri added.

DP World signed a new concession agreement with Mawani in April 2020 to continue operating and managing the South Container Terminal at the Jeddah Islamic Port for the next 30 years, committing to invest a total of more than SAR 3 billion ($800 million) to expand and modernise the terminal. The overhaul project, which will take place over four phases and is set to be completed by 2024, will see infrastructural upgrades, including the broadening of draft depth and quay, and the installation of advanced equipment and technologies, automation and digitalisation programmes, in addition to decarbonisation initiatives.

When complete, the revamped terminal will double Jeddah Islamic Port’s container handling capacity from 2.5 million TEUs currently to 4 million TEUs and solidify Jeddah Islamic Port standing as a major trade and logistics centre on the Red Sea coast.