The Saudi Ports Authority (Mawani) and Saudi Global Ports (SGP) have signed a historic agreement to construct a fully integrated logistics park spanning over 1 million square meters at King Abdulaziz Port in Dammam.
This project is set to receive an investment of nearly one billion Saudi Riyals.
The momentous signing ceremony took place in the presence of HRH Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy; H.E. Minister of Transport and Logistic Services Eng. Saleh bin Nasser Al-Jasser; and the Minister of Manpower and Second Minister for Trade and Industry, Dr. Tan See Leng.
Eng. Saleh bin Nasser Al-Jasser, the Minister of Transport and Logistics Services and Chairman of the Board of Directors of the Saudi Ports Authority, highlighted that this agreement represents a significant milestone in both local and international private sector investments. The overarching goal of these investments is to establish multiple high-performance logistics zones that will enhance logistics sector efficiency, elevate service quality, boost cargo handling capacity, and create numerous job opportunities.
This initiative is poised to reinforce the logistics sector’s role in supporting the national economy and strengthen the Kingdom’s position as a global logistics hub, connecting three continents. These efforts align perfectly with the National Strategy for Transport and Logistics Services and Vision 2030.
Minister Al-Jasser emphasised that the contracts inked with the private sector over the past two years to develop and expand logistics areas underscore the appeal of Saudi ports and the Saudi logistics sector. They also shine a spotlight on the vast and promising opportunities within this vital sector, which plays a pivotal role in driving economic growth and achieving sustainable development.
The agreement was formally signed by H.E. the President of the Saudi Ports Authority, Mr. Omar Hariri, and the CEO of the Saudi Global Ports Company, Edward Tah.
President Omar Hariri underscored that this newly envisioned logistics park is part of Mawani’s ambitious initiative to expand the number of logistics parks within Saudi ports to a total of 12. This expansion aims to elevate the Kingdom’s standing in the global logistics services performance index from its current 38th place to a remarkable 10th place, solidifying its regional leadership in logistics.
The logistics park has been meticulously designed to offer comprehensive logistics services and innovative solutions, with a strong focus on sustainable practices and systems. It will include warehouses and yards equipped to store and handle all types of dry and refrigerated goods. Additionally, the park will feature a bonded and re-export area specifically dedicated to sorting, distribution operations, and other value-added services.
The ‘Saudi Global Ports Company’ operates two container terminals at King Abdulaziz Port in Dammam, a joint venture between the ‘Saudi Public Investment Fund,’ the Singaporean ‘PSA International Company,’ and Al Balagaa Group.
Notably, ‘Mawani’ has successfully attracted national and international investments and major logistics companies through the signing of several agreements to establish 11 logistics zones. These strategically located zones will be situated in the Jeddah Islamic Port, King Abdulaziz Port in Dammam, and King Fahd Industrial Port in Yanbu. The total investment for these initiatives approaches 4.2 billion riyals. This substantial investment is expected to not only create over 13,000 direct and indirect jobs within the logistics sector but also stimulate a significant economic revival. These initiatives are poised to bolster the gross domestic product, enhance international trade relations, improve multimodal transport connections, and foster growth in the logistics services industry.
