Maersk strikes up landmark port deal with Jeddah

Prince Saud bin Mishal has inaugurated Maersk’s largest global logistics investment at Jeddah Islamic Port. Valued at SAR 1.3 Billion, the funding represents a significant step forward in Maersk’s presence in the Saudi Arabia market and boosts the Kingdom’s own journey to becoming a leading global logistics hub.

Under the esteemed patronage of HRH Prince Khalid Al-Faisal bin Abdulaziz, Adviser to the Custodian of the Two Holy Mosques and Governor of the Makkah Region, and in the presence of HE Eng. Saleh bin Nasser Al-Jasser, Minister of Transport and Logistic Services and Chairman of the Saudi Ports Authority, His Royal Highness Prince Saud bin Mishal bin Abdulaziz, Deputy Governor of the Makkah Region, officially inaugurated Maersk’s largest global logistics investment at Jeddah Islamic Port this week.

This significant venture, valued at SAR 1.3 billion, underscores Saudi Arabia’s growing prominence in the global logistics sector and was attended by key leaders from the logistics and maritime industries within the Kingdom.

The newly inaugurated logistics park at Jeddah Islamic Port marks a major milestone in Saudi Arabia’s logistics infrastructure. Commenting on the event, His Excellency the Minister of Transport and Logistic Services noted: “This logistics park is one of 10 logistics parks at Jeddah Islamic Port launched through private sector investments. It is a pivotal part of the Saudi Ports Authority’s strategy, in collaboration with the Ministry of Transport and Logistic Services, to foster logistics parks across Saudi ports in partnership with leading national and international companies.

“Our goal is to enhance the efficiency of logistics services and strengthen operational capabilities in the Kingdom’s ports, thereby reinforcing their prominent role on the international maritime map.”

His Excellency Al-Jasser further highlighted the extensive support provided to the transport and logistics sector by the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince. He noted the impressive strides the Saudi port sector has made, achieving unprecedented efficiency in operational performance, setting new records in international benchmarks, and expanding maritime connectivity with countries across the globe. The sector has become a magnet for major global companies, drawing in over SAR 10 billion in foreign investments. This influx of capital is driving economic growth, facilitating knowledge transfer, and generating more than 10,000 direct and indirect jobs in the sector, solidifying Saudi Arabia’s position as a global logistics hub.

The newly established logistics park at Jeddah Islamic Port is poised to play a critical role in supporting the Kingdom’s economic activity. It is designed to provide high-efficiency logistics services that will boost trade and exports to international markets while enhancing supply chain and logistics services. His Excellency Al-Jasser reiterated that the transport and logistics system, with the ongoing support of His Royal Highness the Crown Prince, remains committed to achieving the ambitious objectives set out in the National Transport and Logistics Strategy, which aligns with the broader goals of Saudi Vision 2030.

HE Mr. Omar Hariri, President of the Saudi Ports Authority, emphasized that this new logistics park is a continuation of Mawani’s strategic partnerships with major global and national companies. He highlighted the park’s role in supporting the growth of the logistics services industry and contributing to economic development by offering advanced and intelligent logistics solutions. These solutions are expected to significantly enhance export movements, support supply chains, and lead to qualitative improvements in operational performance at Saudi ports, thereby bolstering the logistics sector and global trade.

The integrated logistics park, which spans 225,000 square metres, includes facilities for storage and distribution that can handle a diverse range of cargo. These facilities include warehouses for refrigerated goods, a re-export area, and dedicated spaces for LCL (Less than Container Load) cargo shipping. Additionally, the park features an e-commerce fulfilment centre equipped with high-density storage designs and pioneering mechanical solutions. Notably, the facility will also house an internal academy dedicated to training women, underscoring Maersk’s commitment to gender diversity in the workplace and creating employment opportunities for Saudi women.