Terminal will have state of the art facility with advanced infrastructure and fully commissioned smart services for greater facilitation of trade
DP World has announced that it has secured a 30-year build-operate-transfer (BOT) contract from the Saudi Ports Authority (Mawani), for the management and development of the Jeddah South Container Terminal at the Jeddah Islamic Port.
Established in 1976 on the Red Sea, the Jeddah Islamic Port is the largest such facility in Saudi Arabia with annual volumes of over 6 million TEUs (twenty-foot equivalent unit). The Jeddah port currently handles approximately 60 per cent of the country’s sea-imports and is a strategic hub that connects East-West cargo.
Under the terms of the agreement, DP World will invest up to $500 million to improve and modernise the Jeddah Islamic Port, including major infrastructure development to enable the Saudi port to serve the ultra-large container carriers, which are considered the world’s largest mega containerships.
Sultan Ahmed Bin Sulayem, group chairman and CEO for DP World, said: “DP World is honoured to support the Kingdom’s 2030 growth vision through this new concession to transform the country into a global logistics hub.”
“We have committed to investing significantly to modernise the Jeddah South Container terminal, which will not only result in greater direct and indirect job creation but also deliver best-in-class efficiency and productivity to the Port’s operations,” he added.
As the main trade destination for Saudi Arabia and one of the kingdom’s major port privatisation projects, the new terminal will have an upgraded capacity of 3.6 million TEUs up from 2.4 million TEUs, to meet the expected growth demands of the future, and will provide 1,400 jobs.
Sulayem added: “We look forward to leveraging our strategic partnership with Mawani and the Ministry of Transport and National Centre for Privatisation to collaboratively develop the Kingdom’s trade ecosystem while enhancing the nation’s competitiveness.”
“Beyond the terminal, our ambition is to develop inland connectivity across the Arabian Peninsula between Jeddah and Jebel Ali Port in Dubai, as well as to Saudi Arabia’s cities through smart technology-led logistics, which should support further growth in this strategic hub that connects East-to-West,” he concluded.
The concession will also be instrumental in facilitating the smooth and efficient movement of cargo and will provide greater access to local and international markets. DP World has operated the South Container Terminal on a lease agreement for more than 20 years.