Development of US $250mn logistics park commences in Jeddah Port
The facility is being jointly developed by DP World and Saudi Ports Authority
Ground has been broken on a new logistics park which will come up on a 415,000sqm area in Jeddah Port. The project is being jointly developed by DP World and the Saudi Ports Authority (Mawani).
According to DP World, the new facility will provide modern storage and distribution facilities, as well as help boost trade in the Kingdom of Saudi Arabia and the wider region. Established in 2022 as part of a 30-year concession, Jeddah Logistics Park will be developed in two phases with a planned opening in Q2 next year.
According to a report, the greenfield facility is being developed at a cost of US $250mn and will feature 185,000sqm of warehousing space and a multipurpose storage yard, which will make it the largest integrated logistics park in the Kingdom. The facility will have the capacity for more than 390,000 pallet positions, offering customers an efficient platform for the seamless flow of goods to and from Jeddah.
The facility will have a rooftop solar plant on the warehouse that will generate 20MW of renewable energy, contributing to its sustainable design.
“Saudi Arabia has always been a deeply important market for DP World and this milestone represents our ongoing commitment to the Kingdom. Jeddah Logistics Park, strategically located on the vital Asia-Europe shipping route, will provide world-class multimodal connectivity and market access for our customers, while supporting the ambitious aims of Saudi Vision 2030. This investment marks a significant step as we mark 25 years of operations in Jeddah and underscores our enduring commitment to facilitating the flow of trade,” said DP World Chairman and CEO Sultan Ahmed bin Sulayem.
The collaboration between Mawani and DP World also includes the management of South Container Terminal through a separate 30-year concession signed in 2020. The terminal is said to currently be in the final phase of a comprehensive modernisation project, and is set for completion in Q4 2024, which will see the handling capacity being ramped up to five million twenty-foot equivalent units (TEUs). Altogether, the two DP World projects represent a combined investment of close to $1bn.
President of Mawani, Omar Bin Talal Hariri, said this new logistics area will be connected to DP World’s South Container Terminal at Jeddah Islamic Port, facilitating growth and increasing the number of containers handled at the terminal.
He highlighted, “The project is part of Mawani’s broader efforts to expand the number of logistics centres in Saudi ports, in partnership with major national and international companies, and in line with the objectives of the National Transport and Logistics Strategy and Vision 2030.”
