The unit will have a handling capacity of 300,000 TEUs to boost freight transportation
The Saudi Ports Authority, better known as Mawani, is building a logistics park and re-export zone at Dammam’s King Abdulaziz Port with an investment of more than 100 million Saudi riyals ($27 million) as the Arab world’s largest economy focuses on diversification.
The unit, covering an area of more than 100,000 square metres, will have a handling capacity of 300,000 TEUs (20-foot equivalent units) and will support inland freight transportation between the central and eastern regions and the rest of the kingdom, the Saudi Press Agency reported on Friday.
The park will be built in partnership with Medlog, the logistics arm of the Mediterranean Shipping Company.
“The latest deal runs parallel with the goals of the National Transport and Logistics Strategy to position Saudi Arabia as a global logistics hub connecting three major continents besides fitting perfectly with Mawani’s pivotal role in building a booming and sustainable maritime sector …. while fulfilling key strategic outcomes, such as expanding the number of world-class logistics parks and re-export centres to 30,” the SPA said.
The agreement comes as Saudi Arabia continues to diversify away from oil with new projects spanning sectors including tourism and hospitality, infrastructure, real estate,and entertainment.
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, is injecting billions of dollars into the economy to develop projects and spur growth.
“Thanks to its proximity to Jubail Industrial City and major urban centres in the eastern region, the logistics facility is primely-located to deliver competitive and cost-efficient services to the local market,” the SPA said.
In the last two years, Mawani had struck partnerships worth more than 2 billion riyals with national and international giants to establish six modern logistics parks that have the potential of creating more than 6,000 direct and indirect job opportunities, according to SPA.
In October, Mawani signed two contracts worth 642 million riyals to deepen and build berths at the Jeddah Islamic Port.
It is also partnering with DP World to build a “port-centric” logistics park at the Jeddah Islamic Port with a total investment of more than 500 million riyals($13.5M).