KING ABDULLAH PORT MAKES ITS MARK IN MIDEAST CARGO TRADE SCENE

The official launch of the King Abdullah Port at the King Abdullah Economic City in Rabigh, on the Red Sea, underscores the importance of a vital new project with a unique model in the region.

King Abdullah Port is the first facility of its kind that is developed, managed and operated by the private sector, with a cost of approximately SAR 13 billion.

The project is positioned as a prime East-West hub, on the main trade route between Asia and Europe. It is well suited for the Middle East, Gulf Peninsula and Saudi markets because it is close to the industrial hubs of Jeddah, Rabigh, and Yanbu, as well as the major population centres of Jeddah, Makkah and Madinah. It also boasts proximity to the burgeoning African market.

The project, which has been in operation since 2013, has already enjoyed strong success and is the second largest port in the kingdom in terms of container handling.

Annual throughput of the port rose to 2,301,595 twenty-foot equivalent units (TEU) by the end of 2018, an increase of more than 36% compared to 2017.

Owned by the Ports Development Company, King Abdullah Port has been listed as the fastest growing container port and one of the world’s top 100 ports after less than four years of operation.

Eight of the largest shipping lines operate at the port to offer integrated services to importers and exporters, and the port’s development plan is proceeding at a steady pace with a clear vision to become one of the world’s leading ports.

Other agreements signed by the port include a memorandum of understanding (MoU) between King Abdullah Port and Saudia Cargo to establish a land-air bridge, linking the country’s port to airports and boosting intra-trade volume to SAR 10 billion by 2030.

The MoU will impact several sectors, and play a key role in fulfilling the goals of the kingdom’s National Industrial Development and Logistics Program. An MoU was also signed with Petro Rabigh to make the port the petrochemical company’s primary export platform.

Another MoU signed by King Abdullah Port with the National Container Terminals will expand the port’s container terminal and increase throughput to 7 million TEU, making it the largest container port on the Red Sea coast. The beginning of drilling operations on the north basin between the port and Huta Marine was also announced, an agreement which will add 10 million TEU of throughput and 15 million TEU of bulk cargo, according to the company.

The development comes as the kingdom raises its national maritime fleet capacity to more than 7.6 million tonnes of goods by the end of 2018, a 50% increase compared to 2017, according to the International Maritime Organization (IMO). Saudi Arabia’s fleet was ranked 23rd globally in 2018, out of 174 IMO member states. In 2017, the kingdom was ranked 32nd in the world.

Saudi Arabia is also tapping the expertise of China Ocean Shipping Company Limited (COSCO) to share knowledge and expertise with the world’s third largest shipping company.

At the recently concluded Belt and Road Forum for International Cooperation in Beijing, Dr. Nabil bin Mohammed Al-Amoudi, Saudi minister of transport and chairman of the board of directors of the Public Transport Authority, discussed opportunities to develop the relationship with the Chinese company and “transfer its expertise to Saudi ports in important aspects such as handling centres and transshipment techniques.”

The kingdom's nine ports handled 66,335,121 tonnes of shipment in the first quarter, an increase of 7.62%, while the number of containers exported and imported reached 1,682,806, an increase of 7.02% compared to the same period last year.

The number of vessels in Saudi ports during the first quarter of 2019 reached 2,983, the number of passengers 320,191, while vehicles reached 162,071 and the number of livestock 1,664,725 heads, according to the Saudi Ports Authority, or Mawani.

The Saudi government’s decision to promote Abdulhadi bin Ahmed Al-Mansouri as president of the General Authority of Civil Aviation (GACA) at the rank of minister, underscores its focus on elevating the country’s airports and wider logistics industry.

In May, Prince Sultan bin Salman bin Abdulaziz, chairman of the Saudi Space Commission and chairman of the Board of Trustees of the National Aviation Academy, launched in Rabigh the first international aviation academy in Saudi Arabia.

The institution aims to upgrade the skills of aviation students and develop a strong cadre of pilots, aviation executives and industry professionals to meet the needs of a fast-growing aviation industry.