| DP WORLD WINS BID TO DEVELOP JEDDAH PORT |
In a landmark move, Saudi Arabia awarded to UAE’s DP World the contract to develop and operate the container terminals at Jeddah Islamic Port.
The South Container Terminal (SCT) at Jeddah Islamic Port is a crucial link in the world’s busy east-west trade routes through the Red Sea and catering to a rich domestic cargo base. Jeddah Islamic Port is the main import destination for Saudi Arabia, handling 59% of its imports by sea and serving its main commercial centres.
One of the world’s largest port operators, DP World has invested considerable resources to boost the port’s ability to handle the new generation of mega containerships.
The new 30-year, build-operate-transfer contract by the Saudi Ports Authority will see DP World investing up to USD 500 million to improve and modernise the Jeddah port, including major infrastructure development to enable the facility to serve ultra-large container carriers (ULCCs).
“Developing Jeddah Islamic Port will contribute to achieving Saudi Vision 2030 as the project is considered a key milestone towards achieving the targets of the National Industrial Development and Logistics Vision Realization Program, one of the Vision’s major initiatives,” according to DP World.
The concession will also be instrumental in facilitating the smooth and efficient movement of cargo and greater access to local and international markets. DP World has operated the South Container Terminal on a lease agreement for more than 20 years.
As the main trade destination for Saudi Arabia and one of the kingdom’s major port privatisation projects, the new terminal will also have an upgraded capacity of 3.6 million TEU (twenty-foot equivalent units) up from 2.4 million TEU, to meet the expected growth demands of the future. It will also generate 1,400 jobs.
“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,” according to Sultan Ahmed Bin Sulayem, DP World Group chairman and CEO.
“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.”
In December, the General Authority of Civil Aviation (GACA) also awarded an operational license for ground services to SAL, the Saudi Logistics Services Company. The new logistical entity will be the main gateway for freight and ground handling services in the kingdom.
MEGAPROJECTS IN TRANSPORT
The privatisation and streamlining of operations are part of a major push by Saudi authorities to engage the private sector in large transportation projects.
"Saudi Arabia has an impressive transportation and logistics infrastructure, where about SAR 400 billion (USD 106.7 billion) have been invested in the last 10 years only. The plan is to continue investing while increasing private sector participation," the kingdom’s transport minister Saleh bin Nasser Al-Jasser told Reuters.
The new projects will include the expansion of Riyadh's airport, along with five other regional airports, apart from a railway project linking Dammam in the Eastern Province to the Red Sea city of Jeddah through the capital.
"The funding will come through the private sector, either through PPP or government-to-government...these are big projects worth tens of billions of riyals," Jasser said.
BNC Network, a construction research firm, estimates there are 561 transport projects valued at USD 288 billion proposed and under way in the kingdom.
GACA also began trial operations of the new airport at Arar, the capital of Northern Borders Province in December. The airport received its first arrival and departure flights at the new airport terminal from the capital city of Riyadh through Saudi Arabian Airlines.
When fully operational, the airport will be able to handle more than a million passengers and receive 10,000 flights each year.
GACA is also boosting operations at Prince Naif bin Abdulaziz International Airport in Al-Qassim Region, Prince Abdulmohsen bin Abdulaziz International Airport in Yanbu, Hail International Airport and Taif International Airport, and Sharurah Airport in Najran.
“This step was taken by GACA in the context of its keenness to improve services in all airports around the kingdom to be friendly airports for people with disabilities,” according to the Saudi Press Agency.
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