TRANSPORT

Saudi Ports Authority (Mawani) and Maersk Saudi, a unit of global ports giant Maersk, are developing an integrated logistics park at the Jeddah Islamic Port.

Spanning an area of 205,000 square metres, Maersk’s Integrated Logistics Park will provide shippers with an extensive infrastructure for warehousing and distribution, cold storage, and e-commerce. It will also serve as a hub for transshipment cargo, petrochemical consolidation, and air freight.

“We are building an innovative, digital and technologically advanced logistics infrastructure on the foundations of our strong network of global shipping and logistics services to create value for customers in the region,” said Richard Morgan, managing director, Maersk West and Central Asia. “Our ambition is not only to connect and simplify our customers’ supply chains, but also be a catalyst in the growth of trade and economies through our customer-centric solutions.”

The project is part of Jeddah Islamic Port’s strategy to become one of the Top 10 ports globally by 2030, according to Omar bin Talal Hariri, president of Mawani.

“Mawani’s new strategy enables the authority to continue developing a sustainable and prosperous maritime transport ecosystem that supports the kingdom’s social and economic ambitions and contributes to achieving the ambitious goals of Vision 2030,” the Mawani president said.

Around 70% of the area will be allocated for the bonded and non-bonded warehousing and distribution (W&D) facility, while the remainder will be for transshipment, air freight, and cargo facilities.

“The W&D facility will feature several different sections to accommodate general warehousing (food and beverages, furniture, automobiles, chemicals, textile and apparel, machinery, appliances and electronics) and cold chain storage (fruits and vegetables, protein, and confectionary and consumables),” the companies said.

The facility will also cater to the rapid growth of online commerce in the kingdom, and serve as a dedicated e-commerce fulfilment centre.

Overall, the integrated park will have the capacity to handle 200,000 TEUs annually.  

Mawani is also in talks with a number of other shippers to expand Saudi ports’ service offerings.

In recent months, Mawani’s Hariri has held meetings with top 15 national and global shipping lines to explore the latest developments in the maritime transport sector, shape strategic plans for the growth of the country’s seaports, boost operational processes, and promote the ports’ services.

These shipping lines include Bahri, Cruise Saudi, Hapag-Lloyd, Maersk, CMA-CGM, Evergreen Marine, Ocean Network Express (ONE), COSCO Shipping Lines, Pacific International Lines (PIL), Yang Ming Marine Transport Corporation, Hyundai Merchant Marine (HMM), Mediterranean Shipping Company (MSC), Orient Overseas Container Line (OOCL), Wan Hai Lines, and Nippon Yūsen Kabushiki Kaisha (NYK Line).

As part of the National Transport and Logistics Strategy, the kingdom is looking to attract SAR 550 billion (USD 150 billion) of investment in the transport and logistics sector, with the government providing 35% of the funding, and the rest being financed by the private sector.

The kingdom has set an annual capacity target of over 40 million containers, including the associated value chain investments. It also aims to develop port infrastructure, enhance integration with logistics zones, expand connectivity with international shipping routes, and integrate these with all rail and road networks.

The maritime industry extends beyond commercial ports to the fast emerging leisure and recreational industry.

In November, Mawani signed an agreement with Cruise Saudi and Globe Group to build a new cruise terminal at King Abdulaziz Port in Dammam, in addition to developing four berths at King Abdulaziz Port in Dammam and Yanbu Commercial Port.

The new terminal will expand the country’s cruise traffic along the coastlines of the Arabian Gulf and the Red Sea, and add another dimension to the country’s burgeoning tourism infrastructure.

“This agreement further elevates Saudi Arabia’s position as a leader in the cruise industry and enhances the visitor experience for guests in the kingdom,” Mawani president Hariri said.

“We will continue to work together with our partners to develop a sustainable, thriving marine transport ecosystem that contributes to the competitiveness of Saudi Arabia’s ports, supports the kingdom’s socio-economic aspirations, and helps to achieve the ambitions of Vision 2030."

Earlier this year, Mawani and Cruise Saudi opened the first cruise terminal at Jeddah Islamic Port, with MSC Bellissima setting sail on its maiden voyage to regional destinations at the end of July.

The cruise initiative dovetails with the kingdom’s major west coast projects along the coastline, such as NEOM and The Red Sea Development.