DP World and the Saudi Ports Authority (Mawani) have entered into a 30-year agreement, with a reported investment value of more than US$130 million, to build a new Logistics Park at Jeddah Islamic Port.
The new facility will cover around 415,000 m2 and will include an inland container depot capacity of approximately 250,000 TEU and warehousing storage space of 100,000 m2. Future expansion could further increase this storage space to 200,000 m2.
The port-centric Logistics Park is expected to boost Jeddah Islamic Port’s re-export activities, reducing the time and cost of logistics for importers and exporters alike. According to a DP World statement, the project will provide an integrated platform of services that link port operations with last-mile activities, providing temperature-controlled storage for cargo, in addition to processing, labelling, fulfilment, consolidation and de-consolidation.
Commenting on the announcement, His Excellency Omar Hariri, the President of The Saudi Ports Authority, said: “The park will provide advanced and eco-friendly e-services by integrating the operations of the South Container Terminal with the new logistics park. It will also contribute to raising the quantities of transshipped goods, in line with the national strategy for transport and logistics services.”
DP World signed a new concession agreement with Mawani in April 2020 to continue operating and managing the South Container Terminal at the Jeddah Islamic Port for the next 30 years, committing to invest a total of more than US$800 million, to expand and modernise the terminal. The project, which will take place over four phases and is set to be completed by 2024, will feature a number of infrastructural upgrades, including the design of the alongside draft and the installation of advanced equipment and technologies, automation and digitalisation programmes, in addition to decarbonisation initiatives.
When complete, the revamped terminal will double Jeddah Islamic Port’s container handling capacity from 2.5 million TEUs currently to 4 million TEU annually.