In an effort to boost Jeddah’s port position as a leader in the Middle East, Saudi Arabia signed five contracts that would spur its economic growth considering the fact that transport – whether by land, air, or sea – is its key factor and an important part of government policy is based on the logistics of moving goods and people.
Following a similar deal with Maersk to create their largest logistics park in the Middle East in Jeddah, MAWANI, the Kingdom’s Saudi Ports Authority, signed a deal to create a new logistics park in Jeddah Islamic Port with DP World.
DP World, under the deal, will invest over SR500 million ($133 million) to create a logistics park that will handle 250,000 TEU containers over an area of 205,000 square meters. It will also have a warehouse area of over 100,000 square meters.
The Saudi minister of Transportation and Logistics Saleh Al-Jasser commented on the deal stressing that Saudi Arabia is working very hard to implement its national transportation and logistics strategy that aims to transform the Kingdom into a global logistics hub.
Last year, MAWANI has signed an agreement with Danish shipping giant Maersk to set up an Integrated Logistics Park at the Jeddah Islamic Port that will offer a range of solutions to connect and simplify the supply chains of importers and exporters in Saudi Arabia.
Maersk has committed to invest $136 million over a period of 25 years for infrastructure for warehousing and distribution, cold storage, and e-commerce. The park would also serve as a hub for air freight, transshipments, petrochemical consolidation, and less than container load cargo.
The first of its kind at the Jeddah Islamic Port, this greenfield project will be spread over an area of 205,000 square meters and is expected to create more than 2,500 direct and indirect jobs.
The Danish shipping giant will also invest heavily in renewable energy to power the park and eventually achieve carbon-neutrality.
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