DP World wins 30-year concession for terminal at Jeddah Islamic Port
The ports operator will manage the Jeddah Southern Container Terminal and handle its infrastructure development works
The Saudi Ports Authority (Mawani) has awarded global ports operator DP World a 30-year build-operate-transfer (BOT) concession for the management and development of the Jeddah Southern Container Terminal at Saudi Arabia’s multi-purpose Jeddah Islamic Port.
The ports operator will invest up to $500m (AED1.84bn) as part of the agreement to improve and modernise the Jeddah Islamic Port, which includes major infrastructure developments that will enable the port to serve ultra-large container carriers (ULCC’s) – the world’s largest mega containerships.
The Southern Container Terminal will upgrade its capacity to 3.6 million TEUs, up from 2.4 million TEUs, and will provide 1,400 jobs.
DP World has operated the South Container Terminal on a lease agreement for more than 20 years.
The concession will be instrumental in facilitating the movement of cargo and improve access to local and international markets.
The Jeddah Islamic Port, which was established in 1976, is on the Red Sea coast and is the largest port in the Kingdom of Saudi Arabia with annual volumes of over 6 million TEUs.
As a link on the busy east-west trade route and as one of the Kingdom’s main commercial centres, the port currently handles approximately 60% of the nation’s sea-imports.
The development of the Jeddah Islamic Port is also in line with the Saudi Vision 2030 as the project is considered a key milestone towards achieving the targets of The National Industrial Development and Logistics Vision Realization Programme, one of the Vision’s primary initiatives.
With up to a $500m investment, DP World’s signing of a 30-year concession at Jeddah Islamic Port will spearhead the KSA’s transformation into a focal point of global trade. Together we look forward to playing a key role in achieving Saudi Vision 2030: https://t.co/k1dxZCYznF pic.twitter.com/i5bKsDRf5j— DP World (@DP_World) December 23, 2019
Commenting on the 30-year concession, the group chairman and chief executive officer of DP World, Sultan Ahmed Bin Sulayem, said: “We have committed to investing significantly to modernise the Jeddah South Container terminal, which will not only result in greater direct and indirect job creation but also deliver best-in-class efficiency and productivity to the Port’s operations.”
Bin Sulayem added: “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. 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.”
In line with DP World’s mission to transform container terminal operations through technology driven innovation, the South Container Terminal is projected to provide fully commissioned smart services that ensure transparency of transactions and greater facilitation of trade.
The ceremony to ink the BOT concession at the Jeddah Islamic Port was attended by the group chairman and chief executive officer of DP World, Sultan Ahmed Bin Sulayem; the Makkah Acting Governor, HRH Prince Badr bin Sultan bin Abdul Aziz Al Saud; Minister of Transport and Mawani’s Chairman of the Board, HE Engineer Saleh bin Naser Al Jasser; the Minister of Industry and Mineral Resources, HE Bandar Alkhorayef; the President of Mawani, HE Saad Al Khalb; and the UAE Ambassador, HE Sheikh Shakbout bin Nahyan Al Nahyan.