The Saudi Ports Authority-Mawani has recently entered into a contract with Saudi Global Ports-SGP to construct a comprehensive logistics park in Dammam, which will probably require a total investment of roughly SAR1 billion, which equates to $266 million.
Saudi Global Ports (SGP) runs two container terminals at King Abdulaziz Port in Dammam. This port happens to be a joint venture between the Saudi Public Investment Fund, the Singaporean firm PSA International, as well as Al Balagaa Group.
Mawani states that the park has been specifically created to provide a wide range of logistical services as well as innovative solutions, with an emphasis on incorporating environmentally friendly practices and systems. The facility consists of warehouses and yards that are fully equipped to store and handle different kinds of dry and refrigerated goods.
Furthermore, the park includes a dedicated bound and re-export area that is specifically designed for organising, distribution activities, and various value-added services, as pointed out.
The agreement was signed by Mawani President Omar Hariri as well as Saudi Global Ports Company CEO Edward Tah.
Hariri has gone on to confirm that the establishment of this new logistics park is a crucial component of the Mawani initiative, which aims to increase the number of logistics parks in Saudi ports to a total of 12.
A leader in the field of logistics
The expansion is expected to improve the kingdom’s ranking on the global logistics services achievement index, moving it from the present 38th place to 10th place. In addition, this will further strengthen its standing as a regional leader in the field of logistics.
Al Jasser, who also happens to be the Chairman of the Board of Directors of Mawani, said that this current agreement falls within the purview of both the local and international private sectors.
The goal of these investments is to set up several powerful logistics zones. These zones will improve the effectiveness of the logistics sector, enhance service quality, boost the number of goods handled, and lead to additional employment opportunities.
The aim of this initiative is to enhance the logistics sector’s role in promoting the national economy and strengthen the kingdom’s place as a global logistics hub that links three continents. This is in line with the National Strategy for Transport as well as Logistics Services and Vision 2030.
Al Jasser pointed out the significance of the contracts that have been enacted with the private sector in the last two years. These contracts aim to enhance and grow investments in logistics areas, which clearly shows the appeal of Saudi ports and the overall Saudi logistics sector.
Promoting economic growth through driving
Additionally, they highlight the immense and exciting possibilities within this critical sector, which serves a significant role in stimulating economic growth and attaining equitable growth.
One important achievement of ‘Mawani’ is its success in drawing both national and international investments, in addition to major logistics companies. This has been made feasible through the signing of multiple agreements to establish a total of 11 logistics zones.
The strategic locations for these zones involve the Jeddah Islamic Port, King Fahd Industrial Port in Yanbu, and King Abdulaziz Port in Dammam. The combined investment for these projects is close to $1.12 billion.
The minister stated that this substantial investment will not only result in the development of over 13,000 direct and indirect jobs in the logistics sector, but it will also likely promote a significant economic revival.