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AP Moller – Maersk has signed an agreement with Saudi Ports Authority (Mawani) to invest US$136 million over a period of 25 years for the establishment of an Integrated Logistics Park at the Jeddah Islamic Port in Saudi Arabia.

Spread over an area of 205,000m², the greenfield project will be the first of its kind at the Saudi Arabian port to offer solutions aimed at the connection and simplification of the supply chains of importers and exporters in the country.

The Integrated Logistics Park at Jeddah Islamic Port will offer customers an extensive infrastructure for warehousing and distribution (W&D) and cold storage while it will also serve as a hub for transhipments, petrochemical consolidation, air freight and LCL (less than container load) cargo.

The bonded and non-bonded warehousing & distribution (W&D) facility will cover more than 70% of the total area while the remaining part will act as a hub for transhipment, air freight and LCL cargo.

The W&D part will have several different sections to accommodate general warehousing including food and beverages, furniture, automobiles, chemicals, textile, apparel, machinery, appliances and electronics, as well as cold chain storage such as fruits and vegetables.

The facility is estimated to handle annual volumes of approximately 200,000TEU in total and will also have a dedicated e-commerce fulfillment centre, according to a statement.

The Minister of Transport, Engineer Saleh bin Nasser Al-Jasser, said, “The signing of this agreement will be a remarkable milestone in strengthening the Kingdom’s position regionally and globally and will contribute to transforming the Kingdom into a leading global center in the field of transportation and logistics services.”

“The authority’s new strategy supports the maritime transport journey in the Kingdom and enables the authority to continue developing a sustainable and prosperous maritime transport system that supports the Kingdom’s social and economic ambitions and contributes to achieving the ambitious goals of Vision 2030,” he added.

Saudi Arabia’s Vision 2030, aiming at more than tripling the share of non-oil exports from its current levels to reach 50% of its total exports, lays great importance in capitalising the country’s location to build its role as an international trade driver connecting the continents of Africa, Asia and Europe.

Furthermore, Maersk will also invest in renewable energy to power the facility and achieve carbon neutrality, with the project expected to create more than 2,500 jobs in Saudi Arabia.

The warehouses, cold storage, office buildings and machines will be powered with renewable solar energy, while there will be implemented a warehouse management system for digital solutions that will enable efficient inventory management and track & trace for higher visibility and deeper insights, according to a statement.

Richard Morgan, Managing Director of Maersk West & Central Asia, said that the innovative, digital and technologically-advanced logistics infrastructure will create value for customers in the region.

“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,” he pointed out.

The Minister of Transport, Engineer Saleh bin Nasser Al-Jasser, said, “The signing of this agreement will be a remarkable milestone in strengthening the Kingdom’s position regionally and globally and will contribute to transforming the Kingdom into a leading global center in the field of transportation and logistics services.”

“The authority’s new strategy supports the maritime transport journey in the Kingdom and enables the authority to continue developing a sustainable and prosperous maritime transport system that supports the Kingdom’s social and economic ambitions and contributes to achieving the ambitious goals of Vision 2030,” he added.

Saudi Arabia’s Vision 2030, aiming at more than tripling the share of non-oil exports from its current levels to reach 50% of its total exports, lays great importance in capitalising the country’s location to build its role as an international trade driver connecting the continents of Africa, Asia and Europe.

Furthermore, Maersk will also invest in renewable energy to power the facility and achieve carbon neutrality, with the project expected to create more than 2,500 jobs in Saudi Arabia.

The warehouses, cold storage, office buildings and machines will be powered with renewable solar energy, while there will be implemented a warehouse management system for digital solutions that will enable efficient inventory management and track & trace for higher visibility and deeper insights, according to a statement.

Richard Morgan, Managing Director of Maersk West & Central Asia, said that the innovative, digital and technologically-advanced logistics infrastructure will create value for customers in the region.

“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,” he pointed out.

The agreement was signed by the President of the Saudi Ports Authority, Omar bin Talal Hariri, and the Managing Director of Maersk Saudi Arabia, Mohammad Shihab.

The President of the Saudi Ports Authority, Omar bin Talal Hariri noted, “It is an important step to achieve our ambition for Jeddah Islamic Port to become among the top ten ports in the world by 2030, with the volume of container handling reaching 18 million TEU.”

Currently, Jeddah Islamic Port is the country’s busiest port, handling over 5 million TEU.

Source: Container News