Dubai-based DP World has been awarded a 30-year concession by the Saudi Ports Authority (Mawani) for the management and development of the Jeddah South Container Terminal at Jeddah Islamic Port.
Under the build-operate-transfer (BOT) agreement, DP World will invest up to $500 million to modernise the port, including major infrastructure development to enable it to serve the ultra-large container carriers (ULCCs).
Jeddah Islamic Port is on the Red Sea and the largest port in Saudi Arabia with annual volumes of over 6 million TEUs.
Developing Jeddah Islamic Port will contribute to achieving Saudi Vision 2030. The concession will also be instrumental in facilitating the movement of cargo and greater access to local and international markets.
DP World has operated the South Container Terminal on a lease agreement for more than 20 years.
The new terminal will also have an upgraded capacity of 3.6 million TEU up from 2.4 million TEU, to meet the expected growth demands of the future, and will provide 1,400 jobs.
Sultan Ahmed Bin Sulayem, DP World group chairman and CEO, said: “DP World is honoured to support the kingdom’s 2030 growth vision through this new concession to transform the country into a global logistics hub. 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.”
He added: “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, which should support further growth in this strategic hub that connects East-to-West.”
Source:https://www.arabianbusiness.com/transport/436058-dubais-dp-world-set-to-invest-500m-in-jeddah-port-upgrade