MAWANI, Maersk sign SAR 500 mln pact for integrated logistics park in Jeddah Islamic Port

Senior company officials at the agreement signing ceremony

Saudi Ports Authority (MAWANI) signed an agreement with A. P. Moller - Maersk, to establish an integrated logistics park in Jeddah Islamic Port, with investments of more than SAR 510 million.

The logistics park will be the largest for Maersk in the Middle East, the company said in a statement today, Oct. 31.

Saudi Minister of Transport and Logistics and Chairman of the Board of Directors of MAWANI Saleh bin Nasser Al-Jasser said that the development of the new integrated logistics park will further enhance the capabilities of Jeddah Islamic Port and contribute to consolidating the Kingdom’s position as a leading global hub for maritime transport and logistics services.

Saudi Arabia’s Vision 2030 lays great importance in capitalizing on the Kingdom’s strategic location to build its role as an integral driver of international trade connecting Africa, Asia and Europe. It further aims to more than triple the share of non-oil exports from Saudi Arabia to reach 50% of total exports from its current levels. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.

“The strategic partnership between the authority and Maersk is an important step to achieve our ambition for Jeddah Islamic Port to become among the top ten ports in the world by 2030,” said MAWANI President Omar bin Talal Hariri.

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 transshipment, air freight, and LCL cargo.

The W&D facility will feature several different sections to accommodate general warehousing (food & beverages, furniture, automobiles, chemicals, textile & apparel, and machinery, appliances & electronics) and cold chain storage (fruits & vegetables, protein, and confectionary & consumables). In addition, the facility will have a dedicated e-commerce fulfillment center.

The Integrated Logistics Park will handle annual volumes of close to 200,000 TEUs across different products, the statement said.