Mawani, Maersk lay foundation stone for SAR 1.3 bln Integrated Logistics Park

Foundation stone laying ceremony

Saudi Ports Authority (Mawani) and AP Moller-Maersk laid the foundation stone for the company's largest integrated logistics park in the Middle East, at Jeddah Islamic Port.

With investments amounting to SAR 1.3 billion, the Integrated Logistics Park provides more than 2,500 direct and indirect jobs, Mawani said in a statement.

The greenfield project spread over an area of 225,000 square meters (sqm) will offer a wide range of clean logistics solutions to connect and facilitate supply chains. It will handle annual volumes close to 200,000 twenty-foot equivalent units (TEUs) from diverse products.

The work is expected to be complete by Q1 2024; the statement added.

The logistics park includes storage and distribution zones that accommodate exports and imports of general commodities, and, warehouses for refrigerated food products. In addition, it will have a hub for transshipment, air freight, and less than a container load (LCL) cargo, and an e-commerce implementation center with high-density storage and mechanical solutions.

It works using renewable energy, aiming to decarbonize logistics services and achieving net zero by 2040. It will be fully operated by solar energy generated from solar panels on the roofs, distributed over 65,000 sqm. In addition, it will depend on electric trucks to reduce emissions.

Maersk will deploy state-of-the-art warehouse management system that implements modern technologies and digital solutions for efficient inventory management, track and trace at unit-level and offers rich dashboards for higher visibility and deeper insights. These systems will help in improving efficiencies and build a cost competitive edge for Maersk’s customers.

Mawani indicated that the logistics park reflects its initiatives launched with the aim of developing and offering investment opportunities in logistical zones for the private sector, and boosting the number of logistical zones that include re-export to 30 by 2030.

According to data compiled by Argaam, Mawani and Maersk signed in October 2021 an agreement to establish the largest integrated logistics park for Maersk across the Middle East at Jeddah Islamic Port, with investments by Maersk exceeding SAR 500 million.