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The Saudi Ports Authority (MAWANI) has agreed on a long-term deal with shipping giant Bahri to build and operate an integrated logistics park on land leased at the Jeddah Islamic Port.
The agreement was signed Tuesday by President of MAWANI Omar Talal Hariri and Bahri CEO Abdullah Ali Aldubaikhi, in the presence of senior officials from both sides.
Hariri stated that launching this project forms a core part of the initiatives to achieve the objectives of the National Transportation and Logistics Strategy (NTLS), which envisions setting up similar logistics zones within and beyond Saudi ports.
He noted that it aims to empower the Kingdom’s bid to become a global logistics hub and provide world-class logistics services to accelerate economic development and enable overall transformation in line with Vision 2030.
Aldubaikhi expressed his delight at signing the deal, which is expected to boost his company’s partnership with MAWANI in the pursuit of developing the Kingdom’s logistics services and consolidating its stature as a global hub that links three continents.
“Leveraging Jeddah Islamic Port’s strategic location, this agreement will further expand Bahri’s import, transport, distribution, and storage capabilities and help the company raise the level of its services according to international standards,” said the CEO.
“We constantly strive to be a responsible business that builds sustainable capabilities and offers solutions that meet the exact needs of our partners.”
Bahri will manage operations at the state-of-the-art facility for a duration of 20 years.
The logistics zone will provide storage and handling services for all types of inbound and outbound shipping containers owned by Bahri and other entities.
It will be capable of storing reefer, insulated, and dry containers with services like container maintenance and repair, container cleaning, bonded storage, and haulage available to clients at any given point.
Jeddah Islamic Port leads the Kingdom’s ports in terms of imports and exports, besides being a Red Sea re-export hub as 75 percent of the total incoming trade and transshipment traffic at Saudi ports takes place through this important trade gateway.
The Port is equipped with 62 berths and four terminals, and MAWANI is all geared in its drive to position it amongst the top ten globally.
Efforts are underway to expand the Port’s capacity and upgrade its operations with the help of development projects and concessions.
A recent concession worth SR9 billion was awarded to DP World for 30 years to improve the operational efficiency of the Port’s container terminals and raise its capacity by 70 percent to handle more than 13 million units.
MAWANI signed a similar deal with Maersk Saudi Arabia to establish an integrated logistics park at the Jeddah Islamic Port.
The park is set to be the company’s largest in the Middle East and enhance the Port’s exceptional operational capabilities and value-added services.