Top officials sign the deal on Sunday.
Staff Reporter, Gulf Today
In a move that highlights the deep bonds and strengthening ties between the UAE and Saudi Arabia and underscores Dubai’s keenness to share its expertise and experience to boost regional development, DP World and the Saudi Ports Authority (Mawani) on Sunday signed a 30-year agreement to build a state-of-the-art, port-centric Logistics Park at the Jeddah Islamic Port.
Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, congratulated DP World and the Saudi Ports Authority (Mawani) on concluding an agreement to build a state-of-the-art, port-centric Logistics Park at the Jeddah Islamic Port with investments of Dhs490 million. Sheikh Hamdan affirmed that under directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Dubai is always ready to employ its expertise to support Saudi Arabia’s development ambitions.
Sheikh Hamdan tweeted: “We congratulate DP World and Saudi Arabia’s Mawani on concluding an agreement to build a state-of-the-art logistics park at the Jeddah Islamic Port with investments of Dhs490 million. We are pleased to contribute to fulfilling the Saudi Vision 2030 with a project that promotes the commercial growth of the Kingdom and the region.” “It is a fresh step within the prosperous Emirati-Saudi partnership. Under the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, we are always ready to employ Dubai’s expertise to support the development aspirations of our brothers in the Kingdom, which is wished to make further progress under the leadership of the Custodian of the Two Holy Mosques and the follow-up of my brother Prince Mohammed Bin Salman.”
The agreement, with an investment value of more than Dhs490 million ($133.4 million), aims to establish a 415,000 square-metre logistics park with an in-land container depot capacity of 250,000 TEUs (Twenty-foot Equivalent Units) and a warehousing storage space of 100,000 square metres. Future expansions could increase the storage space to 200,000 square metres.
The agreement was signed under the patronage of Eng. Saleh bin Nasser Al-Jasser, Saudi Arabia’s Minister of Transport and Logistic Services and Chairman of Mawani.
The signing ceremony was attended by Omar Bin Talal Hariri, President of Mawani; Sheikh Nahyan Bin Saif Al Nahyan, UAE Ambassador to the Kingdom of Saudi Arabia; Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World; Mohammad Alshaikh, CEO DP World Saudi Arabia; and a delegation of senior Saudi government officials as well as representatives from DP World’s leadership team.
The purpose-built logistics park will expand DP World’s regional footprint and bring pioneering multi-modal logistics solutions to the Kingdom of Saudi Arabia.
The port-centric park will boost Jeddah Islamic Port’s re-export activities and reduce the time and cost of logistics for importers and exporters. It will provide an integrated service platform that links port operations with last-mile activities. It will also offer processing, labelling, fulfilment, consolidation, de-consolidation, and temperature-controlled storage for cargo.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “We are proud and honoured to contribute effectively towards the achievement of Saudi Vision 2030. The strategic Vision 2030 framework includes the development of a prosperous and sustainable maritime transportation ecosystem that supports the Kingdom’s socio-economic ambitions and consolidates its status as a global logistics hub. On this occasion, we reiterate our commitment to investing in the modernisation of this facility by providing the highest standards of logistics services and technology-enabled trade solutions. We are confident that today’s milestone will contribute to increasing efficiency and productivity levels and creating new jobs.”
“We are committed to enhancing the role and the status of the Jeddah Islamic Port, which is strategically located on the Red Sea and has historically played a pivotal role in facilitating the movement of trade between the East and the West. As an end-to-end supply chain solutions provider, a key part of our strategy is to package logistical services for our customers and bridge existing market gaps. Facilities like this logistics park will enable us to make deeper inroads into the Kingdom by extending our collaboration with leading logistics service providers,” Bin Sulayem added.
Commenting on the announcement, Omar Hariri, President of Mawani, said: “The park will provide advanced and eco-friendly e-services by integrating the operations of the South Container Terminal with the new logistics park. The Authority’s move to develop a holistic logistics park will enhance the competitiveness of the Jeddah Islamic Port. It will also contribute to raising the quantity of trans-shipped goods in line with the national strategy for transport and logistics services.”