Saudi Ports Authority (MAWANI) has signed an agreement with A. P. Moller – Maersk, a global integrator of container logistics, committing to an investment of SAR 510 million over 25 years to set up an Integrated Logistics Park at Jeddah Islamic Port.
The signing took place in the presence of His Excellency the Minister of Transport and Logistics, Chairman of the Board of Directors of Saudi Ports Authority, Engineer Saleh bin Nasser Al-Jasser, and Richard Morgan, Managing Director Maersk West & Central Asia, together with several officials from related sectors. The agreement was signed by His Excellency the President of the Saudi Ports Authority, Mr Omar bin Talal Hariri, and the Managing Director of Maersk Saudi Arabia, Mr Mohammad Shihab.
Spread over an area of 205,000m2, the greenfield project will be the first of its kind at Jeddah Islamic Port, offering an array of solutions to connect and simplify the supply chains of importers and exporters in the Kingdom. Maersk will also be investing heavily in renewable energy to power the facility and eventually achieve carbon-neutrality. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.
Spread over an area of 205,000m2, the greenfield project will be the first of its kind at Jeddah Islamic Port
A vision for the future
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 the continents of Africa, Asia and Europe. Vision 2030 aims to more than triple the share of non-oil exports from Saudi Arabia from its current levels, to reach 50% of total exports. It also seeks to substantially raise the Kingdom’s global ranking in the Logistics Performance Index to ensure that Saudi Arabia becomes the regional leader in logistics.
Commenting on the signing of the agreement, His Excellency the Minister of Transport, Saleh bin Nasser Al-Jasser, said: “We are pleased to enter into this agreement today, which represents another remarkable milestone in strengthening Saudi Arabia’s position on the regional and global stage. 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.”
Richard Morgan, Managing Director, Maersk West & Central Asia said: “We are building an innovative, digital and technologically-advanced logistics infrastructure on the foundations of our strong network of global shipping and logistics services to create value for customers in the region. Our ambition is not only to connect and simplify our customers’ supply chains but also be a catalyst in the growth of trade and economies through our customer-centric solutions”.
The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia
His Excellency Omar bin Talal Hariri, President of the Saudi Ports Authority, said: “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.
I am confident that this partnership will greatly enhance the distinguished operational capabilities of Jeddah Islamic Port, which ranks first among the Red Sea ports due to its strategic location linking the international shipping route between East and West.” He added, “MAWANI’s new strategy enables the authority to continue developing a sustainable and prosperous maritime transport ecosystem that supports the Kingdom’s social and economic ambitions and contributes to achieving the ambitious goals of Vision 2030.”
A truly integrated logistics solution for all
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 transhipment, air freight, and LCL cargo. The W&D facility will feature several different sections to accommodate general warehousing (food and beverages, furniture, automobiles, chemicals, textile & apparel, and machinery, appliances and electronics) and cold chain storage (fruits and vegetables, protein, confectionary and consumables). To cater to the rapid penetration of eCommerce in Saudi Arabia, the facility will also have a dedicated eCommerce fulfilment center. The Integrated Logistics Park will be able to handle annual volumes of close to 200,000 TEUs across different products.
“The vision for the Kingdom to diversify its economy beyond the oil sector is an important one to enable long-term growth for Saudi Arabia. At Maersk, we not only believe in this vision but are also committed to play a role by upgrading the logistics infrastructure through our integrated offering, thus opening more avenues for traders in Saudi Arabia”, said Mohammad Shihab, Managing Director, Maersk Saudi Arabia.
The bonded and non-bonded Warehousing & Distribution (W&D) facility will cover more than 70% of the total area
Future-proofing through advanced technology and renewable power
Maersk will deploy a state-of-the-art warehouse management system that implements modern technologies and digital solutions for efficient inventory management and 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.
Maersk is also charting its path to eventually make the facility carbon-neutral. The warehouses, cold storage and office building will all be powered with renewable solar energy. Even the yard machinery including forklifts, reach stackers, empty container handlers, trucks and other vehicles deployed for the movement of cargo will be electric.
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