Maersk Saudi Arabia to Set up the First Integrated Logistics Park at Jeddah Islamic Port

Maersk has announced that it has signed an agreement with Saudi Ports Authority ‘Mawani’, committing to an investment of SAR 510 million over 25 years to set up an Integrated Logistics Park at the Jeddah Islamic Port in Saudi Arabia.

The 205,000m² greenfield project will be the first of its kind at the Jeddah Islamic Port, offering a variety of services aimed at connecting and simplifying the supply chains of importers and exporters in the Kingdom. Maersk will also make significant investments in renewable energy to power this plant and attain carbon neutrality in the long run. More than 2,500 direct and indirect jobs are estimated to be created in Saudi Arabia as a result of the project.

With over five million Twenty-foot Equivalent Units (TEUs) of containers flowing in and out of Jeddah Islamic Port, it is the largest port in terms of volume and cargo handling in Saudi Arabia and the second largest in the GCC. Over 2.5 million TEUs tranship through it every year. The port is also connected through a comprehensive road and rail network.

The bonded and non-bonded warehousing and distribution (W&D) facility will cover more than 70% of the total area

The bonded and non-bonded warehousing and 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. W&D will have 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). To cater to the rapid penetration of eCommerce in the Kingdom, 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 Integrated Logistics Park will be able to handle annual volumes of close to 200,000 TEUs

Maersk will introduce a cutting-edge warehouse management system that incorporates modern technologies and digital solutions for efficient inventory management, unit-level track and trace, and rich dashboards for more visibility and deeper insights. These systems will aid in boosting efficiencies and give Maersk’s customers a cost-competitive advantage.

Maersk is also planning to make the facility carbon-neutral in the long run. Solar energy will be used to power the warehouses, refrigerated storage, and office buildings. Yard machinery, such as forklifts, reach stackers, empty container handlers, trucks, and other vehicles used for cargo movement, will all be electric.