RIYADH, 8 May 2008 — Under a Saudi-Malaysian pact, the Kingdom plans to build a $426 million worth dockyard at the Islamic Port in Jeddah that will be able to store 2 million containers, Minister of Transport Dr. Jabara Al-Seraisry told delegates at the Euromoney Conference, which concluded here yesterday.
Speaking on the final day of the conference, which was attended by more than 1,000 local and foreign delegates, the minister said this would be the third major dockyard to be constructed in the Kingdom. He added that it would be larger than the others, and would have better loading and unloading facilities.
Al-Seraisry said that the project will be on a build, operate and transfer (BOT) basis, and is expected to begin soon. “Port industry is a specialized industry in the Kingdom and we have introduced regulations for local investors to tie up with foreign partners who have necessary experience and technology in the field,” the minister said, adding that such collaboration have proven to be successful in the management and operation of ports in the Kingdom.
He added that a Chinese specialized company is currently studying the design and construction of the Kingdom’s ninth port at Ras Azzur in the Eastern province at a cost of $586 million.
“It will be a great priority for the government since it would facilitate the mining industry in the region. There will be plenty of more opportunities for foreign companies that have the expertise in the relevant field,” he added. Al-Seraisry said that under the proposed land bridge project, which will link the east and the west coast via Riyadh, trains would carry 8 million metric tons of goods by the end of 2015. “A total of 700,000 compartments will be built for the trains that would commute in the 1150km long rail line,” he said, adding that the project will reduce the number of road users and would enable passengers to travel at ease. “Our aim is to reduce the use of private cars on the road.”
Public Pension Agency Governor Mohamed Kharashi said that the SR100 million Pioneer Investment Fund would soon be made a public company with limited shareholders.
The company has various profit sharing projects worth SR3 million in the Kingdom. They include projects such as the King Abdullah Financial City in Riyadh and a few projects in the holy cities of Makkah and Madinah.
Padriac Fallon, chairman of Euromoney Conference, said that the event was more successfull than the previous one two years ago. “There was a huge response from the world business community,” he said.
Evaluating its success, Fallon said the Kingdom gave a clear message to foreign investors about the opportunities it offers to both local and foreign investors, and explained how it would benefit both the government and its people. Predicting that there will be more inflation likely in the future, he said, “Saudi Arabia is taking the right steps to curb inflation which I hope would bear fruits in the near future through the implementation of its planned programs.”
He pointed out that the country is fast developing in recent years, which is clearly indicated by the presence of 20 commercial banks, 50 investment companies and 14 insurance companies, most of which have sprung up lately.