- JEDDAH: According to Saudi importers, port fees have been steadily increasing over the past few months to as much as current SR720 per shipment from SR120.
“There are no reasons for the fee increases as we are importing the same type of products in the same containers as in the past, but we have been forced to pay as much as SR600 extra per shipment,” Saudi businessman Mohammed Al-Shammary told Arab News.
Other businessmen upset by the unjustified fee increases have remained silent but have taken action by lodging formal complaints with the Port Authority itself.
Responding to complaints, Director General of Jeddah Islamic Port Sahir Tawlawi told Al-Madinah newspaper that they have noticed the price rises and have investigated, only to find that port operators working at the substations have been increasing fees on imports of containers of hazardous materials without authorization.
Tawlawi also said port authorities are working to take care of the problem and vowed that prices would return to their previous levels very soon.
Caught in the middle, consultants whose business it is to handle paperwork and other duties are urging port officials to act quickly before harm is caused to their businesses and those of Saudi importers as a result of the higher fees.
“The fee increases will ultimately affect our business with Saudi businessmen importing goods, causing a lack of trust and increased costs that will end in higher prices of goods for consumers,” said Zager Al-Sheikh, a consultant at the Jeddah seaport.
An official at the port who wished to remain anonymous told Arab News that the operators who have been found guilty of unjustified price increases will be reprimanded.
He added some of the reasons why operators decided to increase fees, especially on containers of hazardous materials, was due to the added care and procedures needed in handling the shipment as well as the increase in the shipping of petrochemicals and other materials as a result of the increase in construction and infrastructure projects taking place across the country.
Commenting on any current backlog at the port, the source confirmed there is “no container capacity” and that Jeddah port officials are keen on eliminating this problem for good by going ahead with current expansion plans.



