Port authorities plan to spend SR 3.43 billion on development

Port authorities plan to spend SR 3.43 billion on development
Updated 17 June 2013

Port authorities plan to spend SR 3.43 billion on development

Port authorities plan to spend SR 3.43 billion on development

With traffic continuing to rise at all of the Kingdom's major seaports, the Saudi Ports Authority (SPA) and King Abdul Aziz Port plan to spend SR 3.43 billion ($ 914 million) on port development in the Saudi Arabia.
Among these developments is a SR 615 million ($ 164 million) plan that includes a SR 191.3 million ($ 51 million) power plant to be constructed at King Abdul Aziz Port in Dammam to boost power generation capacity from 50 megawatts to 120 megawatts.
As well, a new container terminal at a cost of SR 172.5 million ($ 46 million) will be built in Dheba Port, with two others to be constructed at King Fahd Industrial Port in Jubail at a cost of SR 142.5 million ($ 38 million), with both due for completion by 2014.
In addition, more than SR 2812.5 million ($ 750 million) is to be invested into the expansion of Dammam’s King Abdul Aziz Port, with SR 2006.25 million ($ 535 million) set aside for container terminal capacity expansion and SR 798.75 million ($ 213 million) for other facilities, following a 10 percent increase in container handling in 2012 compared to 2011 figures.
Commenting on the increase in traffic and container volume across the Kingdom, Sahir Tahlawi, general manager at Jeddah Islamic Port (JIP), said: "Growth at the Red Sea Gateway Terminal in Jeddah accounted for the handling of one million TEU in 2011 and increased to over 1.5 million TEU last year, reflecting the Kingdom's massive growth of import and exports. Overall, the SPA's development plans for all domestic seaports are an indicator that more international companies are becoming interested and doing business with the Kingdom."
He added that in addition to expanding the seaport network and container capacity, the Kingdom has also realized leisure and tourism, as a valuable economic driver and has announced plans to build a SR 101.3 million ($ 27 million) cruise and leisure vessel terminal at Yanbu Commercial Port, also under its key development plan.
As one of the Kingdom’s primary container hubs, the JIP has witnessed increased volumes by more than 25 percent, recording a 5.15 percent in growth of imports and exports in the first half of the year, rising to 3.6 million tons and an average increase of 10.9 percent per annum forecast through 2016.
According to data from the SPA, the Kingdom's ports handled 16,264,525 tons of cargo last month, with the total for 2013 at 75,172,657 tons, excluding oil.