Saudi port set for buoyant future as mega container hub

Mawani and SGP have worked closely on various activities including manpower retention, transfer of assets, and engagement of the port community. (Shutterstock)
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Updated 06 October 2020

Saudi port set for buoyant future as mega container hub

  • Management deal will see dock’s development support Vision 2030 industrial growth plans

JEDDAH: The transformation of a Saudi port into a global mega hub would be a major driver toward supporting the industrial growth plans of Vision 2030, business chiefs have said.

Saudi Global Ports Co. (SGP) on Oct. 1 took over management control of both container terminals at King Abdul Aziz Port Dammam (KAPD), making it the dock’s sole cargo facility operator.
The successful handover of the first terminal from Saudi Ports Authority (Mawani) to SGP was achieved following the signing on April 13 of a 30-year build, operate, and transfer (BOT) agreement between the two bodies.
The Saudi transport minister and Mawani chairman, Saleh bin Nasser Al-Jasser, said the backing of the Kingdom’s leadership for the transport and logistics sector had enabled the implementation of important initiatives and investments to strengthen the country’s seaports.
And he congratulated Mawani and SGP on reaching a key milestone toward achieving the Vision 2030 goal of using Saudi Arabia’s strategic geographic location to its logistical competitive advantage in helping to diversify the economy.
Abdullah Zamil, chairman of SGP, said: “I would like to express my gratitude to the management and working teams from Mawani and SGP for their close partnership. The smooth transition within a short timeline under the (COVID-19) pandemic situation is phenomenal.
“The positive relationship will be the catalyst to accelerate the developments to elevate the seaport and logistics capabilities of Dammam to support the industrial growth initiatives under Saudi Vision 2030.”
Since the signing of the BOT agreement, Mawani and SGP have worked closely on various activities including manpower retention, transfer of assets, engagement of the port community, and collaboration with stakeholders.
In addition to the transfer of equipment from Mawani, SGP has advanced the purchase and commissioning of more than 200 new items of handling equipment for both terminals.
Mawani’s president, Saad bin Abdul Aziz Al-Khalb, said: “I am confident that SGP will continue to raise the performance and customer service levels across both terminals through its strong business practices.

FASTFACT

• The successful handover of the first terminal from Saudi Ports Authority (Mawani) to SGP was achieved following the signing on April 13 of a 30-year build, operate, and transfer (BOT) agreement between the two bodies.

• When the planned expansion works are completed, KAPD’s annual container-handling capabilities will increase to an estimated 7.5 million twenty-foot equivalent units (a measure of cargo capacity).

“SGP invests and develops key infrastructure, focusing on environmentally friendly and technologically sophisticated systems to develop a modern Saudi workforce.”
SGP’s development and modernization plans will integrate both container terminals into a mega container hub, capable of competing globally and well-positioned for the future.
When the planned expansion works are completed, KAPD’s annual container-handling capabilities will increase to an estimated 7.5 million twenty-foot equivalent units (a measure of cargo capacity).
SGP’s estimated total investment of more than SR7 billion ($1.87 billion) is expected to be the largest seaport spend by a single operator under a public private partnership in the Kingdom.
Wan Chee Foong, port operator PSA International’s regional CEO for the Middle East and South Asia, said: “As both a shareholder and technical partner, PSA is committed to providing its expertise and leveraging its resources toward the transformation of King Abdul Aziz Port into a global mega hub, with modern and robust infrastructure, and through the cultivation of a strong Saudi workforce.”


China aims for sustained and healthy economic development

Updated 30 October 2020

China aims for sustained and healthy economic development

  • Beijing to let market forces play decisive role in resources allocation, report says

BEIJING: China is targeting sustained and healthy economic development in the five years to 2025, with an emphasis on a higher quality of growth, the Xinhua news agency said on Thursday, citing the ruling Communist Party’s Central Committee.

President Xi Jinping and members of the Central Committee, the largest of the ruling party’s elite decision-making bodies, met behind closed doors from Monday to lay out the 14th five-year plan, a blueprint for economic and social development.

China’s external environment “is getting more complicated,” the agency said, adding, “There is a significant increase in instabilities and uncertainties.”

BACKGROUND

China aims to boost its gross domestic product (GDP) per person to the level of moderately developed countries by 2035, while GDP is due to top 100 trillion yuan ($15 trillion) in 2020.

However, the country’s development was still in a period of important strategic opportunities, despite new challenges, it said.

It added that China aims to boost its gross domestic product (GDP) per person to the level of moderately developed countries by 2035, while GDP is due to top 100 trillion yuan ($15 trillion) in 2020.

China will also deepen reforms and let market forces play a decisive role in resources allocation, the agency said.

China will promote a “dual circulation” model, make self-sufficiency in technology a strategic pillar for development, move to develop and urbanize regions, and combine efforts to expand domestic demand with supply-side reforms, it added.

The “dual circulation” strategy, first proposed by Xi in May, envisages that China’s next phase of development will depend mainly on “domestic circulation” or an internal cycle of production, distribution and consumption, backed by domestic technological innovation.