Saudi port set for buoyant future as mega container hub

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

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.”


PIF’s real estate developer breaks ground on flagship Riyadh project

Updated 36 min 34 sec ago

PIF’s real estate developer breaks ground on flagship Riyadh project

PIF’s real estate developer breaks ground on flagship Riyadh project
  • Subsidiary hails strategic launch as part of Kingdom’s 10-year drive to increase home ownership rate to 70%

RIYADH: ROSHN, the real estate subsidiary of sovereign wealth fund the Public Investment Fund (PIF) has broken ground on its flagship residential project in the Saudi capital.

The developer’s first community project in the Saudi capital will cover an area of more than 20 million square meters. The project will consist of 30,000 housing units when complete, with 4,000 in the first phase.

The first district is strategically located in the north of the city, near Princess Noura University and south of King Khalid International Airport. The site connects residents to the main roads and transportation network, in addition to parks, pedestrian paths, bicycle paths, restaurants, cafes, schools and mosques.

David Grover, group CEO at ROSHN, said: “The announcement of the Riyadh community represents the initial step in the realization of our vision to become the most trusted community developer in Saudi Arabia. We are deeply committed to contributing to Vision 2030’s plans to increase the rate of home ownership in the country to 70 percent, while delivering high-quality homes and excellent amenities to the Saudi people.”

Launched in August this year, ROSHN has put in place a 10-year plan to develop neighborhoods across the Kingdom in eight phases.

“We are proud to launch ROSHN, a national company specialized in developing modern residential compounds, as part of PIF strategy to develop (Saudi Arabia’s) real estate market,” PIF said in a tweet.

Last month, ROSHN announced the signing of SR1.6 billion ($426 million) in new construction contracts.

According to a press statement last week, sales of off-plan homes at the new site will start in the first half of 2021.